Core Viewpoint - The company has demonstrated strong revenue growth and improved profitability in the first half of 2025, driven by its core business in veterinary biological products and successful new product developments [1][2][3]. Financial Performance - In H1 2025, the company achieved operating revenue of 487 million yuan, a year-on-year increase of 21.67% - The net profit attributable to the parent company was 220 million yuan, up 44.09% year-on-year - The net profit after deducting non-recurring gains and losses was 190 million yuan, reflecting a 43.12% increase year-on-year - In Q2 2025, the operating revenue reached 242 million yuan, a year-on-year growth of 23.79% - The net profit attributable to the parent company for Q2 was 112 million yuan, marking a 70.78% increase year-on-year [1]. Business Segments - The veterinary biological products segment generated revenue of 461 million yuan in H1 2025, representing a year-on-year growth of 28.35% - The gross profit margin improved to 67.28%, an increase of 4.04 percentage points year-on-year - The net profit margin reached 45.00%, up 6.99 percentage points year-on-year - The company effectively controlled its operating expenses, with the sales expense ratio decreasing by 3.48 percentage points and the management expense ratio down by 0.34 percentage points [2]. R&D and Innovation - The company has made significant progress in new product development, obtaining new veterinary drug certificates for several vaccines, including: - A new live vaccine for bovine mycoplasma (HB150 strain) - A combined live vaccine for swine fever and rabies - A trivalent inactivated vaccine for swine infectious gastroenteritis, porcine epidemic diarrhea, and porcine deltacoronavirus - A four-component inactivated vaccine for avian diseases [3]. Strategic Initiatives - The company is expanding into the feed protein and pig farming sectors, aligning with national strategies for reducing feed protein usage - Collaborations with key laboratories are underway to explore the use of black soldier fly and microorganisms for converting agricultural waste into insect protein - The subsidiary, Zhule Tianyuan, achieved operating revenue of 20.78 million yuan in H1 2025 [4]. Profit Forecast and Investment Rating - Based on the company's ongoing positive performance, revenue forecasts for 2025-2027 have been adjusted to 1.13 billion, 1.35 billion, and 1.56 billion yuan, reflecting year-on-year growth rates of 20.01%, 19.65%, and 15.26% respectively - The net profit forecasts for the same period are 475 million, 566 million, and 646 million yuan, with year-on-year growth rates of 24.12%, 19.20%, and 14.17% - The current price-to-earnings ratios are projected to be 18x, 15x, and 13x respectively, maintaining a "buy" rating due to the rich new product pipeline [4].