Zhende Medical(SH:603301) Xinda Securities·2025-09-08 07:31Investment Rating - The investment rating for the company is not explicitly stated in the provided documents, but the analysis suggests a positive outlook based on revenue growth and improving profitability metrics. Core Viewpoints - The company is experiencing steady growth in overseas operations, with a significant increase in revenue from international markets, which reached 1.29 billion yuan in H1 2025, a year-on-year increase of 13.34% [2] - Domestic retail operations are under pressure, with a notable decline in revenue, but there are expectations for recovery as the company focuses on core products and optimizes its product strategy [2] - The company's profitability has been impacted by exchange rate fluctuations and increased costs, but there are signs of improvement in the second quarter of 2025, with a sales net profit margin of 7.06% [2] - Revenue projections for 2025-2027 indicate a positive growth trajectory, with expected revenues of 46.17 billion, 53.36 billion, and 61.99 billion yuan, respectively, and corresponding net profits of 3.90 billion, 5.19 billion, and 6.42 billion yuan [2] Summary by Sections Financial Performance - In H1 2025, the company achieved total revenue of 2.1 billion yuan, a year-on-year increase of 2.83%, with a net profit of 128 million yuan, down 20.70% year-on-year [1] - The second quarter of 2025 saw revenue of 1.11 billion yuan, reflecting a year-on-year increase of 2.79% [1] - The company's sales net profit margin for H1 2025 was 6.22%, a decrease of 1.97 percentage points year-on-year, primarily due to exchange rate losses and increased expenses [2] Revenue Growth - The company is focusing on globalizing its supply chain and enhancing overseas production capabilities, which is expected to drive future revenue growth [2] - The domestic market's hospital line revenue was stable at 533 million yuan, while the retail line saw a significant decline of 37.07% year-on-year [2] - Product categories such as surgical infection control and modern wound dressings are experiencing robust growth, with respective revenues of 904 million yuan and 390 million yuan, reflecting year-on-year increases of 14.19% and 17.83% [2] Profitability Outlook - The company anticipates continued improvement in profitability as high-margin products gain a larger share of revenue and as overseas production efficiencies are realized [2] - Earnings per share (EPS) are projected to increase from 1.46 yuan in 2025 to 2.41 yuan in 2027, with corresponding price-to-earnings (P/E) ratios decreasing from 17.26 to 10.47 [3]