Lepu Medical(SZ:300003) Xin Lang Cai Jing·2025-08-25 06:39Core Viewpoint - The company reported its 1H25 performance, showing a slight decline in revenue but a positive trend in net profit for the second quarter, indicating stabilization in its existing business and potential for future growth through new product launches [1][2][4]. Financial Performance - 1H25 revenue was 3.369 billion yuan, a year-on-year decrease of 0.4% - Net profit attributable to shareholders was 691 million yuan, down 0.9%, while the net profit excluding non-recurring items was 662 million yuan, up 2.3% - 2Q25 revenue reached 1.633 billion yuan, an increase of 11.7% year-on-year - 2Q25 net profit attributable to shareholders was 310 million yuan, up 45.0%, and net profit excluding non-recurring items was 325 million yuan, up 70.3% [1]. Business Segments - Medical device revenue for 1H25 was 1.776 billion yuan, a year-on-year increase of 1.3% - Coronary revenue increased by 3.6% - Structural heart disease revenue rose by 32.1% - Surgical anesthesia revenue decreased by 10.29% - In-vitro diagnostics revenue fell by 17.35% [2]. - Pharmaceutical revenue was 1.117 billion yuan, a year-on-year decrease of 1.5%, but increased by 79.3% quarter-on-quarter - The revenue from formulations (generic drugs) was 975 million yuan, up 3.9% year-on-year, and 1.42 billion yuan from raw materials, down 27.4% year-on-year [2]. - Medical services and health management revenue was 475 million yuan, down 4.1% year-on-year [2]. New Product Development - The company is focusing on several growth areas: - Innovative drugs: The subsidiary Shanghai Minwei Biotech is developing a triple receptor agonist candidate, MWN101, which has completed Phase II clinical trials for obesity and type 2 diabetes [3]. - Consumer healthcare: Products like polylactic acid facial fillers and sodium hyaluronate injections have received approval and are in commercialization [3]. - Neuroscience: The company anticipates approval for its deep brain stimulation device in Q4 2025 and is exploring further developments in brain-computer interfaces and artificial intelligence [3]. Profit Forecast and Valuation - The company maintains its profit forecasts for 2025/26, with a current price corresponding to a P/E ratio of 27/24 times - The target price has been raised by 60% to 24 yuan, indicating a 32% upside potential from the current price, corresponding to a P/E ratio of 35/32 times for 2025/26 [4].