Core Viewpoint - The strong performance of Iwu Biological's stock is driven by its impressive half-year report and a robust growth strategy in the allergy treatment sector [1][2] Financial Performance - Iwu Biological reported a revenue increase to 484 million yuan, with a net profit of 177 million yuan, and a non-recurring net profit growth rate of 21.97%, indicating double-digit profit growth [1] - The company's gross margin rose to 95.37%, and operating cash flow surged by 96.08% year-on-year, reflecting significant improvement in profitability [1] Product Development - The company is advancing seven research projects, including the upgraded "House Dust Mite Membrane Agent" which entered Phase I clinical trials in March 2025, and the "Dermatitis Diagnostic Patch 02" which received clinical trial approval in May [2] - Iwu Biological holds 20 domestic and international invention patents and invested 61.68 million yuan in R&D, accounting for 12.74% of its revenue, with a research team of over 260 members [2] Market Strategy - The company employs a "scholarly team promotion + commercial distribution" model to enhance awareness of sublingual desensitization therapy among doctors and patients [2] - Iwu Biological has strategically positioned itself in cutting-edge fields such as stem cell therapy and antibiotic resistance, ensuring long-term growth potential [2] Industry Context - The increase in allergy disease prevalence and the rising penetration of desensitization treatments provide a favorable backdrop for Iwu Biological, which is the only company in China with two sublingual desensitization formulations [2]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [3] Core Views - The company reported a revenue of 925 million yuan for 2024, representing a year-on-year growth of 9.1%, and a net profit attributable to shareholders of 317.8 million yuan, up 2.5% year-on-year [5] - The company is expected to achieve revenue of 1,033 million yuan in 2025, with a growth rate of 11.6%, and a net profit of 351.9 million yuan, reflecting a growth of 10.7% [5] - The company maintains a strong market position with over 80% market share in the domestic allergy treatment sector, and its product pipeline continues to expand [5] Financial Performance Summary - For 2024, the company achieved a gross margin of 95.16% and a stable expense ratio, with sales expense ratio at 39.06% [5] - The company’s R&D expenses for 2024 were 120 million yuan, accounting for 12.95% of revenue [5] - The earnings per share (EPS) for 2024 is projected to be 0.61 yuan, with a P/E ratio of 34.5 [3][5] Revenue and Profit Forecast - The forecasted revenues for 2025-2027 are 1,033 million yuan, 1,171 million yuan, and 1,354 million yuan, respectively, with corresponding year-on-year growth rates of 11.6%, 13.3%, and 15.7% [5] - The net profit forecast for the same period is 351.9 million yuan, 394.0 million yuan, and 450.2 million yuan, with growth rates of 10.7%, 12.0%, and 14.3% [5] Product Pipeline and Market Expansion - The company has successfully expanded its product matrix, with new products such as "Skin Prick Test Solutions" receiving approval for market entry [5] - The company is actively promoting its products in northern markets, leading to significant sales increases, particularly for the Dust Mite Drops and Artemisia Pollen Drops [5]

Core Viewpoint - The company reported steady revenue growth and a continuous expansion of its core product matrix, with a positive outlook for future performance driven by increased market penetration and new product launches [1][2][4]. Financial Performance - In 2024, the company achieved operating revenue of 925 million yuan, a year-on-year increase of 9.10%, and a net profit attributable to shareholders of 318 million yuan, up 2.46% [1]. - For Q1 2025, the company reported operating revenue of 228 million yuan, a year-on-year increase of 5.65%, but a net profit decrease of 3.71% to 74 million yuan [1][2]. Product Performance - The company’s core products, particularly the dust mite drops, showed strong sales, generating 886 million yuan in 2024, a growth of 7.86% [2]. - The yellow flower pollen drops saw significant growth, with revenue reaching 27.01 million yuan in 2024, a year-on-year increase of 76.43%, driven by enhanced marketing efforts in northern markets [2]. - The skin prick solution also performed well, with revenue of 7.30 million yuan, reflecting a growth of 103.08% [2]. R&D and Product Pipeline - The company has expanded its product pipeline, with eight skin prick products approved for market launch and ongoing clinical trials for new drugs [2]. - The "house dust mite membrane agent" is entering Phase I clinical trials, while a new chemical drug is in Phase II [2]. Profitability and Cost Management - The overall gross margin remained stable at 95.16% in 2024 and 94.76% in Q1 2025 [3]. - The sales expense ratio increased to 39.06% in 2024 and 40.37% in Q1 2025, attributed to increased promotional activities [3]. - R&D expenses were 120 million yuan in 2024, reflecting a 6.85% increase, with a R&D expense ratio of 12.95% [3]. Future Outlook - Revenue projections for 2025-2027 are set at 1.033 billion, 1.171 billion, and 1.354 billion yuan, with expected growth rates of 11.6%, 13.3%, and 15.7% respectively [4]. - Net profit forecasts for the same period are 352 million, 394 million, and 450 million yuan, with growth rates of 10.7%, 12.0%, and 14.3% [4]. - The company maintains a leading market share of over 80% in the domestic allergy treatment market, with a strong outlook for continued growth [4].