Core Viewpoint - The company has shown significant recovery in its financial performance following the divestiture of its IVD business, with a strong growth trajectory in revenue and net profit for the first three quarters of 2025 [1][2]. Financial Performance - For the first three quarters of 2025, the company reported revenue of 186 million yuan, an increase of 17.45% year-on-year, and a net profit attributable to shareholders of 18 million yuan, up 362.49% [1]. - In Q3 2025, the company achieved revenue of 76 million yuan, reflecting a growth of 40.34%, and a net profit of 16 million yuan, which is a 187.43% increase [1]. Business Strategy and Developments - The impact of the IVD business divestiture has been fully realized, leading to a positive trend in overall performance. The company experienced a revenue decline of 63.01% and a net loss of 185 million yuan in 2023, but has since turned profitable in 2024 with a net profit of 17 million yuan [2]. - A significant overseas collaboration was established with global biotech giant Chr. Hansen, involving a five-year agreement worth 73.06 million euros (approximately 600 million yuan) for dairy product testing. This partnership is expected to drive future growth in international markets [3]. - The company is expanding its business in both B2B and B2G sectors, with notable collaborations in the cold chain and retail sectors, as well as successful bids for government projects in various provinces [4]. Future Outlook - The company anticipates continued growth, projecting net profits of 25 million yuan, 50 million yuan, and 70 million yuan for 2025 to 2027, with year-on-year growth rates of 44.9%, 100.3%, and 40.2% respectively [4]. - A DCF model estimates the company's overall valuation at 5.9 billion yuan, with a target price of approximately 15 yuan per share, maintaining a "recommended" rating [4].

Core Viewpoint - The company focuses on food safety rapid testing and animal diagnostics, aiming to expand its market presence both domestically and internationally through innovative products and strategic partnerships [5][10][19]. Company Overview - The company specializes in food safety rapid testing and is expanding into animal diagnostics, providing comprehensive testing solutions across various stages of the food supply chain [5][10]. - The main products include rapid test reagents, testing instruments, and related services, ensuring food safety from production to retail [6][8]. Business Segments Food Safety Rapid Testing - The company offers a range of rapid test products, including immunochromatographic test strips and ELISA kits, applicable to various food categories such as dairy, meat, and vegetables [6][7]. - The company has developed a high-throughput multi-residue testing card for pesticide residues, capable of detecting 16 types of pesticides simultaneously within 9 minutes [8][22]. Animal Diagnostics - The animal diagnostics segment is managed by a wholly-owned subsidiary, focusing on rapid testing for livestock and companion animals, including pregnancy tests and pathogen detection [10][24]. - The company aims to leverage its existing customer base in food safety to enhance sales in animal diagnostics, particularly in markets with significant livestock populations [24]. Market Strategy - The company is deepening its international strategy, targeting untapped markets in dairy product testing and other areas, with a focus on obtaining local certifications and building partnerships [19][20]. - The global market for mycotoxin testing kits is projected to reach $825.7 million by 2028, indicating significant growth potential for the company's products in this area [19]. Regulatory Environment - Increasing domestic regulations on food safety are driving demand for testing services, as companies seek to comply with stricter standards [25]. - The company is positioned to benefit from heightened consumer awareness regarding food safety, leading to increased testing requirements from food producers and retailers [25]. Technological Innovation - The company has developed an automated digital testing platform that enhances testing efficiency and reduces costs for clients, integrating data management and real-time monitoring [26]. - A new chemiluminescence technology platform allows for multi-parameter testing in a single device, streamlining the testing process and improving accuracy [27]. Financial Performance - The company has maintained a stable financial position, with no need for restating previous financial data, indicating consistent operational performance [30]. - The company has received various certifications, reflecting its commitment to quality and innovation in the testing industry [29].