Core Viewpoint - The company reported strong performance in 1H25, with revenue and adjusted net profit exceeding expectations, driven by accelerated domestic substitution in the neuro and peripheral business lines and effective cost control [1][2]. Financial Performance - Revenue for 1H25 reached 482 million yuan, representing a year-on-year increase of 31.7% - Adjusted net profit was 131 million yuan, up 68.1% year-on-year - Adjusted net profit margin stood at 27.3% for 1H25 [1]. Business Development Trends - The neuro and peripheral segments are driving growth, with revenues increasing by 25% and 46% year-on-year, respectively - Existing products are gaining market share, while new products like mesh stents and vascular sutures are showing strong sales growth due to external procurement drives and internal sales efforts - The company is establishing itself as a leading domestic player in the vascular intervention field, with expectations of leading the domestic substitution and penetration trends in a stabilizing pricing environment [1][2]. Profitability and Management Confidence - The company initiated cash dividends for the first time in 2024, with a payout ratio of 32%, and plans to maintain this ratio - The management's confidence is further demonstrated through share buybacks and a new equity incentive plan announced in August 2025 [2]. Internationalization and Market Potential - The global peripheral and neuro intervention market is projected to reach 10 billion and 7 billion USD, respectively, by 2024, with China accounting for only 12-15% and 15-20% of these markets - The company has commercialized 22 products across 27 countries and regions as of 1H25, indicating significant international expansion potential [2]. Profit Forecast and Valuation - The adjusted profit forecast for 2025 has been raised by 14% to 192 million yuan, with a first-time projection for 2026 adjusted net profit at 279 million yuan - The current stock price corresponds to a price-to-earnings ratio of 37 and 25 times for 2025 and 2026, respectively [2]. Target Price Adjustment - The target price has been increased by 108% to 30 HKD based on a DCF model, indicating a potential upside of 28% from the current stock price [3].
归创通桥(02190.HK)：业绩再超预期 期待国际化和平台化拓展