GOODWILL(SH:688246) HTSC·2025-08-29 08:10Investment Rating - The investment rating for the company is "Buy" with a target price of RMB 44.48 [7][8]. Core Views - The company reported a significant decline in revenue and net profit for the first half of 2025, primarily due to deferred customer demand, delayed bidding processes, tightened hospital budgets, and increased competition [1]. - Despite the current challenges, the company is expected to benefit from AI-driven demand in the healthcare sector, which may enhance its value proposition [1]. - The company maintains a strong focus on R&D, with R&D expenses accounting for 43.36% of revenue in the first half of 2025, indicating a commitment to enhancing its technological capabilities [2]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved revenue of RMB 2.19 billion, a year-on-year decrease of 27.22%, and a net profit attributable to shareholders of -RMB 1.16 billion, compared to -RMB 0.27 billion in the same period last year [1][12]. - The gross margin for the first half of 2025 was 20.52%, down 27.51 percentage points year-on-year, attributed to extended project delivery cycles and increased cost pressures [2]. Product Development - The company has launched a new generation of intelligent electronic medical record platforms (V7) that integrate AI capabilities, enhancing efficiency and quality in medical documentation [3]. - The company is actively upgrading its data center products to a multi-modal intelligent platform, improving data governance and operational efficiency through AI [4]. Market Position and Outlook - The company is ranked first in the electronic medical record segment for 2024, marking its 11th consecutive year at the top of the market [2]. - Profit forecasts for the company indicate a gradual recovery, with expected net profits of RMB 0.44 billion, RMB 1.02 billion, and RMB 1.91 billion for 2025, 2026, and 2027, respectively [5][11].