Group 1 - Dongbao Biological experienced a stock price increase of 7.04%, reaching 5.93 CNY per share, with a trading volume of 87.45 million CNY and a turnover rate of 2.63%, resulting in a total market capitalization of 3.52 billion CNY [1] - The company, founded on March 12, 1997, and listed on July 6, 2011, is located in Baotou, Inner Mongolia, and specializes in the research, production, and sales of gelatin products and low molecular weight collagen [1] - The main revenue composition of Dongbao Biological includes capsule business (54.13%), gelatin products and by-products (37.30%), collagen business (7.81%), organic fertilizer (0.53%), and others (0.22%) [1] Group 2 - Among the top ten circulating shareholders of Dongbao Biological, one fund from GF Fund Management, GF Jufeng Mixed A (270005), entered the list in the third quarter, holding 4.52 million shares, which accounts for 0.77% of the circulating shares [2] - The estimated floating profit for GF Jufeng Mixed A today is approximately 1.76 million CNY [2] - GF Jufeng Mixed A was established on December 23, 2005, with a current scale of 3.37 billion CNY, and has achieved a year-to-date return of 30.78%, ranking 1994 out of 8136 in its category [2]

Core Viewpoint - Dongbao Biological is a leading gelatin and collagen producer in China, with significant technological barriers and a notable market share in the industry [1] Group 1: Business Overview - Dongbao Biological was established on March 12, 1997, and listed on the Shenzhen Stock Exchange on July 6, 2011, with its registered and operational base in Baotou, Inner Mongolia [1] - The company's main business includes the research, production, and sales of gelatin products and low molecular weight collagen, categorized under the pharmaceutical and biological industry [1] Group 2: Financial Performance - For Q3 2025, Dongbao Biological reported revenue of 533 million yuan, ranking 22nd among 34 companies in the industry, with the industry leader, Changchun High-tech, generating 9.807 billion yuan [2] - The net profit for the same period was 48.447 million yuan, placing the company 20th in the industry, while the top performer, Tonghua Dongbao, achieved a net profit of 1.188 billion yuan [2] Group 3: Financial Ratios - As of Q3 2025, Dongbao Biological's debt-to-asset ratio was 32.50%, higher than the industry average of 26.88% and improved from 36.68% in the previous year [3] - The company's gross profit margin was 24.53%, an increase from 22.62% year-on-year, but still below the industry average of 70.17% [3] Group 4: Executive Compensation - The chairman, Wang Aiguo, received a salary of 9,600 yuan for 2024, unchanged from the previous year, while the general manager, Liu Fang, earned 745,100 yuan, a decrease of 32,000 yuan from 2023 [4] Group 5: Shareholder Information - As of September 30, 2025, the number of A-share shareholders decreased by 6.01% to 20,500, while the average number of circulating A-shares held per shareholder increased by 6.39% to 28,800 [5]

Investment Rating - The investment rating for the company is "Outperform" [1] Core Views - The company is expected to see significant profit growth in 2024, with a projected net profit of 676 million yuan, representing a year-on-year increase of 45.2% [5] - The company plans to initiate a listing process on the Hong Kong Stock Exchange to enhance its global strategic layout [5] - The company has experienced a decline in profit margins despite an increase in sales volume for modified plastics and composite materials [5] Financial Data and Profit Forecast - Total revenue for 2024 is projected at 19.22 billion yuan, with a year-on-year growth rate of 10.2% [4] - The net profit for 2025 is estimated at 706 million yuan, with an expected growth rate of 4.4% [4] - Earnings per share (EPS) are forecasted to be 2.60 yuan for 2025, 3.45 yuan for 2026, and 3.94 yuan for 2027 [5][4] Sales Performance - In 2024, the company achieved sales of 1.0632 million tons of organic polymer modified materials, a year-on-year increase of 7% [5] - The sales volume of organic polymer composite materials reached 349,600 tons in 2024, reflecting a year-on-year growth of 23% [5] - The company has made advancements in the development of composite materials for the new energy sector, including breakthroughs in lightweight materials for eVTOL structures [5] Strategic Acquisitions - The company acquired 99.99% of Hong Kong Petrochemical and 67% of Guoen Dongming, enhancing its integrated advantages in the industry [5] - The acquisition of these assets is expected to significantly contribute to the company's production capacity and revenue growth in the future [5] Health Industry Performance - The health sector subsidiary, Dongbao Biological, reported a net profit of 86 million yuan in 2024, a decrease of 28% year-on-year due to price reductions in downstream pharmaceuticals [5] - The company is expanding its production capacity in the health sector, with plans to increase capsule production significantly [5]