Investment Rating - The report maintains a "Strong Buy" rating for Jinhe Industrial, expecting it to outperform the benchmark index by over 20% in the next six months [17]. Core Views - Jinhe Industrial's revenue for the first half of 2025 was 2.444 billion yuan, a year-on-year decrease of 3.73%, while the net profit attributable to shareholders increased by 35.29% to 334 million yuan [1]. - The report highlights improvements in the profitability of sweeteners and growth potential in the semiconductor and synthetic biology sectors [1][7]. - The company is expected to recover from a decline in export volumes of sweeteners, with price increases anticipated due to industry-wide price stabilization efforts [7]. Financial Summary - For 2025, the projected total revenue is 5.484 billion yuan, with a year-on-year growth rate of 3.4% [3]. - The net profit attributable to shareholders is forecasted to be 809 million yuan in 2025, reflecting a significant increase of 45.3% compared to 2024 [3]. - The earnings per share (EPS) is expected to rise from 0.98 yuan in 2024 to 1.42 yuan in 2025 [3]. Segment Analysis - The food additives segment reported revenue of 1.175 billion yuan in the first half of 2025, down 12.12% year-on-year, but with a gross margin increase of 18.10 percentage points to 45.20% [7]. - The basic chemicals segment achieved revenue of 1.055 billion yuan, up 11.31% year-on-year, although the gross margin decreased by 6.82 percentage points to 3.56% [7]. - The report notes a decline in export volumes for sweeteners, particularly sucralose and acesulfame, due to accumulated overseas inventory, but anticipates recovery as inventory levels decrease [7]. Growth Opportunities - Jinhe Industrial has successfully launched an 80,000-ton electronic-grade hydrogen peroxide project and is expanding into various wet electronic chemicals, which is expected to open new growth avenues [7]. - Breakthroughs in the synthesis of high-efficiency steviol glycosides and the successful market introduction of new products are set to enhance the product line in the food additives segment [7].

Core Viewpoint - The company has established an innovative platform in synthetic biology, focusing on core technologies such as strain modification, fermentation process optimization, and product separation and purification [1] Company Developments - The company is engaged in research and development of non-grain bio-based materials, food ingredients, and terpene derivatives, leveraging its synthetic biology base [1] - High-value aroma products, such as Valencia orange oil, have completed pilot-scale process validation and are currently exploring industrial production solutions [1] - The company aims to enhance cost reduction and efficiency improvements while consolidating its technological advantages and market positioning in the synthetic biology sector [1]

Core Viewpoint - The company has made significant progress in the field of terpene biosynthesis, establishing an innovative platform for synthetic biology and focusing on high-value products like Valencia orange oil [2] Group 1: Research and Development - The company has built a synthetic biology innovation platform through independent research and collaboration with academic and research institutions [2] - Key technologies mastered include strain modification, fermentation process optimization, and product separation and purification [2] - The company is developing non-grain bio-based materials, food ingredients, and daily chemical fragrances derived from terpenes [2] Group 2: Project Status - The high-value fragrance products, such as Valencia orange oil, have completed pilot-scale process validation [2] - The company is exploring industrial production solutions and focusing on cost reduction and efficiency improvement [2] - The company aims to strengthen its technological advantages and market presence in the field of biosynthesis [2]