Investment Rating - The report maintains a "Buy" rating for the company with a target price based on the last closing price of 10.62 [1] Core Insights - The company's revenue for the first three quarters of 2025 reached 1.042 billion yuan, representing a year-on-year increase of 7.38%, while the net profit attributable to shareholders was 161 million yuan, a decrease of 4.85% year-on-year. In Q3 2025 alone, revenue was 423 million yuan, up 17.76% year-on-year, and net profit was 101 million yuan, an increase of 116.40% year-on-year [4][5] - The core products continue to see significant growth, particularly in the swine vaccine segment, with sales of foot-and-mouth disease vaccines increasing by 50% year-on-year, and diarrhea vaccines seeing a 120% increase in revenue. The company is also making steady progress in developing new vaccines, including a novel mRNA vaccine for feline infectious peritonitis [5][7] Financial Performance Summary - The company forecasts revenues of 1.569 billion yuan for 2025, 1.851 billion yuan for 2026, and 2.073 billion yuan for 2027, with net profits projected at 283 million yuan, 320 million yuan, and 335 million yuan respectively. The corresponding EPS for these years is expected to be 0.25 yuan, 0.29 yuan, and 0.30 yuan, with PE ratios of 42.57, 37.67, and 35.91 respectively [5][7][9] - The gross margin is projected to be 54.00% in 2025, with a net profit margin of 18.03% [9]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is experiencing a recovery in performance, with a focus on the orderly advancement of non-epidemic vaccine clinical trials. The revenue for Q1-Q3 2025 reached 1.042 billion yuan, a year-on-year increase of 7.38%, while the net profit attributable to shareholders was 161 million yuan, a year-on-year decrease of 4.85%. In Q3 alone, revenue was 423 million yuan, up 17.76% year-on-year, and net profit increased significantly by 116.40% year-on-year [2][3] - The company maintains its profit forecast for 2025-2027, expecting net profits of 188 million yuan, 352 million yuan, and 508 million yuan respectively, with corresponding EPS of 0.17 yuan, 0.32 yuan, and 0.46 yuan. The current stock price corresponds to PE ratios of 65.4, 35.0, and 24.3 times for the respective years [2] Summary by Sections Financial Performance - For Q1-Q3 2025, the company reported a revenue of 1.042 billion yuan, a 7.38% increase year-on-year, and a net profit of 161 million yuan, down 4.85% year-on-year. Q3 revenue was 423 million yuan, up 17.76% year-on-year, with net profit soaring by 116.40% year-on-year [2] - The company forecasts net profits of 188 million yuan in 2025, 352 million yuan in 2026, and 508 million yuan in 2027, with EPS projected at 0.17 yuan, 0.32 yuan, and 0.46 yuan respectively [2][3] Market Position and Growth - The company is expanding its market share in the competitive pig vaccine sector, with Q1-Q3 2025 sales of pig foot-and-mouth disease vaccines increasing by 50% year-on-year. The revenue from non-foot-and-mouth vaccines also saw significant growth, with diarrhea vaccine revenue up 120% year-on-year [3] - Direct sales channels for poultry vaccines showed strong performance, with a 40% year-on-year increase in direct sales revenue. The company is also expanding its international business, with revenue growth exceeding 16 million yuan in Q1-Q3 2025 [3] Research and Development - The company emphasizes stable operations and innovation in R&D, with R&D expenses of 96 million yuan in Q1-Q3 2025, a 9.08% increase year-on-year. The non-epidemic vaccine development is progressing, with the first clinical trial expected to begin by the end of December 2025 [4]

Investment Rating - The report maintains a "Recommended" investment rating for the industry, suggesting a potential upside of over 15% relative to benchmark indices [4]. Core Insights - The swine industry shows stable breeding profits, with a focus on capacity reduction logic. The average price of external three yuan pigs was 15.0 CNY/kg, up 2.1% week-on-week, while the average weight of pigs sold was 128.6 kg, down 0.2% [19][20]. - The beef industry is at an inflection point, with strong price performance continuing. The average price of calves was 28.2 CNY/kg, up 2.1%, and the average price of fattened cattle was 25.8 CNY/kg, up 0.7% [23][30]. - The white chicken market is affected by ongoing avian influenza, with significant impacts on breeding stock and prices. The average price of white feather broiler chicks was 2.8 CNY/chick, up 9.5% [31][34]. - The animal health sector is seeing a recovery in demand as breeding supply stabilizes, with a notable increase in the issuance of vaccines [48][49]. Summary by Sections Swine Industry - The average price of external three yuan pigs was 15.0 CNY/kg, reflecting a week-on-week increase of 2.1%. The average weight of pigs sold was 128.6 kg, down 0.2%. The price of 15 kg external three yuan piglets was 668 CNY/head, with a slight decrease of 0.05% [19][21]. - Supply pressure remains stable, with normal sales rhythms from large producers and limited sales from smallholders. The demand side shows increased activity from secondary breeding, but overall consumption remains weak [20][21]. - The report recommends companies such as Muyuan Foods, Wens Foodstuff Group, and New Hope Liuhe for investment [20]. Beef Industry - The beef breeding industry is entering a capacity release phase, with the earliest signs of a price bottom forming. The report anticipates a potential recovery in the industry by late 2025 or early 2026 [23][30]. - The average wholesale price of beef was 61.4 CNY/kg, reflecting a slight increase of 0.2% [29][30]. - Recommended companies include Fucheng Co. and Guangming Meat Industry, focusing on integrated breeding and sales [23]. Poultry Industry - The average price of white feather broiler eggs was 1.6 CNY/egg, up 2.0%, while the average price of white feather broilers was 3.7 CNY/kg, up 2.2% [31][34]. - The report highlights the impact of avian influenza on breeding imports, particularly from the U.S. and New Zealand, which has been suspended for over three months [31][32]. - Recommended companies include Yisheng Livestock and He Feng Food [31]. Animal Health Sector - The demand for animal health products is expected to recover as breeding supply stabilizes. The issuance of vaccines has shown significant increases, particularly for swine diseases [48][49]. - The report recommends companies like Kexin Biological and Zhongmu Biotechnology, which are positioned to benefit from the recovery in the animal health market [49].