JAFRON(SZ:300529) Xin Lang Cai Jing·2025-10-30 06:45Core Viewpoint - The company experienced a significant decline in revenue and net profit in the first three quarters of 2025, attributed to inventory management and price adjustments, but maintains a positive long-term growth outlook due to increasing market penetration and product promotion efforts [1][2][3]. Financial Performance - Revenue for 1-3Q25 was 1.556 billion yuan, down 29.1% year-on-year, with a net profit of 453 million yuan, down 42.7% year-on-year [1]. - In 3Q25, revenue was 422 million yuan, a decrease of 39.8% year-on-year, and net profit was 63.51 million yuan, down 73.4% year-on-year [1]. Cost Structure and Efficiency - The gross margin for 1-3Q25 was 79.6%, a decrease of 1.7 percentage points year-on-year, likely due to changes in product sales structure [2]. - The sales, management, and R&D expense ratios were 24.6%, 7.4%, and 9.4%, respectively, with year-on-year increases of 1.4, 1.5, and 1.5 percentage points, reflecting a focus on long-term development despite short-term revenue declines [2]. Product Development and Market Position - The company remains optimistic about the long-term development of its core products, particularly blood purification devices, despite a decline in revenue due to various factors [3]. - As of 1H25, the company had over 6,000 and 2,000 hospital covers for its kidney and liver products, respectively, indicating strong market presence [3]. - Clinical recognition of the company's products is expected to improve with new guidelines and consensus from industry experts [3]. Business Expansion and New Opportunities - The company is actively expanding into new fields, including critical care and blood purification equipment, with over 1,800 and 2,000 hospitals covered by its respective products as of 1H25 [4]. - The company has also expanded its international presence, with products available in over 98 countries and regions, and received CE certification for its Future F20 blood purification device [4]. Profit Forecast and Valuation - The company expects net profits of 551 million, 607 million, and 668 million yuan for 2025-2027, with downward adjustments of 34%, 36%, and 38% compared to previous estimates [5]. - The company is considered a leader in the domestic blood purification industry, with a target price of 25.09 yuan based on a 33x PE valuation for 2026 [5].