Group 1: Utilities - Recommended stock: Su Yan Jing Shen (603299.SH) due to its stable cash flow from traditional salt and salt chemical businesses, and the potential growth from gas storage projects [3][4] - The company is expected to enter a performance release period with the first phase of the gas storage project nearing production [4] Group 2: Pharmaceuticals - Recommended stock: Ang Li Kang (002940.SZ) as the impact of centralized procurement is gradually clearing, and new products are expected to drive revenue growth [4] - The introduction of ALK-N001, a promising anti-tumor candidate, is anticipated to enhance the company's innovation capabilities [4] Group 3: Media - Recommended stock: Alibaba-W (09988.HK) with a focus on the stabilization of traditional e-commerce and the potential for growth in the instant retail sector [5] - Alibaba Cloud's leading position in the domestic market and continuous revenue growth are highlighted [5] Group 4: Electronics - Recommended stock: Zhong Wei Company (688012.SH) due to its robust order backlog and continuous revenue growth driven by new product launches [6] Group 5: Non-Banking Financials - Recommended stock: China Life (601628.SH) for its excellent asset-liability matching and early transformation in dividend insurance sales [8] - The company is expected to release significant solvency capacity following asset reclassification [8] Group 6: Automotive - Recommended stock: Li Auto (02015.HK) as the company is positioned to leverage its strategic foresight and adaptability in the evolving automotive landscape [9] - The i-series is expected to maintain strong sales momentum, with the first model projected to achieve over 5,000 monthly sales [9] Group 7: Transportation - Recommended stock: YTO Express (600233.SH) with a leading growth rate in business volume, benefiting from the "anti-involution" trend in the industry [10] Group 8: Agriculture - Recommended stock: De Kang Agriculture (02419.HK) as it is positioned at a pivotal point in the agricultural sector, leveraging technology and innovative models for growth [12] - The company's platform strategy is expected to extend into other agricultural segments, enhancing its market presence [12] Group 9: Metals and New Materials - Recommended stock: Luoyang Molybdenum (603993.SH) with a strong performance in the first quarter, exceeding expectations [14] Group 10: North Exchange - Recommended stock: Yuan Hang Precision (833914.BJ) as a leading player in the domestic nickel-based conductor materials sector, benefiting from stable demand across multiple industries [14][15]

Core Investment Logic - The impact of the national procurement of Lefuyin is gradually diminishing, and with the launch and promotion of new products, the company's performance is expected to return to a growth trajectory [1][2] - The company is firmly advancing its innovation transformation, introducing the ALK-N001 (DXd) which opens up new possibilities. ALK-N001 is a tumor-responsive prodrug designed based on the TMEA platform, which has shown significant efficacy and safety trends compared to existing first-line chemotherapy regimens in phase 3 trials of its first drug, Legu Bixin [1][3] Business Overview - Established in 2001, the company has over 20 years of experience in the pharmaceutical field, transitioning from generic to innovative drugs. It primarily engages in the R&D, production, and sales of chemical raw materials, chemical preparations, pharmaceutical excipients, and specialty intermediates [1] - The company has a significant advantage in cardiovascular preparations, oral cephalosporin raw materials, alpha-keto acid raw materials, inhalation anesthetics, anti-androgen intermediates, and plant-derived cholesterol products [1] Financial Performance and Forecast - The company expects a revenue of 1.54 billion in 2024, a year-on-year decrease of 5%. The decline in performance is mainly due to the impact of the Lefuyin product, particularly from the eighth batch of national procurement [2] - The company anticipates a rebound in performance driven by the approval and promotion of new products, including the "light-foot" compound alpha-keto acid tablets and the cooperative product Ediguanol soft capsules [2] - Profit forecasts for 2025-2027 are projected at 132 million, 170 million, and 216 million respectively, with year-on-year growth rates of 64%, 29%, and 27% [4] New Growth Areas - The company is expanding into new fields such as plant cholesterol and animal health, aiming to create new growth drivers. The acquisition of Keri Bio in 2023 is expected to provide stable cash flow, with a projected net profit margin of 40% in 2024 [2] - The company's animal health business focuses on pet medications, with a target to double the sales of isoflurane by 2025, and numerous ongoing projects in pet medications that could become new growth points [2] Drug Development and Innovation - ALK-N001 is a tumor-responsive prodrug designed to achieve targeted delivery in the tumor microenvironment, aiming for high efficacy and low toxicity. The TMEA-SMDC platform has been validated through positive phase 3 trial results of Legu Bixin [3] - The company has reached an agreement with Affinity for the authorization of ALK-N001/QHL-1618, obtaining all rights in Greater China. ALK-N001 is expected to be a strong candidate for tumor treatment due to its enhanced cytotoxicity [3]

Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance [4][9]. Core Views - The company's main business is expected to stabilize and recover, with innovative anti-cancer drugs showing improved efficacy and reduced toxicity, suggesting that the platform may have been validated [4][11]. - The impact of the national procurement on the core product, Leflunomide, is gradually diminishing, and with new products being launched, the company's performance is anticipated to return to a growth trajectory [6][11]. Summary by Sections Company Overview - The company, established in 2001, specializes in the research, production, and sales of chemical raw materials, chemical preparations, pharmaceutical excipients, and specialty intermediates. It was listed on the Shenzhen Stock Exchange in 2018 [16]. - The company has a strong position in cardiovascular preparations, oral cephalosporin raw materials, alpha-keto acid raw materials, inhalation anesthetics, and androgen hormone intermediates [16]. Financial Performance - The company reported a revenue of 1.54 billion yuan in 2024, a decrease of 5% year-on-year. The decline is primarily attributed to the impact of Leflunomide's inclusion in national procurement [6][24]. - The company expects a rebound in revenue, projecting 1.81 billion yuan in 2025, with a year-on-year growth rate of 17.7% [8]. Product Development and Innovation - The introduction of ALK-N001, an innovative anti-cancer drug, is based on the TMEA platform, which has shown promising clinical results. The first drug from this platform, Legobit, has completed Phase III trials, demonstrating superior efficacy and safety compared to existing chemotherapy options [7][11]. - The company is actively expanding into new fields such as plant sterols and animal health, which are expected to become new growth drivers [6][11]. Profit Forecast and Valuation - The forecasted net profits for 2025, 2026, and 2027 are 132 million yuan, 170 million yuan, and 216 million yuan, respectively, with growth rates of 64%, 29%, and 27% [8][9]. - The current stock price corresponds to a price-to-earnings ratio (P/E) of 69, 54, and 42 for the years 2025, 2026, and 2027, respectively [9].

Group 1: Financial Performance - In Q1 2025, the company's revenue decreased by 15.31% compared to the same period in 2024, primarily due to a decline in demand for antibiotics and the impact of the "Four Same" policy on product sales and pricing [1] - The total revenue for 2024 saw a year-on-year decline of 5.41%, attributed to the exit of the product Zuo Yi from the hospital market due to centralized procurement [1] Group 2: Product Development and R&D - The company has received approval for clinical trials of the injectable ALK-N001 from the National Medical Products Administration [3] - R&D investment in 2024 is expected to increase significantly due to new investments in innovative drugs and improvements in existing drugs [9] - The compound α-keto acid tablets were selected in the tenth batch of national procurement, with a selected price of 8.52 CNY per box and an estimated procurement volume of 800 million boxes [8] Group 3: Export and Market Strategy - In 2024, the company's export sales amounted to 398 million CNY, accounting for 25.85% of total revenue, with a significant portion of the subsidiary Keri Bio's revenue coming from overseas clients [10] - The company plans to leverage its brand influence to expand the market for Zuo Yi outside hospitals [2] Group 4: Future Expectations - The company aims to enhance sales in 2025 through selected products from national procurement and new products with technical barriers, such as Sacubitril/Valsartan tablets [11] - The animal health technology sector is currently in a loss phase but is expected to become a new growth point as new products are approved and launched [12]