Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown steady revenue growth with a year-on-year increase of 10.11% in H1 2025, achieving revenue of 375 million yuan. However, the net profit attributable to the parent company decreased by 7.12% year-on-year to 70.91 million yuan [4] - The company is actively developing high-value mouse strains and expanding its international presence, with production capacity in both domestic and overseas markets being ramped up [5][6] - The financial forecasts for 2025-2027 have been adjusted, with expected net profits of 133 million yuan, 162 million yuan, and 193 million yuan respectively, reflecting a positive outlook due to the company's strategic initiatives [4] Financial Performance Summary - In H1 2025, the company reported a revenue of 375 million yuan, with a year-on-year growth of 10.11%. The net profit attributable to the parent company was 70.91 million yuan, down 7.12% year-on-year. The non-recurring net profit was 62.93 million yuan, up 14.75% year-on-year [4] - For Q2 2025, the company achieved a revenue of 204 million yuan, representing a year-on-year increase of 11.27% and a quarter-on-quarter increase of 19.37%. The net profit attributable to the parent company was 40.93 million yuan, down 12.66% year-on-year but up 36.51% quarter-on-quarter [4] - The company’s earnings per share (EPS) for 2025-2027 are projected to be 0.32 yuan, 0.40 yuan, and 0.47 yuan respectively, with corresponding price-to-earnings (P/E) ratios of 56.1, 46.0, and 38.7 [4][7] Strategic Developments - The company has established a comprehensive portfolio of over 21,000 mouse strains, including 100 wild-type strains and 700 drug screening strains, with plans to complete the development of approximately 200 wild-type strains by the end of 2025 [5] - The domestic production capacity has reached approximately 280,000 cages, with utilization rates gradually increasing to full capacity. The new headquarters in San Diego, USA, has been operational since June 2025, integrating R&D, production, and experimental functions [5] - The business development (BD) team has expanded to nearly 120 members, serving around 2,100 clients, with significant growth in the overseas market, generating revenue of 67.12 million yuan in H1 2025 [6]