Group 1: Company Overview - The report focuses on Bio Co., Ltd. (600201), highlighting its potential breakthrough with the African Swine Fever vaccine, which is expected to reshape its competitive advantage and growth momentum [3][4]. - The recommendation logic emphasizes the company's strong R&D barriers, rich product pipeline, and the recent clinical approval of the ASF vaccine, which could become the main growth driver over the next 3-5 years [3][4]. Group 2: Financial Projections - Projected revenues for Bio Co., Ltd. from 2025 to 2027 are estimated at 1,603.76 million, 2,035.36 million, and 2,520.85 million yuan, with year-on-year growth rates of 27.74%, 26.91%, and 24.85% respectively [4]. - The net profit attributable to the parent company is forecasted to be 303.45 million, 397.65 million, and 491.31 million yuan for the same period, with growth rates of 178.44%, 31.04%, and 23.55% respectively [4]. Group 3: Catalysts and Drivers - Key catalysts include breakthroughs in the ASF vaccine development and advancements in the mRNA vaccine for feline infectious peritonitis [4]. - The driving factors for growth are the leading progress in ASF vaccine development, a solid position in foot-and-mouth disease, rapid expansion in the pet sector, and ongoing overseas market development [3][4]. Group 4: Market Position and Strategy - The company is expected to exceed performance expectations due to the clinical approval of the ASF vaccine, diversified product launches, and rapid overseas market expansion [3]. - The strategy includes leveraging marketing support, online channel development, and international market penetration to drive revenue growth [3].

Core Logic - The company has strong R&D barriers and a rich pipeline of new products, with the non-epidemic vaccine having received clinical approval, which could become the largest growth engine in the next 3-5 years if progress is smooth [1] Industry Dynamics - The animal health sector is expected to maintain a volume increase but price decrease trend due to weak recovery in the breeding industry and profit compression, with overall gross margins declining amid intense competition and product homogenization [2] Product Development - The company is a leader in the foot-and-mouth disease vaccine market, transitioning its core product logic to the subunit non-epidemic vaccine, which has a broad market potential. The market size is expected to reach 1.75 billion yuan in the first year and 3.5 billion yuan in the second year post-launch. The subunit non-epidemic vaccine is set to enter clinical trials in July 2025, with potential revenue contributions starting from late 2027 to early 2028 [3] Marketing Strategy - The company focuses on "big products + big clients," providing comprehensive solutions and building a multi-layered marketing system. Online and overseas market expansions are showing initial success, with pet direct sales increasing over fourfold year-on-year in the first half of 2025. The company has registered sales of foot-and-mouth products in countries like Pakistan and Vietnam, with plans for deeper market penetration in Mongolia and Central Asia [4] Financial Forecast - The company expects overall revenue of 1.604 billion, 2.035 billion, and 2.521 billion yuan for 2025-2027, with year-on-year growth rates of 27.74%, 26.91%, and 23.85%. The net profit attributable to shareholders is projected to be 304 million, 398 million, and 491 million yuan, with growth rates of 178.44%, 31.04%, and 23.55%, corresponding to P/E ratios of 64, 49, and 39 times [5]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - The report indicates that the pork price has slightly declined but remains supported by high slaughter volumes and increased breeding activity. The pre-Spring Festival stocking has not yet started, and downstream profits are still in need of recovery. The average price of live pigs as of January 9, 2026, is 12.58 CNY/kg, showing a week-on-week decrease of 0.09 CNY/kg and a year-on-year decrease of 3.36 CNY/kg. The industry gross white price difference is 3.85 CNY/kg, which has decreased by 0.13 CNY/kg week-on-week and 1.46 CNY/kg year-on-year, indicating potential for recovery as stocking begins [5][14]. Summary by Sections Weekly Observation - The report notes that the pre-Spring Festival stocking has not yet started, and downstream profits are still in need of recovery. The average price of live pigs is 12.58 CNY/kg, with a week-on-week decrease of 0.09 CNY/kg and a year-on-year decrease of 3.36 CNY/kg. The industry gross white price difference is 3.85 CNY/kg, indicating potential for recovery as stocking begins [5][14]. Market Performance - From January 5 to January 9, the agricultural sector underperformed the market by 2.84 percentage points. The Shanghai Composite Index rose by 3.82%, while the agricultural index increased by 0.98%. The fishery sector led the gains, with notable increases in stocks such as Dahu Co. (+17.83%), Zhongshui Fishery (+16.07%), and Biological Co. (+15.46%) [7][20][24]. Key News - The Ministry of Agriculture and Rural Affairs reported a 98% compliance rate in the national agricultural product quality safety monitoring for 2025. Additionally, the central reserve of frozen pork will initiate a two-way rotation with an outflow and storage volume of 17,800 tons each [6][26]. Price Tracking - As of January 9, 2026, the average price of live pigs is 12.63 CNY/kg, down 0.13 CNY/kg from the previous week. The average price of piglets is 20.39 CNY/kg, up 0.95 CNY/kg week-on-week. The average price of white strips of meat is 16.85 CNY/kg, showing a slight increase of 0.05 CNY/kg [8][28].

Core Viewpoint - The animal health sector experienced a rise of 1.55% on January 9, with significant contributions from leading stocks like Biological Shares, which surged by 4.76% [1]. Group 1: Market Performance - The Shanghai Composite Index closed at 4120.43, up by 0.92%, while the Shenzhen Component Index closed at 14120.15, up by 1.15% [1]. - The top-performing stock in the animal health sector was Biological Shares (600201), closing at 17.40 with a gain of 4.76% and a trading volume of 683,900 shares, amounting to a transaction value of 1.179 billion yuan [1]. Group 2: Stock Performance Summary - Other notable stocks included: - Shunlian Biological (688098) at 9.67, up by 1.90% with a trading volume of 64,900 shares [1]. - Zhongmu Shares (600195) at 8.10, up by 1.25% with a trading volume of 138,100 shares [1]. - Ruipu Biological (300119) at 19.90, up by 1.12% with a trading volume of 154,700 shares [1]. - Haili Biological (603718) at 6.48, up by 0.78% with a trading volume of 124,600 shares [1]. Group 3: Capital Flow Analysis - The animal health sector saw a net outflow of 27.3879 million yuan from institutional investors, while retail investors contributed a net inflow of 90.8993 million yuan [2]. - The capital flow for specific stocks showed: - Haili Biological had a net inflow of 10.2913 million yuan from institutional investors [3]. - Jinhe Biological experienced a net inflow of 2.8449 million yuan from institutional investors [3]. - *ST Green Kang (002868) had a net inflow of 1.8780 million yuan from institutional investors [3].

Core Viewpoint - The report from Kaiyuan Securities highlights that BioShares is a leading player in China's animal health sector, with a diverse range of over a hundred vaccines covering pigs, poultry, ruminants, and pets. The company is expected to see significant growth driven by its new vaccines, particularly the African swine fever vaccine, which is nearing market launch [1] Financial Projections - The company maintains its profit forecast for 2025 while raising the profit estimates for 2026 and 2027. The projected net profits for 2025, 2026, and 2027 are 188 million, 712 million, and 1.211 billion yuan respectively, with earnings per share (EPS) of 0.17, 0.64, and 1.09 yuan [1] - The previous profit forecasts for 2026 and 2027 were 352 million and 508 million yuan respectively [1] Valuation Metrics - The current price-to-earnings (PE) ratios for the company are projected to be 98.5, 25.9, and 15.3 for the years 2025, 2026, and 2027 respectively [1] Investment Rating - The company is expected to maintain strong growth momentum with the imminent global launch of its African swine fever vaccine, leading to a "buy" rating [1]

Group 1 - The stock price of Bio Co., Ltd. increased by 5.06% on January 9, reaching 17.45 CNY per share, with a trading volume of 918 million CNY and a turnover rate of 4.80%, resulting in a total market capitalization of 19.4 billion CNY [1] - Bio Co., Ltd. has experienced a continuous increase in stock price for five consecutive days, with a cumulative increase of 10.73% during this period [1] - The company, established on March 13, 1993, and listed on January 15, 1999, is primarily engaged in the research, production, and sales of veterinary biological products, with main business revenue composition being 94.42% from biopharmaceuticals, 3.18% from other income, and 2.40% from supplementary sources [1] Group 2 - E Fund's fund under management has a significant position in Bio Co., Ltd., with the E Fund CSI Modern Agriculture Theme ETF (562900) increasing its holdings by 19,600 shares in the third quarter, totaling 239,100 shares, which accounts for 2.79% of the fund's net value, ranking it as the eighth largest holding [2] - The estimated floating profit from the recent stock price increase is approximately 200,800 CNY, with a total floating profit of 385,000 CNY during the five-day increase [2] - The E Fund CSI Modern Agriculture Theme ETF (562900) was established on December 2, 2021, with a latest scale of 82.62 million CNY, and has reported a year-to-date return of 0.38%, ranking 5235 out of 5509 in its category [2]

Core Viewpoint - The significant upward revision of profit forecasts for Shenghua Co. (600201.SH) by Kaiyuan Securities reflects a strong confidence in the company's growth prospects, particularly driven by the development of the African swine fever vaccine [1][6]. Group 1: Profit Forecast Adjustments - In late October 2025, Kaiyuan Securities provided a cautious profit forecast for Shenghua Co. for 2025-2027, estimating net profits of 1.88 billion, 3.52 billion, and 5.08 billion respectively [2]. - By January 8, 2026, the profit forecast for 2026 was dramatically increased to 7.12 billion, nearly doubling the previous estimate, while the 2027 forecast rose by over 138% to 12.11 billion [2]. Group 2: Key Drivers of Growth - The major adjustment in profit forecasts is primarily attributed to the unexpected progress in the research and development of the African swine fever subunit vaccine, with Shenghua Co. being the first and only company in China approved for clinical trials [3]. - The vaccine is expected to create an incremental market size of approximately 84 billion in China, positioning Shenghua Co. as a significant beneficiary due to its first-mover advantage [3]. Group 3: Traditional Business Performance - Besides the potential of the African swine fever vaccine, Shenghua Co.'s traditional business is also showing steady growth, with a 50% year-on-year increase in sales of foot-and-mouth disease vaccines in the first three quarters of 2025 [4]. - Other vaccine products, including those for ruminants, poultry, and pets, are also experiencing strong growth, supported by a robust investment in R&D, which accounted for 13.51% of revenue in the first half of 2025 [4].

Group 1 - South Africa is experiencing the most severe foot-and-mouth disease outbreak in its history, with rapid virus transmission and strong infectivity, posing an unprecedented disaster for the livestock industry [1] - The outbreak began in April 2025 in KwaZulu-Natal province and has spread to other key agricultural areas, prompting the South African Department of Agriculture to procure vaccines for emergency vaccination of 930,000 animals [1] - The outbreak highlights the importance of global animal disease prevention and presents overseas market expansion opportunities for domestic animal health companies with technological advantages [1] Group 2 - The animal health industry has a tightly linked upstream and downstream, with upstream raw material drug companies providing essential support for vaccine production, while downstream demand from farming recovery and overseas epidemic prevention needs drive industry growth [2] - Companies like Reap Bio focus on veterinary biological products, including foot-and-mouth disease vaccines, covering multiple sectors such as pigs, poultry, and pets [3] - Bio Company is a leading domestic animal health enterprise with designated production qualifications for strong immunity foot-and-mouth disease vaccines, consistently ranking first in the industry for vaccine batch approvals [4]

Group 1: AI Chip Industry - The AI chip market in China is projected to grow from CNY 142.54 billion in 2024 to CNY 1,336.79 billion by 2029, driven by government support and technological advancements in the domestic AI industry [5][6]. - The domestic AI industry is categorized into three stages: the first focuses on self-sufficient AI computing, storage, and power chips; the second on chip manufacturing processes like wafer fabrication and packaging; and the third on foundational technologies such as materials and EDA [6][8]. - Key players in the AI chip market include Huawei, Cambricon, and Haiguang Information, with significant growth expected in AI storage and computing chips [6][7]. Group 2: Banking Sector - The banking sector is expected to see a steady growth of CNY 3.8 trillion in wealth management products by 2026, with a year-on-year increase of 11.46% [11]. - The demand for short-term wealth management products is rising, particularly non-current management products with a duration of less than one month, which are expected to yield annualized returns close to 3-year fixed deposit rates [12]. - Major banks like Citic Bank and Everbright Bank are recommended for their diversified product lines and strong research capabilities, while other banks such as SPDB and Bank of Beijing are also seen as beneficiaries [15]. Group 3: High-end Membrane Materials - The Chinese high-end membrane materials industry is poised for rapid growth due to geopolitical tensions and the shift of the global optoelectronic industry towards China, with a focus on breaking Japan's technological monopoly [19][20]. - Key domestic companies in this sector include Dongcai Technology and Jiemai Technology, which are expanding their production capacities and entering supply chains of major clients [20]. - The market for optical films and release films is characterized by high technical barriers, with significant opportunities for domestic manufacturers to capture market share from established foreign competitors [20][21]. Group 4: Semiconductor Equipment and Materials - The semiconductor materials and equipment sector is expected to accelerate its domestic capabilities due to increased geopolitical risks and supply chain security concerns, with a focus on self-sufficiency [29][30]. - Key areas for growth include photoresists and coating equipment, where domestic companies are beginning to establish a foothold in high-end markets [31][32]. - Beneficiaries in this sector include companies like Tongcheng New Materials and Changchuan Technology, which are positioned to capitalize on the growing demand for domestic semiconductor solutions [33]. Group 5: Animal Health Industry - The company is a leading player in the animal health sector, with a strong pipeline of vaccines, including the upcoming launch of a novel African swine fever vaccine, which is expected to significantly enhance profitability [34][36]. - The company has a robust R&D framework, with a focus on innovation and a diverse range of vaccine products, which positions it well for future growth [35]. - The anticipated market for the African swine fever vaccine could reach CNY 8.4 billion annually, providing a substantial growth opportunity for the company [36].

Core Viewpoint - Shanghai Jiakai Biological Co., Ltd. (referred to as "Jiakai Biological" or "the issuer") has responded to the first round of inquiries from the Beijing Stock Exchange regarding its IPO, addressing issues related to compliance of equity changes, stability of control, business model and product technology advancement, compliance of cosmetic raw material qualifications, product quality risks, sustainability of performance growth, capacity digestion ability, and high supplier concentration and fair pricing of procurement [1] Equity Changes and Control - The exchange focused on the compliance of the company's past equity changes, noting significant price differences in equity transfers in August 2022 and January 2024, questioning the rationale behind these differences and potential conflicts of interest [2] - Jiakai Biological explained that the price differences were due to internal adjustments by the same fund manager and variations in cooperation terms, asserting that the pricing was negotiated based on performance and development expectations, thus justifying the differences without any conflict of interest [2] - The company emphasized the stability of control, stating that the three joint actual controllers maintain a stable control structure through a concerted action agreement and three holding platforms, with no significant disagreements during the reporting period [2] Performance and Capacity - Financial data indicates steady growth in the company's performance, with revenue increasing from 183 million yuan to 242 million yuan and net profit rising from 55 million yuan to 57 million yuan from 2022 to 2024 [3] - Capacity utilization rates for green natural functional raw materials were 151.15%, 61.19%, and 49.87%, while for bio-synthetic functional raw materials, the rates were 93.09%, 19.32%, and 25.33% during the same period [3] - The company reported that sales to its top five customers accounted for 36.61%, 32.30%, and 32.88% of total sales during the reporting period, indicating some volatility in sales amounts [3] Supplier Concentration and Procurement - Jiakai Biological's procurement from its top five suppliers accounted for 64.56%, 62.65%, and 61.57% of total procurement during the reporting period, indicating a higher concentration than industry peers [6] - The largest supplier, Lanzhou Xinweirong Chemical Technology Co., Ltd., had procurement shares of 26.45%, 24.26%, and 29.04% [6] - The company explained that the high supplier concentration is due to industry characteristics, and procurement pricing is determined through market negotiations, with a supplier evaluation and alternative mechanism in place to mitigate risks associated with reliance on single suppliers [6]