Core Viewpoint - The company's 1H25 performance slightly missed market expectations, but showed a sequential recovery, with revenue of 6.644 billion yuan, a year-on-year increase of 0.1%, and a net profit of 1.008 billion yuan, a year-on-year decrease of 9.0% [1] Performance Summary - 1H25 revenue from the medical device segment was 3.191 billion yuan, showing a year-on-year growth of 0.1%, with volume growth expected to remain in single digits due to pricing pressure from centralized procurement [1] - The pharmaceutical packaging segment generated revenue of 1.166 billion yuan, down 0.1% year-on-year, primarily affected by price reductions from centralized procurement [1] - The interventional segment reported revenue of 1.100 billion yuan, a decline of 1.3% year-on-year, impacted by tariffs and new product promotion costs [1] - The orthopedic segment achieved revenue of 733 million yuan, down 1.6% year-on-year, but saw a significant profit increase of 74% due to stabilization post-centralized procurement [1] Development Trends - The company expects continued acceleration in the second half of 2025, with centralized procurement nearing its end and favorable rules emerging [1] - New product launches in the surgical product category are anticipated to benefit from centralized procurement and import substitution, with a 40% year-on-year increase in 1H25 [1] International Expansion - In 1H25, overseas revenue reached 1.624 billion yuan, a year-on-year increase of 4%, accounting for 24% of total revenue [2] - The company is transitioning from a foreign trade model to localized management and plans to shift production capacity back to China while establishing manufacturing in Southeast Asia [2] Financial Health - As of 1H25, the company had a net cash position of 3.43 billion yuan and operating cash flow of 880 million yuan [2] - The company maintains a 50% dividend payout ratio and invested 316 million yuan in R&D, representing 4.7% of revenue [2] Profit Forecast and Valuation - Due to unexpected price reductions from centralized procurement and foreign exchange losses, the company has lowered its net profit forecasts for 2025 and 2026 by 9.9% and 10.4%, respectively [2] - The current stock price corresponds to a price-to-earnings ratio of 11.6x for 2025 and 10.4x for 2026, with a target price of 6.40 HKD, implying an upside potential of 8.5% [2]
威高股份(01066.HK)：1H25业绩环比回升 新业务和国际化可期