Aier(SZ:300015) HTSC·2025-08-27 05:27Investment Rating - The investment rating for the company is "Buy" with a target price of RMB 17.63 [1][5]. Core Views - The company has shown positive growth in its performance, with a revenue of RMB 11.507 billion in 1H25, representing a year-on-year increase of 9.1%. The net profit attributable to the parent company was RMB 2.051 billion, a slight increase of 0.1% year-on-year, while the net profit excluding non-recurring items was RMB 2.040 billion, up 14.3% year-on-year [1]. - The company's optical business has led the overall revenue growth in 1H25, with significant contributions from various segments, including myopia prevention and control, refractive surgery, and cataract surgery [3]. - The company is expanding its global service network, with domestic revenue reaching RMB 9.990 billion (up 8.1% year-on-year) and overseas revenue at RMB 1.517 billion (up 16.5% year-on-year) [4]. Summary by Sections Financial Performance - In 1H25, the company's gross margin was 48.6%, a decrease of 0.9 percentage points year-on-year. The sales, management, and R&D expense ratios were 9.1%, 13.5%, and 1.3%, respectively, indicating an improvement in promotional efficiency [2]. - The operating cash flow for 1H25 was RMB 3.402 billion, reflecting a 19.7% year-on-year increase, indicating a continuous improvement in cash flow levels [2]. Business Segments - The optical segment generated RMB 2.720 billion in revenue (up 14.7% year-on-year), driven by the brand influence and service quality in myopia prevention [3]. - The refractive surgery segment reported revenue of RMB 4.618 billion (up 11.1% year-on-year), supported by the introduction of new surgical techniques and an expanding service network [3]. - The cataract segment achieved revenue of RMB 1.781 billion (up 2.6% year-on-year), with an increasing proportion of high-end surgeries [3]. - Other projects, including anterior and posterior segment projects, generated revenues of RMB 1.031 billion and RMB 0.785 billion, respectively, with the latter showing a 9.0% year-on-year increase [3]. Market Position and Strategy - The company has a robust domestic service network with 355 hospitals and 240 outpatient departments as of 1H25, reflecting a strategic push in its "1+8+N" strategy [4]. - The overseas market presence is also growing, with 169 eye centers and clinics established, enhancing the company's global influence [4]. Profit Forecast and Valuation - The forecast for net profit attributable to the parent company for 2025-2027 is RMB 3.914 billion, RMB 4.436 billion, and RMB 5.069 billion, respectively, with adjustments reflecting a 7%-10% downward revision compared to previous estimates [5]. - The company is assigned a PE ratio of 42x for 2025, compared to the industry average of 38x, supporting the target price of RMB 17.63 [5].