China Animal Husbandry Industry Co., Ltd. (600195)

Equity Research Report | Sector: Animal Health Products / Veterinary Drugs | Report Date: September 13, 2026 | As of the close on 2026-09-11 (Friday); intraday and 5-day market data are cross-consistent across five sources — stcn.com, East Money, Sina Finance, 9fzt, and Baidu Finance — indicating relatively high reliability.

This report was automatically compiled and generated by AI based on public information and is for reference only; it does not constitute investment advice.

1. Core Summary

CAHIC closed at RMB 6.83 on 2026-09-11 (-2.57%), finishing near the day's low, breaking below the estimated MA5 of approximately RMB 7.04 and hovering near the MA20/MA50 bull-bear divide of approximately RMB 6.80-6.85; over the past 5 days, main-force capital recorded a cumulative net outflow of approximately RMB 25.416 million (estimated), with turnover of approximately RMB 70.39 million and a turnover rate of only 1.00%, as volume failed to follow the early-September rebound (after the 09-08 high of RMB 7.20, three consecutive down days retraced approximately 5.1%). Valuation pressure warrants the most attention: the TTM P/E is approximately 50x, the dynamic P/E approximately 70x, while the ex-non-recurring P/E TTM is as high as approximately 170x+, mainly because TTM net profit attributable to parent is only approximately RMB 139 million and TTM ex-non-recurring net profit attributable to parent is only approximately RMB 40.34 million — earnings being at a cyclical trough makes PE(TTM) clearly distorted.

The most decision-relevant fundamental fact is "revenue recovery, divergent profit quality": 2026H1 revenue was RMB 3.171 billion (+13.54%), ex-non-recurring net profit attributable to parent was RMB 102 million (+24.61%), but net profit attributable to parent was RMB 49.8461 million (-39.04%), with the difference mainly from a fair value change loss of RMB 41.44 million on the "Jinwei Convertible Bonds" of Jindawei held by the company; excluding this impact, adjusted net profit rose +11.65% year-on-year (company's own statement, non-audited figure). For full-year 2025, net profit attributable to parent was RMB 171 million (+141.68%), but ex-non-recurring net profit attributable to parent was only RMB 20.2476 million (-67.42%) — the growth directions of attributable and ex-non-recurring profit being opposite means the "quality" of earnings must be examined on an ex-non-recurring basis.

Structurally, there is a divergence of "strong chemical drugs & trading, weak biological products": in 2026H1, chemical drugs were RMB 1.191 billion (+19.20%), trading RMB 1.102 billion (+41.53%), feed RMB 531 million (-0.95%), biological products RMB 341 million (-24.23%); the gross margin of biological products continued to fall to 31.67%, dragging overall gross margin down to 18.44% (+1.24pct YoY). The company spans four major segments — vaccines, chemical drugs, feed, and trading — with an overall gross margin of approximately 17.5%-18%, the lowest in the animal health sector (vs. Keqian 67%, Pulike 60%, Biotech 54%, Ringpu 41%), as low-margin trading and chemical drugs dilute high-margin vaccine profits.

Institutional forecasts and recent actions constitute medium-term observation clues: Huachuang Securities on 2026-09-07 lowered its 2026-27 net profit attributable to parent forecasts to RMB 262 million / RMB 396 million (previous values RMB 356 million / RMB 461 million), assigning a target price of RMB 9.75; China Galaxy, Southwest Securities, CICC, and SDIC Securities also maintained recommend/buy/overweight ratings, with target prices ranging from RMB 7.85-9.75. The company recently advanced the approval number for a multivalent foot-and-mouth disease vaccine containing South Africa type 1, obtained a new veterinary drug registration certificate for pentobarbital sodium by a controlled subsidiary, completed the acquisition of controlling stakes in Shengxue Dacheng and Inner Mongolia Shengxue Dacheng for RMB 727 million, and is advancing its African swine fever vaccine in an orderly manner under the "Veterinary Drug Registration Measures."

2. Company Overview

2.1 Basic Information

2.2 Main Business and Product Layout

• Veterinary biological products (vaccines): poultry/livestock/pet vaccines, representative varieties include highly pathogenic avian influenza vaccine, Marek's disease series, foot-and-mouth disease vaccines (including South Africa type 1), ST swine fever vaccine, porcine circovirus inactivated vaccine ("Muyuankang" subunit vaccine), pseudorabies live vaccine, bovine lumpy skin disease inactivated vaccine, rabies inactivated vaccine, canine tetravalent vaccine, feline trivalent inactivated vaccine, and diagnostic preparations
• Veterinary chemical drugs: veterinary drug formulations + veterinary drug APIs, main products include tiamulin, tylvalosin API, florfenicol API, Mule Star, Fuxintai, sulfachlorpyridazine sodium, pet disinfectants, etc.
• Feed and feed additives: mainly compound vitamins and compound premixes, "Hualuo" brand; leading in layer premixes
• Trading: corn and corn by-products, soybean meal, fishmeal, lysine and other feed raw materials and additive trading, with downstream being relatively large domestic feed mills and farms (also serving to reduce costs through procurement scale effects)

2.3 Industry Chain Position and Cost-Profit Structure

The company spans four major segments — "vaccines (high margin) + chemical drugs + feed + raw material trading (low margin)" — and is a midstream manufacturer + supply integrator positioned in the midstream of the animal health industry chain; its procurement is mainly feed raw materials, chemical and fermentation raw materials, culture media/adjuvants, etc., and its sales are divided into government procurement and market-based sales of biological products, as well as purely market-based sales of chemical drugs and premixes.

• Procurement model (2026 Interim Report original text): anchored on procurement budget execution and key self-procured varieties of affiliated enterprises; dynamic management of price information for major raw materials, with important raw materials/major contracts subject to collective decision-making by the procurement committee; obtaining production materials through tender procurement and price-comparison procurement; launching the "Sunshine Procurement Inquiry System" and building a dynamic cost analysis model to reduce costs.
• Actual input categories for feed/trading segment: corn, soybean meal, fishmeal, lysine, compound vitamin raw materials (vitamin monomers mostly rely on external procurement/imports), trace elements, amino acids — a price taker for such bulk raw materials, with costs fluctuating with agricultural products and exchange rates (the company explicitly lists "abnormal exchange rate fluctuations affecting feed raw material procurement timing and costs" as a risk).
• Input categories for chemical drugs segment: chemical raw materials, fermentation raw materials (glucose/starch), intermediates — also a price taker; the veterinary drug API industry has excess capacity and prices are bottoming (CICC 2Q26: veterinary drug raw material index VPi 66.8, -1% YoY).
• Input categories for biological products segment: culture media, adjuvants, seed virus, packaging materials, etc., with relatively high technical barriers; the company has supporting facilities such as "CAHIC Yixing Biological Adjuvant Co., Ltd."
• Overall judgment: limited upstream bargaining power, belonging to cost-plus/cost-pass-through-obstructed type; no supplier concentration data disclosed.
• Sales model divided into two types: biological products = government procurement (government tender procurement of vaccines for national compulsory immunization + local government tenders) + market-based sales; chemical drugs, premixes = purely market-based sales. The government procurement business participates in bidding in all regions, while the market-based business focuses on "group customers."
• Low customer concentration: Tonghuashun F10 "Top 5 Customers" historical data is approximately 7.3%~13.7% of revenue (most recent period approximately RMB 533 million, accounting for 13.03%). Note: this caliber does not match the consolidated revenue of RMB 6.205 billion (13.03% corresponds to a base of approximately RMB 4.09 billion), suspected to be by-entity/by-segment caliber, single source, unable to be cross-verified; specifics should be based on the annual report original text.
• The top five debtors of accounts receivable are generally local animal husbandry bureaus/agriculture and rural affairs bureaus/agriculture and forestry bureaus (formed by government procurement), consistent with the "government procurement" model; a single subsidiary audit report shows accounts receivable of only several tens of millions (subsidiary caliber, not consolidated caliber).
• Downstream structural bargaining: the animal health industry is highly competitive, and farming group customers clearly press for lower prices; the company's response strategy is to be a "drug + feed + vaccine integrated service provider," providing full-cycle solutions to group customers, upgrading from "supplier relationship" to "strategic partner" with large farming groups.
• Customer concentration data source: Tonghuashun F10 historical "Top 5 Customers" data, single source, unable to be cross-verified, and caliber is questionable; specifics should be based on the latest annual report.
• This search failed to obtain consolidated-caliber absolute accounts receivable, accounts receivable turnover days, prepayments/accounts payable data (only subsidiary-caliber accounts receivable found), which is the evidence gap in this section; it is recommended to supplement directly from the 2025 Annual Report/2026 Interim Report balance sheet.
• Top 5 customers historically accounted for approximately 7.3%~13.7% (most recent period approximately RMB 533 million, accounting for 13.03%); this data source is Tonghuashun F10, single source, unable to be cross-verified, and does not match the consolidated revenue base of RMB 6.205 billion, suspected to be by-entity/by-segment caliber; specifics should be based on the latest annual report original text.

CAHIC is a midstream manufacturer + supply integrator spanning "vaccines (high margin) + chemical drugs + feed + raw material trading (low margin)" — not an upstream resource-type high-margin enterprise, nor a downstream brand-type enterprise. Its overall gross margin is "diluted" by the low-margin trading and chemical drugs that account for more than half of revenue, making it the company with the lowest gross margin in the animal health sector; the key to future gross margin improvement is not resource price increases, but rather the restoration of market share for major biological product single products (FMD/avian influenza/Marek's) + ramp-up of high-margin pet vaccines + international registration of chemical drugs/API certification + integrated binding with group customers such as Muyuan, rather than mere cost control.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

2025 revenue was RMB 6.205 billion (RMB 6,204,589,897.56), net profit attributable to parent RMB 171 million (RMB 171,316,094.02), ex-non-recurring net profit attributable to parent only RMB 20.2476 million (-67.42% YoY); 2025 basic EPS RMB 0.1678 (+141.79% YoY), dividend plan 10 shares pay RMB 0.51. 2026H1 ex-non-recurring net profit attributable to parent RMB 102 million (+24.61% YoY), basic EPS RMB 0.0488 (-39.08% YoY), ex-non-recurring EPS RMB 0.0997 (+24.63% YoY), weighted average ROE 0.88% (-0.59pct YoY), gross margin 18.44% (+1.24pct YoY), asset-liability ratio 30.24%, net assets attributable to parent RMB 5.716 billion, total assets RMB 9.502 billion. The decline in 2026H1 net profit attributable to parent was mainly due to a fair value change loss of RMB 41.44 million on the "Jinwei Convertible Bonds" (127111) of Jindawei held by the company; excluding this impact, adjusted net profit rose +11.65% YoY (company's own statement, non-audited figure). 2026Q2 revenue RMB 1.662 billion (+8.35%), net profit attributable to parent RMB 26 million (+44.61%), ex-non-recurring net profit RMB 51 million (+184.05%). 2026H1 by segment: chemical drugs RMB 1.191 billion (+19.20%), trading RMB 1.102 billion (+41.53%), feed RMB 531 million (-0.95%), biological products RMB 341 million (-24.23%). 2026Q1 ex-non-recurring net profit RMB 51.028 million. 2024 EPS RMB 0.0694, weighted ROE 1.29%. Data sources: Jiemian News, East Money, Galaxy Securities, Huachuang Securities, Stockstar, Tonghuashun, Shanghai Securities News, etc.

Revenue has rebounded for two consecutive years since bottoming in 2024 (2025 +3.11%, 2026H1 +13.54%), but net profit attributable to parent has been extremely volatile (2024 -82.41%, 2025 +141.68%, 2026H1 -39.04%), with improvement only appearing on an ex-non-recurring basis in 2026H1 (+24.61%). Profit is clearly disturbed by non-recurring factors such as fair value changes on convertible bonds of the associate Jindawei, with attributable and ex-non-recurring growth directions often opposite (2025 annual report attributable +142%/ex-non-recurring -67%; 2026H1 attributable -39%/ex-non-recurring +25%); when looking at YoY, one must distinguish between attributable/ex-non-recurring calibers, and valuation should be based on ex-non-recurring and core business trends.

3.2 Earnings Forecasts

The above forecasts are all institutional forecasts (not company-disclosed), subject to differences in source, caliber, and timeliness. Latest single-institution forecasts: Huachuang Securities 2026-09-07 (2026-27 net profit attributable to parent lowered to RMB 262 million / RMB 396 million, previous values RMB 356 million / RMB 461 million; introduced 2028 RMB 501 million; corresponding EPS RMB 0.26/0.39/0.49; corresponding PE 27/18/14x, PB 1.2/1.1/1.1x; target price RMB 9.75, "Recommend"); China Galaxy 2026-08-27 (2026-27 EPS RMB 0.21/0.31, PE 33/22x, "Recommend"). East Money consensus forecast averages (as of approximately September 2026, including older reports): 2025E EPS 0.2250 (6 firms) | 2026E EPS 0.3067 (6 firms) | 2027E EPS 0.4080 (5 firms); net profit attributable to parent 2025E RMB 227.2 million | 2026E RMB 313.3 million | 2027E RMB 417.6 million; total operating revenue 2025E RMB 6.625 billion | 2026E RMB 7.425 billion | 2027E RMB 8.162 billion; net assets per share 2025E 5.5550 | 2026E 5.7900 | 2027E 6.0800; ROE 2025E 3.91% | 2026E 5.17% | 2027E 6.46%. Most institutional detail report dates in this table are concentrated in 2026-03 and earlier, not yet fully reflecting 2026H1 results and the latest August-September research reports. Third-party consensus (English source, sample of only 2 firms): Investing.com/S&P Global, stockanalysis.com consensus rating Strong Buy, 12-month average target price RMB 9.00 (range 8.00-10.00); stockanalysis EPS This Year 0.20, Next Year 0.22; revenue 2026E 6.71B (+8.19%), 2027E 7.76B. Historical forecast deviation warning: 2025E consensus EPS RMB 0.2250 vs. actual RMB 0.1678, deviation of approximately 34%, so the credibility of this stock's earnings forecasts needs to be discounted.

3.3 Valuation Level and Institutional Ratings

As of around 2026-09-11, the closing price was approximately RMB 6.83 (Sohu Securities 2026-09-11; Investing.com shows RMB 6.75; stockanalysis shows RMB 6.81 on 2026-08-18; different cached pages show RMB 8.11, RMB 7.14, RMB 6.83 respectively; it is recommended to use "approximately RMB 6.8-6.9, market cap approximately RMB 7 billion" and note the snapshot date). Market cap approximately RMB 6.974 billion. P/E TTM approximately 50.0x (Sohu Securities lists 50.03; Investing.com lists 49.3), because TTM net profit attributable to parent is only approximately RMB 139 million (= 2025 annual report RMB 171 million - 2025H1 RMB 82 million + 2026H1 RMB 50 million). Ex-non-recurring P/E TTM is extremely high, approximately 170x+ (TTM ex-non-recurring net profit attributable to parent approximately RMB 40.34 million, enterprise value/ex-non-recurring net profit 202.8x). P/B approximately 1.22-1.24x (net assets per share RMB 5.60; Investing.com lists 1.24); dividend yield approximately 0.74% (Investing.com); 52-week range RMB 5.76-9.03; undistributed profit per share approximately RMB 3.53. Valuation judgment: on an attributable basis, PE(TTM) is approximately 50x, and on an ex-non-recurring basis, far above 100x — valuation is not cheap, mainly because earnings are at a cyclical trough. Based on institutional 2026E EPS of RMB 0.26 and the current price of RMB 6.83, the dynamic PE is approximately 26x; based on 2027E RMB 0.39, approximately 17-18x (roughly consistent with Huachuang's 27/18/14x). Non-recurring gains and losses cause significant disturbance, PE(TTM) is clearly distorted, and valuation should be based on ex-non-recurring and core business trends.

4. Recent News and Announcements

4.1 Recent News and Announcements for CAHIC (600195)

The research subject is CAHIC (China Animal Husbandry Industry Co., Ltd.), stock code 600195, listed on the Shanghai Stock Exchange. During the research process, it was noted that some sources cited dates in 2026, and the research minutes did not clearly state the current time frame; specific latest announcement date data is missing or uncertain. The main matter clues involved in the research include: relocation compensation being followed up, acquisition having passed review, significant R&D advantages, African swine fever vaccine advancement; the African swine fever vaccine is being advanced in an orderly manner in accordance with the provisions of the "Veterinary Drug Registration Measures"; resolutions of the 13th interim meeting of the 9th Board of Directors in 2025, resolutions of the 2nd interim shareholders' meeting in 2025, the 2025 annual profit distribution plan, resolutions of the 4th meeting of the 9th Board of Directors, resolutions of the 12th interim meeting of the 9th Board of Directors in 2025 (2025-09-29); controlled subsidiary's pentobarbital sodium obtained a new veterinary drug registration certificate; obtained approval documents for veterinary drug product approval numbers for a multivalent foot-and-mouth disease vaccine containing South Africa type 1; acquired controlling stakes in Shengxue Dacheng and Inner Mongolia Shengxue Dacheng for RMB 727 million and completed the acquisition; 2022 annual report cash dividend amount (including tax) 183,806,686.80; investor Q&A on whether a buyback and increase plan is arranged; top ten circulating shareholders structure changed (Guotai CSI Livestock Breeding ETF etc. increased or decreased holdings, northbound capital reduced holdings, Dai Hongxiang etc. increased holdings). The above is based only on expressions appearing in research minutes and source link titles; specific announcement dates, transaction details, and financial data are not fully provided in the research minutes, and data is missing or uncertain.

5. Stock Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

CAHIC (600195.SH) closed at RMB 6.83 on 2026-09-11, down 2.57%, finishing near the day's low, a weak close. In early September, the stock rebounded from around 6.7 to RMB 7.20 on 09-08, then 09-09 to 09-11 saw three consecutive down days retracing approximately 5.1% of this round's gains, showing a "spike and pullback, volume not keeping up" top characteristic; the current price has broken below the estimated MA5 (approximately 7.04) and is close to the MA20/MA50 zone (approximately 6.80~6.85), which is the bull-bear divide for this round of rebound. On the capital flow side, over the past week (09-07~09-11), main-force capital continued net outflow overall, concentrated in the three trading days after the 09-08 high, consistent with the price decline direction, a short-term bearish capital flow pattern, with retail/small orders slightly net inflow against the trend. On the valuation side, TTM P/E approximately 50x, dynamic P/E approximately 70x, interim report net profit attributable to parent -39.04% YoY, constraining further stock price upside. Note that available technical indicator snapshots all lag the 09-11 close, with limited directional reference value.

5.3 Short-Term Outlook (Next Week, Scenario Projection, for Reference Only)

⚠️ Risk Warning: The following content is solely a subjective scenario projection based on 2026-09-11 closing data and historical prices and technical indicators; it does not constitute investment advice and does not represent a guarantee of future actual movements.

① Key Technical Levels

② Next Week Scenarios (Subjective Weights, Not Statistical Probabilities)

• Range-bound consolidation (relatively high subjective weight, approximately 60% (subjective heuristic weight, not statistical probability)): The stock price repeatedly digests within the RMB 6.70~7.20 range, seesawing around the estimated MA20/MA50 (approximately 6.80~6.85). Trigger/sustaining conditions: turnover maintained in the recent range of approximately RMB 52 million~96.3 million, main-force capital net outflow slowing or turning to small fluctuations, no new catalysts or negative news; daily close does not break below 6.70, nor effectively stand above 7.20.
• Weaker downside (moderate subjective weight (subjective heuristic weight, not statistical probability)): If main-force capital continues the sustained net outflow of the past week and the daily close effectively breaks below RMB 6.70, it may probe the strong support zone of RMB 6.50~6.60; if this zone is further effectively broken, downside will look toward the 52-week low of RMB 5.76. Trigger conditions: shrinking volume or volume-driven decline, sector or broader market environment weakening.
• Rebound strengthening (relatively low subjective weight (subjective heuristic weight, not statistical probability)): If single-day turnover clearly expands, main-force capital turns to net inflow, and the stock price effectively stands above RMB 7.20 (09-08 rebound high), upside space opens, looking toward the Bollinger upper band roughly estimated at approximately RMB 7.2~7.3 and the previous higher volume dense zone. Trigger conditions: volume expansion in coordination, emergence of clear catalyst news or overall sector strengthening.

③ Capital and Liquidity Background

Liquidity background: Recent daily turnover rates are generally approximately 0.6%~1.3% (09-11 was 1.00%, 09-08 was 1.32%, 06-26 was 0.87%); recent daily turnover range is approximately RMB 52 million~96.3 million (06-26 approximately RMB 52.53 million, 09-08 approximately RMB 96.3 million, 09-11 approximately RMB 70.39 million). This stock has a market cap of approximately RMB 7 billion, daily turnover of less than RMB 100 million, turnover rate of approximately 1%, relatively thin order book (09-11 five-level bid/ask orders mostly at the hundreds-of-lots level), relatively large slippage and impact costs for large in/out flows, short-term prices easily amplified by capital flow direction. On shareholder structure (data date 2026-06-30, announcement date 2026-08-27, approximately 2.5 months ago, subject to disclosure lag, structure may have changed, for background reference only): the top ten shareholders total 566,779,000 shares, accounting for 55.50% of total shares, of which controlling shareholder China Animal Husbandry Industry Group holds 49.37% (central SOE), plus Guotai CSI Livestock Breeding ETF approximately 1.09% (passive industry ETF, increased by 2,960,400 shares from the previous period), Hong Kong Central Clearing approximately 0.52% (decreased by approximately 2,589,900 shares from 7,874,900 shares on 03-31), with the rest mostly natural persons. That is, nominally "institutional concentration" mainly comes from controlling shareholder SOE holdings, rather than market-based institutions such as public funds/social security; the only public fund with real increase/decrease influence in the secondary market is a passive industry ETF. Number of shareholders as of 2026-06-30 was 37,078, down 10.29% from 41,331 as of 2026-03-31, a signal of slight chip concentration. Northbound capital data is questionable: 9fzt states "latest reduction of 437,400 shares, total holding 9,786,700 shares," inconsistent with Hong Kong Central Clearing's 5,285,000 shares in the top ten shareholders as of 2026-06-30 — different calibers or lagging sources, unable to be cross-verified.

Volume confirmation signal: If single-day turnover continues to expand above RMB 100 million (above the upper end of the recent normal range of approximately RMB 52 million~96.3 million), it can be regarded as a capital entry signal; if volume expansion is accompanied by the stock price effectively standing above RMB 7.20, the reference value of the stronger scenario increases (observation idea only, not an operational instruction).

④ Points to Watch (Observation Ideas Only, Not Operational Instructions)

• Observe whether the daily close can hold RMB 6.70 (lower edge of first support); if lost, short-term weakening is confirmed; on the upside, watch whether it can effectively stand above RMB 7.20 (09-08 rebound high) to open upside space (observation idea, not an operational instruction).
• Track whether main-force capital flow continues net outflow (past 5 days 09-07~09-11 main-force net amount totaled approximately -RMB 25.416 million, an estimated value), and whether there is an inflection point from outflow to net inflow (observation idea, not an operational instruction).
• Watch whether single-day turnover can continue to expand above RMB 100 million, as a confirmation signal of capital entry; shrinking volume is more likely to maintain consolidation (observation idea, not an operational instruction).
• Watch changes in news and sector environment (such as announcements related to R&D progress of the African swine fever vaccine), and disturbances from the broader market environment on short-term fluctuations (observation idea, not an operational instruction).

The above scenario projection is based on 2026-09-11 closing data and historical prices and technical indicator calculations; short-term stock prices will also be disturbed by multiple factors such as news, capital flows, and the broader market environment; technical indicators themselves have lag and limitations, do not constitute a guarantee of future actual movements, nor constitute buy/sell advice; please combine with the latest market information to judge independently and bear investment risks yourself.

6. Industry Landscape and Competitor Analysis

6.1 Industry Status

The animal health products/veterinary drug industry in which the company operates is highly competitive, with overall industry profitability declining. The company is an important constituent enterprise of the domestic veterinary drug and feed industry, a designated manufacturer of vaccines for major animal diseases such as highly pathogenic avian influenza and foot-and-mouth disease, and its vaccine sales volume has remained first in the domestic industry for many years (this statement is based on the company's historical disclosure caliber).

6.2 Competitive Landscape

• The animal health industry is highly competitive, farming group customers clearly press for lower prices, industry competition is fierce, and corporate profitability is declining overall (CICC "Animal Health Sector 2Q26 Results Review").
• The veterinary drug API industry has excess capacity and prices are bottoming (CICC 2Q26: veterinary drug raw material index VPi 66.8, -1% YoY).
• In 2025, animal health company gross margins diverged significantly: Keqian 67%, Pulike 60%, Biotech 54%, Ringpu 41%, CAHIC approximately 17.5% — the lowest in the sector.
• Subsidiary Shenglibio's tiamulin fumarate API passed US FDA on-site audit in June 2026 (zero defects); chemical drugs have formed 3 products exceeding RMB 100 million and 12 products exceeding RMB 10 million.
• Biological products obtained production qualification for a foot-and-mouth disease vaccine containing South Africa type 1; established a wholly-owned subsidiary in Guiyang to build an annual production base of 20,000 tons of premix + 20,000 tons of complete concentrated feed; joint venture with Muyuan (CAHIC Muyuan) deeply binds group customers; acquisition of Shengxue Dacheng has passed antitrust review.

6.3 Main Competitors

CAHIC's overall gross margin of approximately 17.5% is clearly lower than Keqian Biology (67%), Pulike (60%), Biotech (54%), and Ringpu Biology (41%), making it the company with the lowest gross margin in the animal health sector; the difference mainly stems from the company's business structure having a relatively high proportion of low-margin trading and chemical drugs, diluting overall gross margin, while the high-margin biological products segment has a relatively limited revenue share and its gross margin has declined in recent years.

7. Risk Warnings

• Earnings "quality" risk: 2025 net profit attributable to parent RMB 171 million (+141.68%) but ex-non-recurring net profit attributable to parent only RMB 20.2476 million (-67.42%); 2026H1 attributable -39.04% but ex-non-recurring +24.61% — the two directions repeatedly opposite, with profit highly disturbed by non-recurring items such as fair value changes on Jindawei's "Jinwei Convertible Bonds" (2026H1 loss of RMB 41.44 million on this item); if convertible bond fair value or investment income fluctuates significantly again, net profit attributable to parent may continue to diverge from core business trends.
• Continued pressure on biological products segment risk: 2026H1 biological products revenue RMB 341 million (-24.23%), gross margin down to 31.67% (was ≥49% in 2022); as the core profit source (in 2022, 19% of revenue contributed 46.8% of gross profit), if the share and price recovery of its major single products (FMD/avian influenza/Marek's) continues to fall short of expectations, it will directly drag overall gross margin and profit, while 2026H1 domestic overall gross margin was only 16.97% and overseas 40.11%, still structurally dependent on high-margin business to replenish.
• Structurally low gross margin and low-margin business expansion risk: the company's overall gross margin is approximately 17.5%-18%, the lowest in the animal health sector (Keqian 67%, Pulike 60%, Biotech 54%, Ringpu 41%). 2026H1 trading revenue RMB 1.102 billion (+41.53%) but gross margin only 9.54%, chemical drugs gross margin 22.60%; a rising share of low-margin business will continue to dilute overall profitability, and scale growth may not bring proportional profit growth.
• Overvaluation and ex-non-recurring caliber distortion risk: TTM P/E approximately 50x, dynamic P/E approximately 70x, ex-non-recurring P/E TTM approximately 170x+ (TTM ex-non-recurring net profit attributable to parent approximately RMB 40.34 million), P/B approximately 1.22x, dividend yield approximately 0.74%; based on 2026E EPS of RMB 0.26, the dynamic PE is approximately 26x, meaning the current stock price has already priced in the next two years of profit recovery; once the ex-non-recurring improvement pace falls short of expectations, downward valuation correction pressure is relatively large.
• Earnings forecast credibility and institutional downgrade risk: 2025E consensus EPS RMB 0.2250 vs. actual RMB 0.1678, deviation of approximately 34%; Huachuang Securities on 2026-09-07 lowered its 2026-27 net profit attributable to parent forecast from RMB 356 million / RMB 461 million to RMB 262 million / RMB 396 million, and target price from RMB 10.45 to RMB 9.75, reflecting a marginal weakening of institutional confidence in earnings delivery.
• Upstream cost and exchange rate fluctuation risk: the company's feed and trading segment procures bulk commodities such as corn, soybean meal, fishmeal, lysine, and compound vitamin raw materials; it is a price taker for such raw materials, with costs fluctuating with agricultural products and exchange rates; the company itself has listed "abnormal exchange rate fluctuations affecting feed raw material procurement timing and costs" as a risk; limited upstream bargaining power and obstructed cost pass-through will squeeze already thin profit margins.
• Short-term capital flow and liquidity risk: 2026-09-11 closed at RMB 6.83, finishing near the day's low; 09-09 to 09-11 saw three consecutive down days retracing approximately 5.1% of this round's gains; over the past week (09-07 to 09-11), main-force capital continued net outflow (estimated total approximately -RMB 25.416 million), daily turnover only approximately RMB 52 million-96.3 million, turnover rate approximately 1.00%, market cap approximately RMB 7 billion, all circulating shares, relatively thin order book (five-level orders mostly at the hundreds-of-lots level), relatively large slippage and impact costs for large in/out flows, short-term prices easily amplified by capital flow direction.
• Data caliber and disclosure lag risk: top 5 customers accounting for 13.03% does not match the consolidated revenue base of RMB 6.205 billion (suspected to be by-entity/by-segment caliber); northbound capital holding data is inconsistent across different sources (9fzt 9,786,700 shares vs. Hong Kong Central Clearing 5,285,000 shares); top ten shareholders data date is 2026-06-30, announcement date is 2026-08-27 (approximately 2.5 months ago); related customer concentration and shareholder structure conclusions are all based on single or lagging sources, unable to be cross-verified; specifics should be based on the latest annual report original text.

8. Conclusion and Outlook

In terms of growth logic, the company's marginal improvement mainly comes from three clues: First, the chemical drugs segment continues to be strong (2026H1 revenue +19.20%), subsidiary Shenglibio's tiamulin fumarate API passed US FDA on-site audit in June 2026 (zero defects), chemical drugs have formed 3 products exceeding RMB 100 million and 12 products exceeding RMB 10 million, and export- and certification-driven internationalization is a visible incremental direction; Second, ex-non-recurring core business profit has turned to positive growth (2026H1 ex-non-recurring +24.61%, 2026Q2 ex-non-recurring +184.05%); if non-recurring disturbances such as fair value changes on Jindawei's convertible bonds no longer expand, the growth gap between attributable and ex-non-recurring is expected to converge; Third, production qualification for a foot-and-mouth disease vaccine containing South Africa type 1, advancement of African swine fever vaccine R&D, joint venture with Muyuan to bind group customers, the Guiyang premix base, and the external acquisition of Shengxue Dacheng are all medium-to-long-term arrangements around the "drug + feed + vaccine integrated service provider" positioning.

However, there are clear constraints on the realization of the growth logic: the biological products segment's 2026H1 revenue -24.23% and gross margin down to 31.67%, as the core profit source (in 2022, 19% of revenue contributed 46.8% of gross profit), has not yet stopped declining; the shift from government procurement to market-based and the industry's "involution" price wars make the share and price recovery of major vaccine single products the key to gross margin improvement, rather than cost control; the trading segment, though +41.53%, has a gross margin of only 9.54% — high growth accompanied by low-margin expansion, difficult to support valuation alone. The credibility of performance forecasts also needs to be discounted: 2025E consensus EPS RMB 0.2250 vs. actual RMB 0.1678, deviation of approximately 34%, and Huachuang had already lowered its earnings forecast and target price in September 2026 (from previous RMB 10.45 to RMB 9.75).

Overall, the company is in a state of "revenue rebounding for two consecutive years, ex-non-recurring core business improving but attributable profit disturbed by non-recurring items, overall gross margin at the sector's lowest, valuation on an ex-non-recurring basis relatively high." Based on institutional 2026E EPS of RMB 0.26 and the current price of RMB 6.83, the dynamic PE is approximately 26x; based on 2027E RMB 0.39, approximately 17-18x (consistent with Huachuang's 27/18/14x), meaning the current valuation has to a considerable extent priced in the next two years of profit recovery. The pace of ex-non-recurring earnings delivery, whether biological products gross margin can stabilize, and the ramp-up of new growth points such as chemical drug exports and pet vaccines are the core observation variables for judging whether its growth logic can be realized; the technical-side battle over the RMB 6.70 support and RMB 7.20 resistance is the short-term capital flow divide.

Data Sources

• CAHIC 2024 Annual and 2025 Q1 Earnings Briefing
• China Animal Husbandry Industry Co., Ltd. 2025 Annual Report Summary - Sina Finance
• 600195 CAHIC
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• China Animal Husbandry Industry Co., Ltd. 2025 Annual Report Summary - China Animal Husbandry Industry Co., Ltd. 2025 Annual Report Summary
• CAHIC: China Animal Husbandry Industry Co., Ltd. 2025 Annual Report Summary - Home >
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• CAHIC (600195)_Company Profile_Cfi.cn - | CAHIC (600195) Company Profile
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• CAHIC: African Swine Fever Vaccine Being Advanced in Orderly Manner Under "Veterinary Drug Registration Measures"
• CAHIC (sh600195) Quote Trend - CAHIC (sh600195) 2026-09-11 16:16:54 (Beijing Time) +Add to Watchlist
• Shanghai Margin-Eligible Securities List (20260630) - Shanghai A | 600195 | CAHIC | 0.4 | D
• Shanghai Margin-Eligible Securities List (20250818) - Shanghai A | 600185 | Zhumian Group | 0 | D
• CAHIC (sh600195) Quote Trend
• Shanghai Margin-Eligible Securities List (20250901) - Shanghai A | 600172 | Huanghe Whirlwind | 0 | E
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• 2025 Animal Health Enterprise Report Card: Keqian Highest Gross Margin at 67%, Ringpu Tops Revenue at RMB 3.3 Billion - 2025 Animal Health Enterprise Report Card: Keqian Highest Gross Margin at 67%, Ringpu Tops Revenue at RMB 3.3 Billion
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• 2025 First Three Quarters Animal Health Enterprise Operating Conditions
• About China Animal Husbandry Industry Co Ltd (600195)
• CAHIC Listed Company Information - CAHIC Listed Company Information
• CAHIC - CAHIC
• CAHIC (600195.SH)
• CAHIC (600195)_Stockstar
• CAHIC: 8.11 -3.68% -0.31 600195 Sohu Securities
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• CAHIC: 6.83 -2.57% -0.18 600195 Sohu Securities
• CAHIC: 6.83 -2.57% -0.18 600195 Sohu Securities - - Recently Viewed
• China Animal Husbandry Industry Co., Ltd. Reports Earnings Results for the Full Year Ended December 31, 2024 - d502bb7ac69a5699bffb4c4b55591af3.v5J823jNnOhnl25P7JOiNe_L_XNWo8U7rVucjlSzocQ
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• CAHIC (600195) Key Indicators_CAHIC (600195) Financial Indicators, Financial Analysis_Stockstar
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• China Animal Husbandry Industry Co, Ltd. rapporterar resultat för helåret som slutade den 31 december 2024 - d623.gzjtuj8UmHhrZLYsml8VfgtL3_1i7YBofc7lAoZnBII.2lrYygxex00gO95aqhBnB2kcps4VuuwGT_nWU9kJZbrEXrqMSXDRITIWjg