Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook for future performance [4][7]. Core Insights - In the first half of 2025, the company achieved revenue of 507 million yuan, a year-on-year increase of 40.47%, and a net profit attributable to shareholders of 110 million yuan, up 211.25% year-on-year [1]. - The significant growth in performance is attributed to the successful implementation of the Thailand production base and the rising prices of natural vanillin products due to global supply-demand changes [2][3]. - The company is focusing on developing a fourth product system based on biosynthesis technology, which aims to diversify its product line and meet new market demands [4]. Business Performance Summary - Revenue from synthetic flavors, cooling agents, and natural flavors in the first half of 2025 was 127 million yuan, 124 million yuan, and 253 million yuan, respectively, with varying gross margins [2]. - The Thailand production base has reached near full production capacity, contributing significantly to the company's sales and profits [3]. - The company plans to expand its Thailand base with a new synthetic vanillin production line, expected to add 4,000 tons of capacity [3]. Financial Forecast - The projected net profits for 2025, 2026, and 2027 are 260 million yuan, 342 million yuan, and 406 million yuan, respectively, with corresponding PE ratios of 20X, 15X, and 13X [4][6]. - The company is expected to see substantial revenue growth, with estimates of 1.78 billion yuan in 2025, representing a growth rate of 123.4% [6][10].

Core Viewpoint - The company reported significant growth in its financial performance for the first half of 2025, driven by successful production ramp-up at its Thailand facility and favorable pricing for natural vanillin products [2][7]. Financial Performance - The company achieved operating revenue of approximately 507 million yuan, a year-on-year increase of 40.47% [2][7]. - Net profit attributable to shareholders reached about 110 million yuan, reflecting a substantial year-on-year growth of 211.25% [2][7]. - The net profit excluding non-recurring gains and losses was approximately 64.85 million yuan, up 87.90% compared to the previous year [2][7]. - In Q2 2025, the company reported a single-quarter revenue of 246 million yuan, a year-on-year increase of 31.35% [7]. Product Breakdown - Natural flavor products became the largest product category, contributing approximately 253 million yuan, accounting for about half of total revenue [2]. - Synthetic flavor products showed rapid growth, with revenue contribution of 127 million yuan, representing an increase of over 180% year-on-year [2]. - Cooling agents generated revenue of 124 million yuan [2]. Competitive Advantage - The company's Thailand factory is expected to benefit from the U.S. imposing a 50% tariff on Indian exports, while Thai products face only a 19% tariff, enhancing competitive positioning [3]. Future Outlook - The Thailand factory is positioned as a key global production base, with plans for multiple phases focusing on natural and synthetic flavors, as well as future biotechnological products [4]. - The company anticipates a gradual increase in the prices of vanillin products in the second half of the year due to tightening global supply and reduced production from overseas manufacturers [5]. Operational Insights - The company is currently transitioning domestic production capacity to Thailand, which has led to a stabilization in revenue growth [6]. - The company is focusing on expanding its market presence, new product development, and cost control to enhance operational efficiency [6].