Ge Long Hui·2025-08-20 03:07Core Viewpoint - The company has exceeded market expectations in revenue due to the spillover demand for original research drugs within hospitals, achieving a revenue of 35.29 billion yuan in H1 2025, representing a 24.5% increase [1] Revenue and Growth - In H1 2025, the company generated revenue of 35.29 billion yuan (+24.5%), with pharmaceutical and health product sales reaching 29.33 billion yuan (+22.7%) and platform, advertising, and other services generating 5.96 billion yuan (+34.4%) [1] - In Q2 2025, the company achieved revenue of 18.65 billion yuan (+23.7%), indicating a sustained rapid growth in online original research drugs [1] Profitability - The company reported a gross margin of 25.2% (+1.6 percentage points) and an operating profit of 2.13 billion yuan (+105.5%), with an operating profit margin of 6.0% (+2.4 percentage points) [1] - Adjusted net profit reached 3.57 billion yuan (+35.0%), with an adjusted net profit margin of 10.1% (+0.8 percentage points), primarily driven by rapid growth in advertising and commission income [1] Cost Structure and Efficiency - The company optimized its overall expense ratio, with a fulfillment fee rate of 10.1% (-0.3 percentage points), sales fee rate of 5.1% (+0.2 percentage points), R&D fee rate of 2.1% (-0.2 percentage points), and management fee rate of 1.7% (-0.7 percentage points) [2] - The decline in fulfillment fee rate was attributed to an increase in average transaction value, while AI technology has been deployed to enhance operational efficiency [2] Future Projections - Revenue forecasts for FY25 and FY26 are set at 70.4 billion yuan and 81.2 billion yuan, respectively, reflecting year-on-year growth of 21.0% and 15.4% [3] - The company anticipates a 25% growth in pharmaceuticals and high double-digit growth in health products for H2 2025 [3] Profit Forecasts - Adjusted operating profits for FY25 and FY26 are projected at 3.4 billion yuan and 4.5 billion yuan, representing year-on-year growth of 29.3% and 34.9% [3] - Adjusted net profits for FY25 and FY26 are expected to be 5.6 billion yuan and 5.7 billion yuan, with growth rates of 15.9% and 2.6% [4] Valuation - Using a DCF valuation method, the estimated equity value of the company is 218 billion HKD, corresponding to a target stock price of 68.14 HKD per share, with an upward adjustment of 58.8% [4]