WONDFO BIOTECH(SZ:300482) KAIYUAN SECURITIES·2025-08-21 03:13Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's revenue for H1 2025 was 1.246 billion yuan, a year-over-year decrease of 20.92%, with a net profit attributable to shareholders of 189 million yuan, down 46.82% year-over-year. In Q2 2025, revenue was 445 million yuan, a decline of 37.64%, and net profit was 6,350 yuan, down 99.95% year-over-year [4][5] - The increase in expense ratios is attributed to a decline in revenue base, with sales expense ratio at 25.6% (+5.38 percentage points), management expense ratio at 7.34% (+0.52 percentage points), and R&D expense ratio at 13.99% (+1.46 percentage points). The gross margin was 62.87% (-1.47 percentage points) and net margin was 15.27% (-7.48 percentage points) due to industry policy adjustments affecting terminal testing volume and pricing [4][5] - The company has adjusted its profit forecasts for 2025-2027, expecting net profits of 428 million, 499 million, and 600 million yuan respectively, with corresponding EPS of 0.89, 1.04, and 1.25 yuan. The current stock price corresponds to P/E ratios of 26.1, 22.3, and 18.6 times for the respective years [4][5] Summary by Sections Financial Performance - In H1 2025, the infectious disease business generated 379 million yuan (down 21.14% year-over-year), primarily due to lower respiratory disease prevalence and medical load. Chronic disease management testing revenue was 563 million yuan (down 26.06% year-over-year) due to policy adjustments affecting terminal demand [5] - Drug testing revenue increased to 145 million yuan (up 4.26% year-over-year), supported by localized operations and channel expansion, with the U.S. Amazon platform ranking first in sales [5] - The company continues to enhance its product offerings and expand into international markets, with significant growth in overseas revenue, particularly in Europe, Asia, and Latin America [6] Market Strategy - The company is focusing on developing markets, establishing subsidiaries in Russia and the Philippines in H1 2025. The introduction of chemiluminescence products is aimed at penetrating the mid-to-high-end market, with rapid growth in overseas installations [6] - In the U.S. market, the company received FDA 510(k) approval for a COVID-19 and flu testing product in January 2025, which is expected to drive revenue growth through comprehensive sales channel coverage [6]