Core Viewpoint - The company, Reap Bio, announced the launch of several new products in its biopharmaceutical, drug formulation, and pet care segments for the second half of the year, focusing on advanced vaccine technology and innovative treatments for various animal health needs [1] Group 1: Biopharmaceutical Segment - The company plans to introduce new vaccines, including the new dual live vaccine and new inactivated vaccines targeting key poultry diseases, enhancing multi-valent technology and broad-spectrum antigens [1] - The upgrades aim to meet diverse vaccination needs across different farming scenarios, indicating a strategic focus on addressing core disease challenges in poultry farming [1] Group 2: Drug Formulation Segment - The company will launch its independently developed long-acting sustained-release formulation of Cefoperazone crystals and its injectable form [1] - Additionally, it will introduce a new crystal form of Vornidazole hydrochloride with independent intellectual property rights, targeting Mycoplasma infections in poultry for the first time [1] Group 3: Pet Care Segment - The company aims to enhance its product matrix in the pet care sector by launching new products such as cat interferon, krill oil, and probiotics [1] - This initiative is part of a broader strategy to provide a comprehensive range of products from prevention to treatment and nutritional health, showcasing the continued emphasis on product cluster scale effects [1]

Competitive Advantages - Reap Bio is one of the largest and most comprehensive veterinary drug companies in China, with significant R&D advantages, including 117 new veterinary drug registration certificates and an annual R&D investment exceeding 100 million RMB [2][3] - The company has a full product line system that provides a closed-loop service from detection to clinical validation, helping to reduce costs and improve efficiency for clients [2][3] - The company has a notable first-mover advantage in the pet medicine sector, with 17 new veterinary drug registration certificates for pets and strategic layouts in innovative drugs and mRNA vaccines [3] Strategic Development - Reap Bio is focusing on high-quality development driven by innovation, accelerating the development of third-generation vaccines and new drugs, and deepening strategic cooperation with breeding groups [3][4] - The company is actively pursuing internationalization and exploring potential sectors such as synthetic biology to create new growth drivers [3][4] Product Launches and Innovations - Key products to be launched in the second half of 2025 include new vaccines and long-acting formulations, aimed at addressing core diseases in poultry farming [7][8] - The company is also expanding its product matrix in the pet sector with new offerings such as cat interferon and probiotics, enhancing its comprehensive product range [7][8] Financial Performance - In the first half of 2025, the company reported revenue of 1.708 billion RMB and a net profit of 257 million RMB, representing year-on-year growth of 20.53% and 57.59% respectively [14] - The company has repurchased 10.68 million shares, with a total repurchase amount of 1.9 billion RMB, maintaining a cash dividend payout ratio of 44.32% [14] Market Position and Future Outlook - The company is committed to maintaining its market position in the pet medical sector and is exploring potential mergers and acquisitions to strengthen its competitive edge [12][13] - Reap Bio is also focusing on enhancing its online sales channels and integrating its products with pet hospitals to increase customer traffic and sales [7][8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's revenue for H1 2025 reached 1.708 billion yuan, a year-on-year increase of 20.53%, with a net profit attributable to the parent company of 257 million yuan, up 57.59% year-on-year [4][5] - The poultry vaccine segment showed significant growth, with a focus on new product launches in the second half of the year [5] - The pet medical segment is expected to open up long-term growth opportunities, supported by a robust supply chain and product offerings [6] Financial Performance - In H1 2025, the company achieved a gross margin of 28.44%, an increase of 2.36 percentage points year-on-year, driven by product mix optimization [4] - The company plans to achieve revenues of 3.723 billion yuan, 4.334 billion yuan, and 4.939 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 500 million yuan, 605 million yuan, and 702 million yuan [7] Segment Analysis - The poultry vaccine segment generated 611 million yuan in revenue, a year-on-year increase of 24.71%, while the livestock biological products segment saw a remarkable growth of 110.55% [5] - The pet medical segment's revenue reached 415 million yuan, growing by 17.94% year-on-year, with plans to launch new products to enhance the product matrix [6]