YUYUE MEDICAL(SZ:002223) Yong Xing Zheng Quan·2025-08-28 11:03Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company has demonstrated robust performance with significant achievements in overseas expansion, achieving a revenue of 4.659 billion yuan in the first half of 2025, representing a year-on-year increase of 8.16% [1]. - The overseas sales reached 607 million yuan, marking a year-on-year growth of 26.63%, indicating that international business is becoming a crucial driver of performance [2]. - The company is focusing on three core areas: respiratory and oxygen therapy, blood glucose and POCT, and disinfection and infection control, with rapid growth in overseas business expected to unlock further growth potential [4]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved a net profit attributable to shareholders of 1.203 billion yuan, up 7.37% year-on-year, while the non-recurring net profit was 914 million yuan, down 5.22% year-on-year [1]. - The gross profit margin improved by 0.37 percentage points to 50.37%, benefiting from effective cost management and a mature supply chain [3]. Product Performance - Revenue from respiratory treatment solutions was 1.674 billion yuan, a year-on-year increase of 1.93%, with home respiratory machine products seeing growth rates exceeding 40% [2]. - Blood glucose management and POCT solutions generated 674 million yuan, up 20.00% year-on-year, with CGM business experiencing rapid growth [2]. - Home health monitoring solutions brought in 1.014 billion yuan, reflecting a year-on-year growth of 15.22%, with electronic blood pressure monitors showing double-digit growth [2]. Innovation and R&D - The company is actively embracing technological advancements, applying AI and other cutting-edge technologies in product development and operational management, focusing on digitalization and wearability [3]. - R&D investment in the first half of 2025 was 295 million yuan, a year-on-year increase of 9.44%, with several important innovative products receiving registration and being launched [3]. Future Projections - The projected net profits for 2025, 2026, and 2027 are 2.010 billion yuan, 2.262 billion yuan, and 2.581 billion yuan, respectively, with year-on-year growth rates of 11.3%, 12.5%, and 14.1% [4].