Investment Rating - The investment rating for Huabao International is "Buy" (maintained) [5][9] Core Views - The company has launched an equity incentive plan to strengthen confidence and is looking forward to opportunities in the HNB supply chain [1] - The company reported a revenue of 1.621 billion yuan for the first half of 2025, with a year-on-year growth of 2.5%, and a significant increase in net profit attributable to shareholders by 298% [1][5] - The company aims to accelerate international development and expand overseas markets, with potential merger and acquisition opportunities [4] Summary by Sections Equity Incentive Plan and H1 2025 Performance - The equity incentive plan includes 148 million stock options, accounting for 4.6% of the current total share capital, with an exercise price of HK$3.95 per share [1] - The performance for H1 2025 shows a revenue of 1.621 billion yuan, a gross margin of 43.4%, and a net profit attributable to shareholders of 118 million yuan [1] Downstream Demand - Tobacco production in H1 2025 reached 27.51 million boxes, showing a year-on-year increase of 0.8% [2] - The food and beverage sector saw a year-on-year increase in added value of 7.5% for agricultural and sideline food processing, and 6.3% for food manufacturing [2] Business Segmentation - Revenue from flavor and food ingredients was 596 million yuan, down 8.6%, while revenue from tobacco raw materials increased by 45.3% to 238 million yuan [3] - The company has completed the construction of a new tobacco leaf production base in Indonesia, with an annual capacity of 3,000 tons [3] Outlook for H2 2025 - The company plans to continue accelerating its international development and enhance supply chain management, with cash and financial assets totaling 6 billion yuan as of H1 2025 [4] Financial Forecast - Revenue projections for 2025-2027 are 3.598 billion yuan, 4.075 billion yuan, and 4.670 billion yuan, with year-on-year growth rates of 6.66%, 13.26%, and 14.60% respectively [5][10]

Core Viewpoint - Huabao International (00336) reported a revenue of 1.621 billion RMB for the six months ending June 30, 2025, reflecting a year-on-year growth of 2.5% [1] Financial Performance - The profit attributable to equity holders reached 118 million RMB, marking a significant year-on-year increase of 298.1% [1] - Basic earnings per share were reported at 3.66 cents [1] - The company proposed an interim dividend of 0.012 HKD per share and a special dividend of 0.032 HKD per share [1] Revenue Breakdown - The increase in revenue was primarily driven by rapid growth in the overseas business of tobacco-related new materials, with the tobacco raw materials segment's revenue increasing by 45.3% to 238 million RMB [1] - The flavor raw materials segment also saw a revenue increase of 7.6% to 405 million RMB due to gradual capacity release and the acquisition of new customers [1] - However, the revenue from the flavor and food ingredients segment decreased by 8.6% to 595.7 million RMB due to changes in market demand and intense competition, partially offsetting the overall revenue growth [1]

Core Viewpoint - Huabao International (00336) reported a revenue of 1.621 billion RMB for the six months ending June 30, 2025, reflecting a year-on-year growth of 2.5% [1] Revenue Breakdown - The increase in revenue was primarily driven by rapid growth in the overseas business of tobacco-related new materials, with the tobacco raw materials segment's revenue rising by 45.3% to 238 million RMB [1] - The flavor raw materials segment also saw a revenue increase of 7.6%, reaching 405 million RMB, due to gradual capacity release and the acquisition of new customers [1] - However, the revenue from the flavor and food ingredients segment decreased by 8.6% to 595.7 million RMB, offsetting some of the gains from other segments [1] Profitability - The profit attributable to equity holders was 118 million RMB, marking a significant year-on-year increase of 298.1% [1] - Basic earnings per share were reported at 3.66 cents [1] - The company proposed an interim dividend of 1.2 HKD cents per share and a special dividend of 3.2 HKD cents per share [1]