Investment Rating - The investment rating for Yunnan Baiyao is maintained as "Buy" [2][5] Core Views - The company's performance in the first three quarters of 2025 met expectations, with revenue of 30.654 billion yuan (up 2.47% year-on-year) and net profit attributable to shareholders of 4.777 billion yuan (up 10.41% year-on-year) [5] - The industrial segment showed strong growth, with industrial revenue reaching 11.582 billion yuan, an increase of 9.06 billion yuan year-on-year, reflecting an 8.48% growth rate [5] - The company is focusing on enhancing its brand in traditional Chinese medicine and expanding its market share in oral care and personal care products [5] - The gross profit margin improved to 30.06%, up 1.66 percentage points year-on-year, driven by a higher proportion of high-margin business [5] - The company plans to distribute a special dividend of 1.818 billion yuan, representing 50.05% of the net profit for the first half of 2025, indicating a strong commitment to shareholder returns [5] Financial Summary - Revenue projections for 2024 to 2027 are 40.033 billion yuan, 40.922 billion yuan, 42.319 billion yuan, and 43.675 billion yuan, respectively, with growth rates of 2.36%, 2.22%, 3.41%, and 3.20% [2][6] - Net profit attributable to shareholders is expected to grow from 4.749 billion yuan in 2024 to 6.278 billion yuan in 2027, with growth rates of 16.02%, 9.83%, 10.35%, and 9.06% [2][6] - Earnings per share (EPS) is projected to increase from 2.66 yuan in 2024 to 3.52 yuan in 2027 [2][6] - The company maintains a high dividend payout ratio, exceeding 90% from 2022 to 2024, with an expectation of continued high dividends in the future [5]