Events: The company released its 2020 semi-annual report. In the first half of the year, it achieved operating income of 918 million yuan, an increase of 7.30% over the previous year; net profit attributable to shareholders of listed companies was 69.512,100 million yuan, an increase of 77.60%; and net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss was 508.657 million yuan, an increase of 112.72% over the previous year. Increased downstream demand led to significant improvements in the company's performance. The steroidal hormone API business in the first half of the year was affected by the increase in downstream demand. Sales volume increased, achieving revenue of 587 million yuan, an increase of 32.54% over the previous year; functional feed additives achieved revenue of 66 million yuan, an increase of 38.25% over the previous year, mainly because the company laid out the anti-resistance market ahead of schedule. With the implementation of domestic anti-resistance policies, related business grew rapidly; and the enzyme preparation business achieved revenue of 235 million yuan. In the second half of the year, it is expected that as downstream storage continues to rise and the company continues to increase its market development efforts, the growth of the company's feed enzymes and alternative feed additives is expected to accelerate further. The forward-looking layout of the alternative market, and policy implementation led to rapid market growth, and the implementation of anti-resistance policies in 2020. Alternative feed additives are expected to accelerate development, with potential space of 5 to 10 billion dollars in the future. 1) In 2018, through the acquisition of Shiwei Technology, the company strategically laid out the field of green anti-drug feed additives. Currently, the company has formed three types of alternative antibody products in the drug replacement market: plant extracts, antiantigen preparations, and acidifiers, as well as the antigen complex product solution “Boyikang”. Among them, the plant extract Boyikang is the company's exclusive variety. Boluo Huihan has a good effect as an alternative to antibiotics. Previously, it had more than 10 years of experience in product sales in Europe. The company achieved revenue of nearly 100 million yuan from antigen products last year. 2) Over the years, the company has developed channel advantages and brand advantages in agriculture and animal husbandry. Currently, the company's domestic alternative products have entered the sales stage, and it is expected that they will experience rapid growth in the future. With R&D innovation to support development, new business opens up room for growth, the company focuses on biotechnology R&D and innovation, and has now formed three series of products centered around the two major application fields of biomedicine and biological agriculture and animal husbandry. In the field of biological enzyme preparations, the company is the leader in the feed enzyme preparation industry, with a market share of about 20%. In the future, while consolidating its leading position in the country, it will increase exports and expand overseas markets, and on the other hand, it will continue to expand into other enzyme preparations; in the field of steroidal APIs, the company has become a leading enterprise in the industry, and is expected to gradually expand downstream in the future, relying on the cost and technical advantages of the company's key steroid intermediates. Facing the new alternative market opportunities brought about by the complete ban on domestic feed, the company is expected to become a leading domestic functional feed additive enterprise with “heavy core products+superior product portfolio+deep channel advantages”. Profit forecasts and investment recommendations anticipate that in 2020-2022, the company will achieve revenue of 24.98/29.61/3482 billion yuan, an increase of 21.99%/18.52%/17.58%, net profit of 2.04/2.99/380 million yuan, an increase of 60.21%/46.19%/27.32%, and EPS of 0.43/0.62/0.79 yuan respectively, corresponding to current PE 34/23/18 times, maintaining the “buy” rating. Risk warning: additional columns fall short of expectations; new product promotion falls short of expectations; risk of the epidemic