Investment Rating - The investment rating for Dong'e Ejiao is maintained as "Buy" [6][7]. Core Views - The company's performance in the first half of 2025 met expectations, with revenue of 3.051 billion RMB (up 11.02% year-on-year) and net profit attributable to shareholders of 818 million RMB (up 10.74% year-on-year) [6]. - The company is expected to achieve sustainable high-quality growth throughout the year, supported by strong brand power and marketing systems [6]. - The gross profit margin remains stable, and profit growth is anticipated to outpace revenue growth due to cost reduction and efficiency improvements [6]. - A mid-term dividend plan has been implemented, with a cash dividend of 12.69 RMB per 10 shares, totaling approximately 817 million RMB, which represents 99.94% of the net profit for the first half of 2025 [6]. - The forecast for net profit attributable to shareholders for 2025-2027 is 1.896 billion RMB, 2.273 billion RMB, and 2.718 billion RMB, respectively, with corresponding EPS of 2.94 RMB, 3.53 RMB, and 4.22 RMB [6][7]. Financial Summary - Revenue projections for 2024, 2025E, 2026E, and 2027E are 5.921 billion RMB, 6.820 billion RMB, 7.808 billion RMB, and 8.899 billion RMB, reflecting growth rates of 25.57%, 15.20%, 14.48%, and 13.97% respectively [4]. - Net profit attributable to shareholders is projected to grow from 1.557 billion RMB in 2024 to 2.718 billion RMB in 2027, with growth rates of 35.29%, 21.75%, 19.87%, and 19.60% [4][6]. - The company’s comprehensive gross profit margin for the first half of 2025 was 73.13%, with a slight year-on-year decline of 0.41 percentage points [6].

Investment Rating - The investment rating for Dong'e Ejiao is maintained at "Buy" [1] Core Views - The company's operating performance is steadily improving, with significant cash flow indicators showing improvement. For H1 2025, revenue reached 3.051 billion yuan, a year-on-year increase of 11.02%, and net profit attributable to shareholders was 818 million yuan, up 10.74% [4][5] - The report highlights the company's long-term development potential, particularly in deepening its focus on the Ejiao category, men's health products, and industry chain layout [4][5] Financial Performance Summary - In H1 2025, the company's revenue from Ejiao and related products was 2.845 billion yuan, growing by 11.50%, with a gross margin of 74.83% [5] - The net cash flow from operating activities in Q2 2025 was 1.270 billion yuan, showing significant improvement compared to Q1 2025, primarily due to a decrease in accounts receivable [5] - The company has adjusted its profit forecasts for 2025-2027, expecting net profits of 1.787 billion yuan, 2.105 billion yuan, and 2.474 billion yuan respectively [4][5] Research and Development Strategy - The company is enhancing its research platform to support technological innovation, implementing a strategy that includes establishing a national engineering technology research center for gelatin-based traditional Chinese medicine [6] - The strategy focuses on creating high grounds for raw material cultivation, traditional Chinese medicine research, and health consumer product development [6] Financial Summary and Valuation Metrics - For 2025, the expected earnings per share (EPS) is projected at 2.78 yuan, with a price-to-earnings (P/E) ratio of 18.4 times [8] - The company's gross margin is expected to be 73.0% in 2025, with a net margin of 26.7% [8][11] - The report provides a detailed financial forecast, indicating a steady growth trajectory in revenue and profit margins over the next few years [10]