Core Viewpoint - The stock price of Pulaike has shown a positive trend with a year-to-date increase of 6.44%, reflecting a strong performance in the animal health sector [2] Group 1: Stock Performance - As of January 13, Pulaike's stock price rose by 2.00% to 13.23 CNY per share, with a trading volume of 46.33 million CNY and a turnover rate of 1.02% [1] - The stock has increased by 3.93% over the last five trading days and 2.40% over the last twenty days, while it has decreased by 4.68% over the last sixty days [2] Group 2: Company Overview - Pulaike Bioengineering Co., Ltd. was established on June 22, 2002, and went public on May 18, 2015. The company is primarily engaged in the research, production, and sales of veterinary biological products, chemical drugs, and traditional Chinese veterinary medicine [2] - The revenue composition of Pulaike includes poultry vaccines and antibodies (41.19%), pig vaccines (32.25%), chemical drugs (21.37%), functional health products (1.79%), pet vaccines (1.38%), and other income sources [2] Group 3: Financial Performance - For the period from January to September 2025, Pulaike achieved an operating income of 823 million CNY, representing a year-on-year growth of 8.04%. The net profit attributable to shareholders was 157 million CNY, reflecting a significant increase of 47.86% [2] - Since its A-share listing, Pulaike has distributed a total of 1.125 billion CNY in dividends, with 568 million CNY distributed over the past three years [3] Group 4: Shareholder Information - As of September 30, 2025, Pulaike had 16,700 shareholders, a decrease of 7.26% from the previous period, with an average of 20,739 circulating shares per shareholder, an increase of 7.83% [2] - Among the top ten circulating shareholders, the Guotai Zhongzheng Livestock Breeding ETF ranks as the sixth largest, holding 5.4716 million shares, an increase of 2.0217 million shares from the previous period [3]

Investment Rating - The report maintains a "Recommendation" rating for the animal health industry, indicating an expectation of the industry index outperforming the benchmark index by more than 5% in the next 3-6 months [3][80]. Core Insights - In November, the majority of vaccine products saw a year-on-year decline in batch approvals, with only the diarrhea vaccine showing a positive growth of +25.8%. Other vaccines, such as foot-and-mouth disease and pseudorabies vaccines, experienced declines ranging from -4.3% to -66.7% [8][9]. - The Veterinary Product Index (VPI) for raw materials has shown a continuous decline for two consecutive months, with a current index of 67.23, down 1.1% from the end of November. However, it is still up 2.1% year-on-year [51][55]. - The report highlights a significant differentiation in company performance within the industry, with successful companies demonstrating innovation in products, marketing, and capital operations [69][71]. Summary by Sections Vaccine Batch Approvals - In November, most vaccine products saw a decline in batch approvals compared to the previous year, with notable decreases in various pig vaccines. The only exception was the diarrhea vaccine, which increased by +25.8% [8][9]. - Cumulatively from January to November, several vaccine types, including the circular virus vaccine and the diarrhea vaccine, showed positive growth, with the circular virus vaccine increasing by +14.8% [9][10]. Veterinary Raw Material Prices - The VPI index has decreased for two consecutive months, with a current value of 67.23, reflecting a 1.1% drop from November's end. The prices of various raw materials, such as tylosin and florfenicol, have also seen declines [51][55]. - The report notes that the market sentiment for veterinary raw materials is cooling due to low demand and a lack of strong market support, leading to a weak operational state expected in the short term [55][69]. Investment Recommendations - The report suggests focusing on undervalued companies with improvement logic, highlighting that companies with innovative capabilities are likely to perform better in the current market environment [69][71]. - Specific companies recommended for attention include Zhongmu Co., Ltd., Reap Bio, Kexin Bio, and others, which are expected to benefit from the ongoing market dynamics [71].

Core Viewpoint - The company, Pulaike, plans to acquire a 4.04% stake in Zhongpu Biological from CITIC Agriculture, which will make Pulaike the controlling shareholder of Zhongpu Biological, a company currently facing continuous losses in the production of foot-and-mouth disease vaccines [1][9]. Company Overview - Zhongpu Biological, formerly known as Baoshan Biological Pharmaceutical Factory, specializes in the research, production, and technical services of foot-and-mouth disease vaccines. It has been in a loss-making state due to declining industry conditions and overcapacity [1][10]. - Pulaike currently holds a 46.97% stake in Zhongpu Biological, while CITIC Agriculture holds 4.04%. After the acquisition, Pulaike's stake will increase to 51.01%, surpassing the current largest shareholder, Zhongmu Co., Ltd. [1][10]. Financial Performance - Zhongpu Biological is projected to generate revenue of 37.01 million yuan in 2024, with a loss of 26.21 million yuan. In the first half of 2025, it is expected to achieve revenue of 18.85 million yuan, with a loss of 18.24 million yuan [2][10]. - Pulaike's revenue for 2024 is expected to decline by 16.77% to 1.043 billion yuan, with a net profit drop of 46.82% to 92.81 million yuan. The gross margin has decreased by 4.32 percentage points, and the net margin has fallen by 13.32 percentage points to 8.9% [4][13]. Industry Challenges - The animal health industry is facing challenges due to a decline in market conditions and overcapacity, with the number of manufacturers producing foot-and-mouth disease vaccines increasing from 7 to 10, leading to an estimated total capacity exceeding 13 billion milliliters per year [2][11]. - The utilization rate of vaccine manufacturers is low, with some companies reporting as low as 20.83% utilization [2][11]. Operational Issues - Pulaike's core business of pig vaccines has been under pressure, with revenue from this segment declining by 22.6% to 336 million yuan in 2024, despite having a gross margin of 83.89% [4][13]. - The company has invested heavily in new production facilities, resulting in a significant increase in depreciation expenses, which rose by 20.65% in 2024 [5][14]. Recent Developments - In the first three quarters of the year, Pulaike's revenue grew by 8.04% to 823 million yuan, and net profit increased by 47.86% to 157 million yuan. However, the growth in net profit is attributed to cost-cutting measures rather than revenue growth [6][15]. - Despite some recovery in new business segments, the overall revenue has started to decline, with a 5.39% drop in the third quarter [7][16]. Accounts Receivable Concerns - As of the end of the third quarter, Pulaike's accounts receivable reached 335 million yuan, accounting for 41% of its revenue, indicating potential cash flow issues [7][16].

Core Insights - China's agricultural technology innovation has made significant progress, with the contribution rate of agricultural technology advancement reaching 63.2% and the comprehensive mechanization rate of crop farming exceeding 75% [2][3] - The Ministry of Agriculture and Rural Affairs emphasizes the need to cultivate leading agricultural technology enterprises and strengthen their role in innovation [2][5] Group 1: Agricultural Technology Innovation - The structural contradiction of "many papers and patents, but few industrial transformations" in agricultural technology innovation has been a long-standing issue [3] - The Ministry of Agriculture and Rural Affairs has initiated a program to support enterprises in taking a leading role in agricultural technology innovation, encouraging them to participate in decision-making and major projects [3][5] - A database of agricultural technology enterprises has been established, currently including over 2,600 companies across five major fields: seed industry, agricultural machinery, planting and breeding, agricultural inputs, and food processing [4] Group 2: Collaboration and Integration - A number of innovation alliances led by technology enterprises have been established to enhance the integration of production, education, and research [5] - Companies are collaborating with top universities and research institutes to address key challenges in agricultural technology, significantly improving production efficiency [5][6] - The participation of enterprises in major agricultural technology projects has reached 50% of total participants, indicating a strong collaborative effort [5] Group 3: Market-Driven Innovation - Companies like Boyuan Biotechnology are leveraging market insights to develop innovative solutions, significantly improving efficiency in genetic transformation and gene editing [6] - The agricultural machinery sector is experiencing a transformation towards high-end, intelligent, and green products, driven by companies like Zoomlion [7] - The innovation index of agricultural enterprises in China has shown steady growth over the past five years, reflecting increased investment in innovation [7] Group 4: Support Mechanisms - A comprehensive support system is being developed to enhance the innovation capabilities of agricultural enterprises, including financial support and talent cultivation [8][9] - Various banks are offering tailored financial products to address the funding challenges faced by agricultural technology companies [9] - Initiatives such as the "Agricultural Park Science and Technology Enterprise Loan" are being introduced to support the development of agricultural technology enterprises [9]

Core Viewpoint - The stock price of Pulaike has experienced fluctuations, with a recent decline of 2.03% and a year-to-date increase of 11.28% [1][2]. Company Overview - Pulaike Bioengineering Co., Ltd. is located in Luoyang, Henan Province, established on June 22, 2002, and listed on May 18, 2015. The company primarily engages in the research, production, and sales of veterinary biological products, chemical drugs, and traditional Chinese veterinary medicine [2]. - The revenue composition includes: poultry vaccines and antibodies (41.19%), pig vaccines (32.25%), chemical drugs (21.37%), functional health products (1.79%), pet vaccines (1.38%), and other income sources [2]. Financial Performance - For the period from January to September 2025, Pulaike achieved operating revenue of 823 million yuan, representing a year-on-year growth of 8.04%. The net profit attributable to the parent company was 157 million yuan, reflecting a significant increase of 47.86% [2]. - Cumulative cash dividends since the A-share listing amount to 1.125 billion yuan, with 568 million yuan distributed over the past three years [3]. Shareholder Information - As of September 30, 2025, the number of shareholders is 16,700, a decrease of 7.26% from the previous period. The average circulating shares per person increased by 7.83% to 20,739 shares [2]. - Among the top ten circulating shareholders, Guotai Zhongzheng Livestock Breeding ETF ranks sixth with 5.4716 million shares, an increase of 2.0217 million shares from the previous period. Hong Kong Central Clearing Limited is the eighth largest shareholder with 3.832 million shares, marking a new entry [3].

Core Viewpoint - On November 20, 2023, the stock of Pulaike experienced a decline of 0.58%, with a trading volume of 43.79 million yuan, indicating a negative trend in market performance [1] Financing Summary - On the same day, Pulaike had a financing buy-in amount of 4.09 million yuan and a financing repayment of 12.67 million yuan, resulting in a net financing outflow of 8.58 million yuan [1] - As of November 20, the total financing and securities lending balance for Pulaike was 135 million yuan, which is 2.82% of its circulating market value, indicating a low financing balance compared to the past year [1] - The company repaid 100 shares of securities lending and sold 700 shares, with a selling amount of 9,674 yuan, while the remaining securities lending volume was 25,700 shares, with a balance of 355,200 yuan, which is above the 50th percentile of the past year [1] Company Overview - Pulaike Bioengineering Co., Ltd. was established on June 22, 2002, and listed on May 18, 2015, primarily engaged in the research, production, and sales of veterinary biological products, chemical drugs, and traditional Chinese veterinary medicine [2] - The revenue composition includes poultry vaccines and antibodies (41.19%), pig vaccines (32.25%), chemical drugs (21.37%), functional health products (1.79%), pet vaccines (1.38%), and other income sources [2] - As of September 30, 2023, the number of shareholders was 16,700, a decrease of 7.26%, while the average circulating shares per person increased by 7.83% to 20,739 shares [2] Financial Performance - For the period from January to September 2023, Pulaike achieved an operating income of 823 million yuan, representing a year-on-year growth of 8.04%, and a net profit attributable to shareholders of 157 million yuan, reflecting a significant increase of 47.86% [2] Dividend Information - Since its A-share listing, Pulaike has distributed a total of 1.125 billion yuan in dividends, with 568 million yuan distributed over the past three years [3] Institutional Holdings - As of September 30, 2023, the sixth largest circulating shareholder was the Guotai Zhongzheng Livestock Breeding ETF, holding 5.4716 million shares, an increase of 2.0217 million shares from the previous period [3] - The Hong Kong Central Clearing Limited was the eighth largest circulating shareholder, holding 3.832 million shares as a new shareholder [3]

Core Viewpoint - TianKang Pharmaceutical Co., Ltd. continues to face declining performance in the first three quarters of the year, with high accounts receivable and low capacity utilization, raising concerns from regulatory authorities regarding its expansion plans [1] Financial Performance - Revenue and net profit have declined for two consecutive years, with revenues of 1 billion yuan, 1.055 billion yuan, and 1.052 billion yuan from 2022 to 2024, and net profits of 204 million yuan, 165 million yuan, and 153 million yuan during the same period, reflecting year-on-year declines of 18.36% and 11.20% respectively [3] - For the first nine months of 2025, the company reported a year-on-year revenue decline of 20.49% and a net profit decline of 42.44%, while comparable companies in the industry saw average revenue growth of 1.60% and net profit growth of 49.06% [4] Accounts Receivable - The company's accounts receivable at the end of the reporting periods were 338 million yuan, 377 million yuan, and 364 million yuan, accounting for 10.40%, 10.70%, and 10.95% of total assets respectively [7] - As of June 2025, accounts receivable stood at 482 million yuan, with 72.32% from government procurement clients, and overdue amounts from direct sales and distribution clients totaling 42.81 million yuan [7] Capacity Utilization and Expansion Plans - The company plans to raise 527 million yuan for various projects, including 128 million yuan for the expansion of veterinary vaccine production and 105 million yuan for the renovation of brucellosis vaccine production [9] - The current production capacity for brucellosis vaccine is 150 million doses, with capacity utilization rates of 36.02%, 43.72%, 44.44%, and 34.61% over the reporting period [11] - Regulatory authorities have questioned the necessity and rationale for expanding production given the low overall capacity utilization and have requested further analysis of market demand for the new capacity [11][12]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown a steady growth in revenue and net profit, with Q1-Q3 2025 revenue at 823 million yuan (up 8.04% year-on-year) and net profit at 157 million yuan (up 47.86% year-on-year). The Q3 revenue was 264 million yuan (down 5.39% year-on-year), while net profit was 41 million yuan (up 26.69% year-on-year). The forecast for net profit from 2025 to 2027 is 205 million, 233 million, and 281 million yuan respectively, with corresponding EPS of 0.59, 0.67, and 0.81 yuan, leading to a PE ratio of 23.3, 20.5, and 17.0 times [3][4][5] Financial Performance Summary - For Q1-Q3 2025, the company's revenue from biological products was 589 million yuan (up 3.88% year-on-year), with pig-related revenue at 203 million yuan (down 19.67% year-on-year) and poultry-related revenue at 369 million yuan (up 22.71% year-on-year). The pharmaceutical segment generated 188 million yuan (up 19.91% year-on-year), with pet-related revenue at 15 million yuan (up 39.73% year-on-year) [4] - The gross margin for Q1-Q3 2025 was 60.46% (down 2.69 percentage points year-on-year), while the net margin improved to 19.09% (up 5.14 percentage points year-on-year). The expense ratio decreased to 31.24% (down 7.16 percentage points), with sales, management, and financial expense ratios at 22.39%, 8.92%, and -0.07% respectively [5] - R&D expenses for Q1-Q3 2025 reached 67 million yuan, with new veterinary drug registrations continuing to support innovation [5] Valuation Metrics - The company's total market capitalization is 4.776 billion yuan, with a current stock price of 13.80 yuan. The stock has a 52-week high of 15.79 yuan and a low of 11.28 yuan [1] - The projected revenue for 2025 is 1.216 billion yuan, with a year-on-year growth of 16.7%. The net profit for 2025 is expected to be 205 million yuan, reflecting a significant recovery from the previous year's decline [7][9]

Core Viewpoint - TianKang Pharmaceutical Co., Ltd. is undergoing a review process for its IPO application on the Beijing Stock Exchange, addressing inquiries related to its R&D model, technical independence, performance decline risks, and industry policy impacts [1] Group 1: Company Overview - TianKang Pharmaceutical specializes in the R&D, production, sales, and technical transfer of veterinary biological products, including vaccines for pigs, ruminants, poultry, and diagnostic reagents [1] - The company is controlled by TianKang Biology, which holds 58.94% of the shares, while the Xinjiang Production and Construction Corps holds an additional 68.94% of the total shares [1] Group 2: Financial Performance - Revenue for the years 2022 to 2024 was reported as 1 billion, 1.055 billion, and 1.051 billion yuan, respectively, with net profits declining from 197 million to 143 million yuan, reflecting year-on-year decreases of 18.36% and 11.20% for 2023 and 2024 [1] - Gross profit margins decreased from 63.83% in 2022 to 61.56% in 2024 [1] Group 3: Sales Model and Revenue Sources - The sales model consists of government procurement and market-based sales, with government procurement revenue of 564 million, 553 million, 520 million, and 268 million yuan from 2022 to the first half of 2025, accounting for 56.42%, 52.46%, 49.43%, and 52.96% of total revenue, respectively [2] - The company noted that while overall revenue remained stable, net profit and gross margins experienced declines due to intense competition in the pig vaccine market and fluctuations in sales of ruminant vaccines [2] Group 4: Accounts Receivable and Bad Debt Provisions - Accounts receivable at the end of each reporting period were 381 million, 450 million, and 452 million yuan, representing 38.14%, 42.70%, and 42.98% of revenue, respectively [3] - The majority of accounts receivable were from government procurement clients, which typically have longer payment cycles due to local fiscal conditions [4] Group 5: IPO Fundraising and Project Allocation - The company aims to raise 527 million yuan through its IPO, with allocations for various projects including 128 million for vaccine R&D and production expansion, 105 million for brucellosis vaccine upgrades, and 76 million for a zoonotic disease vaccine research center [4][5] Group 6: Production Capacity and Utilization - The company reported stable increases in live vaccine capacity utilization from 2022 to 2024, while inactivated vaccine utilization remained stable, with a noted decrease in the first half of 2025 due to competitive pressures [6][7] - The company’s production capacity for inactivated vaccines is high due to historical design considerations, leading to lower utilization rates as market demands shift [7]

Core Viewpoint - On September 25, 2023, the stock of Pulaike experienced a decline of 0.73%, with a trading volume of 43.54 million yuan, indicating a relatively stable market performance despite the slight drop [1]. Financing Summary - On the same day, Pulaike had a financing buy-in amount of 3.45 million yuan and a financing repayment of 3.77 million yuan, resulting in a net financing outflow of 321,000 yuan [1]. - As of September 25, the total financing and securities lending balance for Pulaike was 151 million yuan, with the financing balance accounting for 3.22% of the circulating market value, which is above the 50th percentile level over the past year, indicating a high level of financing activity [1]. - In terms of securities lending, Pulaike repaid 5,700 shares and sold 600 shares on September 25, with the selling amount calculated at 8,124 yuan, while the remaining securities lending balance was 14,350 yuan, which is below the 20th percentile level over the past year, indicating a low level of securities lending activity [1]. Company Overview - Pulaike Bioengineering Co., Ltd. was established on June 22, 2002, and listed on May 18, 2015. The company primarily engages in the research, production, sales, and related technology transfer of veterinary biological products, chemical drugs, and traditional veterinary medicine [2]. - The revenue composition of Pulaike includes poultry vaccines and antibodies (41.19%), pig vaccines (32.25%), chemical drugs (21.37%), functional health products (1.79%), pet vaccines (1.38%), and other income sources [2]. - As of June 30, 2023, Pulaike had 18,000 shareholders, an increase of 4.27% from the previous period, with an average of 19,234 circulating shares per person, a decrease of 4.09% [2]. Financial Performance - For the first half of 2025, Pulaike achieved an operating income of 559 million yuan, representing a year-on-year growth of 15.79%, and a net profit attributable to shareholders of 116 million yuan, reflecting a significant year-on-year increase of 57.12% [2]. Dividend Information - Since its A-share listing, Pulaike has distributed a total of 1.057 billion yuan in dividends, with 500 million yuan distributed over the past three years [3]. Institutional Holdings - As of June 30, 2023, the seventh largest circulating shareholder of Pulaike was the Guotai Zhongzheng Livestock Breeding ETF (159865), holding 3.4499 million shares, which is an increase of 141,400 shares compared to the previous period [3].