Company Overview - Kexing Bio-Pharmaceutical Co., Ltd. is an innovative international biopharmaceutical company focused on the research, development, production, and sales of recombinant protein drugs and micro-ecological preparations, targeting areas such as antiviral, oncology, immunology, hematology, and degenerative diseases [4][9] - The company has established a national marketing network covering approximately 8,000 hospitals and has achieved market access and sales in over 70 countries, including the EU, Brazil, and Egypt [4][8] Financial Performance - For the first half of 2025, the company reported a revenue of approximately 700.46 million yuan, a decrease of 7.82% compared to the same period last year [2][3] - The total profit reached approximately 84.13 million yuan, representing a significant increase of 100.40% year-on-year [2][3] - The net profit attributable to shareholders was approximately 80.34 million yuan, a remarkable increase of 576.45% compared to the previous year [2][3] Key Financial Indicators - Basic earnings per share for the first half of 2025 were 0.41 yuan, up 578.63% from the previous year [3] - The weighted average return on equity was 4.80%, compared to 0.73% in the same period last year [3] - Research and development expenses accounted for 13.70% of revenue, an increase from 11.52% year-on-year [3] Business Model and Operations - The company employs a "sales-driven production and demand-based procurement" model, ensuring production aligns with sales forecasts [7][8] - Kexing Bio has a complete and controllable R&D, procurement, production, and marketing system, allowing for independent operations [7][8] Industry Context - The biopharmaceutical industry in China is undergoing significant transformation, with a shift towards innovation-driven growth supported by government policies and technological advancements [9] - The overall pharmaceutical manufacturing industry has seen a slight decline in revenue, but is expected to stabilize and recover as innovation policies take effect [9]

Investment Rating - The report maintains a "Buy" rating for the company, expecting the stock price to outperform the industry index by more than 15% in the next six months [4][17]. Core Insights - The company is experiencing rapid growth in overseas revenue, with a projected 61.96% year-on-year increase in overseas sales to approximately 224.37 million yuan in 2024, primarily driven by the sales growth of albumin paclitaxel in the EU [2]. - The company is actively pursuing an "internationalization" strategy, enhancing its overseas marketing structure and focusing on key disease areas, which has established it as a model for the domestic pharmaceutical industry's expansion abroad [2]. - The company has a strong pipeline of innovative drugs, particularly in oncology, immunology, and degenerative diseases, with several projects showing promising preclinical results and progressing towards clinical trials [3]. Financial Summary - The company is projected to achieve a revenue of 1.407 billion yuan in 2024, representing a year-on-year growth of 11.7%, and is expected to turn a profit with a net profit of 31 million yuan [1]. - The company's revenue is expected to grow significantly over the next few years, reaching 2.701 billion yuan by 2027, with a compound annual growth rate (CAGR) of 19.5% from 2024 to 2027 [1]. - The return on equity (ROE) is expected to improve from -12.0% in 2023 to 14.1% by 2027, indicating a recovery in profitability [1]. Market Position - The company has established a strong presence in over 40 emerging market countries, covering regions such as Central and South America, Southeast Asia, and the Middle East and North Africa [2]. - The company maintains leading market shares in several domestic products, including "Sai Ruojin" in the short-acting interferon market and "Lai Ting" in the infliximab market [8].