Core Viewpoint - The report from Dongfang Securities indicates that Huayuan Bio achieved a net profit attributable to shareholders of 162 million yuan in the first half of the year, representing a year-on-year increase of 13.67%, with a non-recurring net profit of 150 million yuan, up 37.36% year-on-year, primarily due to effective cost control [1] Financial Performance - The company's performance is closely linked to vitamin prices, which saw a rapid increase starting from the second half of last year, although there was a slight decline in vitamin prices in the latter half of 2025 [1] - Despite the stable growth in revenue expected for the year, the profit performance remains promising due to cost control and business structure [1] Strategic Development - The "one vertical and one horizontal" strategy is showing positive effects, indicating a favorable long-term development outlook for the company [1] - The company is the only global producer with a full industrial chain for VD3, holding a 70% market share in NF-grade cholesterol, the only legal raw material for VD3 production [1] Cost and Margin Analysis - In the context of declining VD3 prices, the company maintains a cost advantage, with a gross margin of 62.99% for vitamin products in the first half of 2025, an increase of 8.12 percentage points year-on-year [1] Production Capacity and Future Projects - The annual production project for 6,000 tons of VA powder has been completed, while projects for 5,000 tons of VB6 and 200 tons of biotin are in trial production preparation [1] - Other vitamin products are expected to contribute to performance growth in the near future [1] Drug Development Pipeline - The company currently has seven products under review and five in research, with the potential to re-enter an upward trajectory following the elimination of the impact from centralized procurement [1] Valuation - Based on comparable companies, a target price of 18.90 yuan is set for the company, corresponding to a 30 times price-to-earnings ratio for 2025, maintaining a "buy" rating [1]

Group 1 - The company Garden Biologics (300401.SZ) is a major producer of lanolin cholesterol and aims to continuously optimize its production processes and technology to enhance its competitive advantage [2] - The company has scheduled to disclose its semi-annual report for 2025 on August 16, 2025, which investors are encouraged to monitor for further insights [2]

Core Viewpoint - The global cholesterol market is projected to reach USD 100 million by 2031, with a compound annual growth rate (CAGR) of 4.8% in the coming years [1]. Market Overview - The cholesterol market is primarily driven by its applications in pharmaceuticals, animal feed, and cosmetics, with the pharmaceutical sector being the largest downstream market, accounting for approximately 62.1% of the demand [10][19]. - The NF grade cholesterol dominates the market, holding about 71.3% of the market share [8]. Key Players - Major global cholesterol producers include Zhejiang Huayuan, Dishman, Nippon Fine Chemical, Nanjing Enkai Chemical, and Anhui Tianqi, with the top four manufacturers holding around 86.0% of the market share in 2024 [6][21]. Market Drivers - Strict regulatory standards in pharmaceuticals, animal feed, and cosmetics are influencing the cholesterol market, driving innovation and quality improvements [15]. - The trend towards personalized nutrition and skincare solutions is creating new opportunities for cholesterol applications [16]. - The demand for cholesterol is significantly increasing in emerging economies, particularly in the Asia-Pacific region, driven by urbanization and rising disposable incomes [16]. Market Challenges - The reliance on animal-derived ingredients poses ethical and religious challenges for certain consumer groups, limiting the market [17]. - The negative connotation associated with cholesterol in consumer perception may hinder its application in cosmetics and health products [17]. - The production of cholesterol is sensitive to supply chain disruptions, particularly in animal-derived cholesterol, which can affect pricing and availability [18]. Industry Trends - In the pharmaceutical industry, cholesterol plays a critical role in lipid drug delivery systems, enhancing the bioavailability of active pharmaceutical ingredients [19]. - The increasing demand for high-quality animal products and focus on animal welfare are driving cholesterol's application in animal feed [19]. - In the cosmetics sector, cholesterol is valued for its skin and hair care properties, being widely used in moisturizers and hair treatments [19][20]. Conclusion - The cholesterol market is poised for growth, driven by regulatory compliance, emerging market demand, and evolving consumer preferences towards natural and sustainable products [20].