Investment Rating - The investment rating for the company is "Buy" with a maintained rating for the next six months [7]. Core Views - The company has shown steady revenue growth, with a 11.02% year-on-year increase in revenue to 3.051 billion RMB in the first half of 2025, and a 10.74% increase in net profit to 818 million RMB [1]. - The company is actively expanding its business through acquisitions, including a 70% stake in Dongfeng Majiji Pharmaceutical and an 80% stake in Inner Mongolia Alashan Congrong Group, which will enhance its product portfolio [4]. - The company has improved its cash flow, with a net cash flow from operating activities of 9.65 billion RMB in the first half of 2025, indicating a shift towards high-quality development [3]. Financial Performance - In the first half of 2025, the core product, Ejiao and its series, generated revenue of 2.845 billion RMB, reflecting a growth of 11.50% year-on-year, with a gross margin of 74.83% [2]. - The company’s cash reserves are robust, with a cash and cash equivalents balance of 4.004 billion RMB at the end of the period [3]. - The revenue forecast for 2025-2026 has been slightly adjusted to 67.81 billion RMB and 77.85 billion RMB respectively, with net profit estimates raised to 17.94 billion RMB and 20.66 billion RMB for the same periods [5]. Valuation Metrics - The company’s earnings per share (EPS) is projected to be 2.79 RMB in 2025, with a price-to-earnings (P/E) ratio of 16.81 [5]. - The projected revenue growth rates for 2025 and 2026 are 14.53% and 14.81% respectively, indicating a stable growth trajectory [5]. - The company maintains a low debt-to-asset ratio of 19.17%, reflecting a strong balance sheet [7].

Core Insights - The company's total revenue for the reporting period reached approximately 3.05 billion, representing a significant increase from the previous year's 2.75 billion, marking a growth of about 11% [1] Revenue Breakdown - **By Industry**: - Pharmaceutical industry generated approximately 2.99 billion, accounting for 97.88% of total revenue, up from 2.68 billion (97.66%) year-on-year [1] - Donkey breeding and trade contributed about 33.81 million, down from 37.26 million, representing a decline [1] - Other segments generated around 30.72 million, slightly up from 27.14 million [1] - **By Product**: - Revenue from Ejiao and related products increased by 11.50% to approximately 2.84 billion, while other pharmaceuticals and health products saw a growth of 7.06% to about 141.67 million [1] - Donkey breeding and trade revenue decreased by 9.27% to around 33.81 million [1] - **By Region**: - East China accounted for approximately 1.72 billion (56.32%), up from 1.40 billion (51.13%) [1] - South China generated about 301.12 million (9.87%), down from 358.63 million (13.05%) [1] - Other regions showed varied performance, with North China at 298.28 million (9.78%) and South West at 226.57 million (7.43%) [1]