Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a revenue of 6.272 billion yuan in H1 2025, a slight decrease of 0.17% year-on-year, while the net profit attributable to the parent company was 1.281 billion yuan, reflecting a growth of 9.40% year-on-year [4] - The company maintains a strong gross margin of 66.02% and a net profit margin of 24.73%, with significant improvements in net profit margin by 3.17 percentage points year-on-year [4] - The company is expected to continue its differentiated innovation strategy, with projected net profits of 2.276 billion yuan, 2.521 billion yuan, and 2.801 billion yuan for the years 2025, 2026, and 2027 respectively, leading to an EPS of 2.52 yuan, 2.79 yuan, and 3.10 yuan per share [4] Financial Performance Summary - In H1 2025, the company's sales expenses ratio was 27.69%, management expenses ratio was 4.77%, and R&D expenses ratio was 6.89% [4] - The company’s chemical preparations generated 3.270 billion yuan in revenue, with notable performance in digestive products (1.351 billion yuan, +3.87%) and psychiatric products (0.317 billion yuan, +6.89%) [5] - The company’s diversified product matrix is advancing rapidly, with several innovative drugs in the pipeline, including a long-acting formulation of Aripiprazole and a small nucleic acid drug targeting uric acid production [6] Financial Projections - The company is projected to have a revenue of 12.247 billion yuan in 2025, with a year-on-year growth of 3.7% [7] - The projected P/E ratios for 2025, 2026, and 2027 are 16.4, 14.8, and 13.3 respectively, indicating a favorable valuation trend [7]