IMEIK(SZ:300896) Xin Lang Cai Jing·2025-10-09 08:29Core Insights - The company reported a significant decline in revenue and net profit for the first half of 2025, with total revenue at 1.299 billion and net profit at 789 million, reflecting year-on-year decreases of 21.6% and 29.6% respectively [1] - The acquisition of 85% of South Korean REGEN marks a strategic shift towards becoming a global player, contributing positively to short-term earnings and addressing capacity constraints [2] - The company is investing heavily in R&D, with a notable increase in R&D expense ratio, indicating a strong pipeline of innovative products [3] Financial Performance - Total revenue for H1 2025 was 1.299 billion, down 21.6% year-on-year, with net profit at 789 million, down 29.6% [1] - Q2 2025 revenue was 636 million, a decrease of 25.1% year-on-year, with net profit at 346 million, down 41.8% [1] - Gross margin slightly declined to 93.4%, while net margin decreased to 60.9% [1] Product Performance - Revenue from injectable solutions was 744 million, down 23.8%, accounting for 57.3% of total revenue [1] - Revenue from gel injectables was 493 million, down 24.0% [1] - Revenue from freeze-dried powder injectables was 19.47 million, and from facial implant line products was 3.32 million, down 4.6% [1] Strategic Initiatives - The acquisition of REGEN is expected to unlock production capacity and enhance profitability, with REGEN's products already contributing to net profit [2] - REGEN's established international distribution network is anticipated to facilitate the company's global expansion [2] - The company is focusing on developing new products, including botulinum toxin and recombinant proteins, to ensure sustainable growth [3] Future Outlook - The company forecasts net profits of 1.62 billion, 2.04 billion, and 2.35 billion for 2025-2027, reflecting adjustments based on mid-year performance [4] - The target valuation for 2026 is set at 652 billion, with a target price of 215.56, maintaining a "recommended" rating [4]