Sinocare(SZ:300298) GOLDEN SUN SECURITIES·2025-09-08 03:25Investment Rating - The investment rating for the company is "Buy" [7] Core Views - The company has shown significant improvement in revenue for Q2 2025, with a year-on-year growth of 9.17% to reach 12.22 billion yuan, although net profit declined by 6.87% [1][2] - The company is actively expanding its overseas localization efforts, establishing subsidiaries and local sales teams in key countries, which enhances its global service capabilities [2][3] - The Continuous Glucose Monitoring (CGM) market entry is progressing well, particularly in Europe, with successful collaborations and product approvals [4] Financial Performance Summary - For H1 2025, the company reported revenue of 22.64 billion yuan, a 6.12% increase year-on-year, while net profit was 1.81 billion yuan, down 8.52% [1] - The gross margin for Q2 2025 was 54.56%, reflecting a decrease of 4.60 percentage points year-on-year, influenced by increased market competition and rising costs [2] - The company’s revenue by region for H1 2025 included domestic revenue of 12.66 billion yuan (up 5.40%), U.S. revenue of 7.44 billion yuan (up 7.06%), and other regions contributing 2.54 billion yuan (up 7.05%) [3] Future Projections - Revenue projections for 2025-2027 are estimated at 49.26 billion yuan, 54.83 billion yuan, and 61.25 billion yuan, with year-on-year growth rates of 10.9%, 11.3%, and 11.7% respectively [4] - Expected net profit for the same period is projected to be 4.19 billion yuan, 5.30 billion yuan, and 6.52 billion yuan, with growth rates of 28.3%, 26.6%, and 23.0% respectively [4]