Core Viewpoint - The company expects significant growth in net profit for the first three quarters of 2025, driven by improvements in its cottonseed and plant extraction businesses, with projected net profit growth of 344.05%-401.55% year-on-year [1] Group 1: Financial Performance - The company forecasts a net profit attributable to shareholders of 278-314 million yuan for January to September 2025, with a non-recurring net profit of 218-254 million yuan, indicating a year-on-year increase of 1398.00%-1645.38% [1] - For Q3 2025, the expected net profit is between 63-99 million yuan, with a non-recurring net profit of 34-70 million yuan, showing significant improvement compared to Q3 2024, where the net profit was -37 million yuan and the non-recurring net profit was -65 million yuan [1] Group 2: Business Operations - The company has implemented a strict operational model to maintain stable operations, benefiting from the overall recovery in cottonseed product prices [1] - The plant extraction business has seen a recovery in revenue and gross profit due to the upward trend in several key products, contributing to the overall improvement in profitability [1] Group 3: Market Outlook - The company is positioned to benefit from the upcoming ban on synthetic food colorants by the FDA, which is expected to boost demand for natural colorants and enhance industry prosperity [2] - The company’s strategic layout and product reserves are anticipated to yield long-term competitive advantages, with a gradual release of benefits in the coming years [2] Group 4: Profit Forecast and Investment Rating - The company is projected to achieve net profits of 376 million, 501 million, and 612 million yuan for 2025-2027, representing year-on-year growth of 299%, 33%, and 22% respectively, with corresponding PE ratios of 17X, 13X, and 10X [2] - The company maintains a "strong buy" rating, supported by its leading position in the plant extraction industry and its ability to replicate successful multi-product development models efficiently [2]

Core Viewpoint - The company reported a slight decline in revenue but a significant increase in net profit and earnings per share, indicating strong operational efficiency and profitability despite revenue challenges [1][2]. Financial Performance - In Q1 2025, the company achieved revenue of 1.716 billion yuan, a year-on-year decrease of 0.9% [1]. - The net profit attributable to shareholders was 109 million yuan, reflecting a year-on-year increase of 183.7% [1]. - Basic earnings per share (EPS) reached 0.2266 yuan, up 212.6% year-on-year [1]. Business Segment Analysis - The cottonseed business has returned to normal operations, while the plant extraction business has exceeded expectations [2]. - The plant extraction segment generated revenue of 867 million yuan, a year-on-year increase of 13.8%, with a gross margin improvement of 2.15 percentage points [2]. - The cottonseed segment reported revenue of 760 million yuan, a year-on-year decrease of 9.5%, with a gross margin of approximately 6.1% [2]. Market Strategy - The company adopted a strategy of "price for volume," leading to increased sales volume and revenue growth in various product lines [3]. - The price of chili red pigment significantly decreased, resulting in a revenue increase of approximately 7% due to volume elasticity [3]. - The company capitalized on domestic raw material cost advantages to expand into overseas markets, with chili extract sales doubling and contributing to a revenue increase of about 24% [3]. Long-term Outlook - The company is focused on long-term advantages, expanding overseas planting bases, and making breakthroughs in new businesses such as traditional Chinese medicine and health products [3]. - The company anticipates maintaining high growth rates in performance as major products return to a cyclical uptrend [3]. Investment Recommendation - The company is a leading player in the plant extract sector, with stable profitability in key products and a strong growth trajectory in market share [4]. - The ongoing construction of the Zambia plantation is expected to further reduce costs, and the health product business shows significant potential for growth [4]. - Projected EPS for 2025-2027 is 0.67, 0.83, and 1.00 yuan, with corresponding price-to-earnings ratios of 16.3X, 13.1X, and 10.9X, maintaining a "buy" rating [4].