Sinocare(SZ:300298) Changjiang Securities·2025-09-09 14:49Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company's performance met expectations, with a significant quarter-on-quarter revenue increase in Q2 2025. The total revenue for the first half of 2025 was 2.264 billion yuan, a year-on-year increase of 6.12%. The revenue from blood glucose monitoring systems was 1.659 billion yuan, up 6.88% year-on-year. However, the net profit attributable to the parent company decreased by 8.52% year-on-year due to increased market deployment of blood glucose monitoring devices by its U.S. subsidiary Trividia, which led to a decline in product gross margin, along with increased foreign exchange losses and management expenses [5][9]. Summary by Sections Financial Performance - In the first half of 2025, the company reported a revenue of 2.264 billion yuan, with a net profit of 181 million yuan, down 8.52% year-on-year. The second quarter revenue was 1.222 billion yuan, a year-on-year increase of 9.17%, while the net profit for the quarter was 109 million yuan, down 6.87% year-on-year [5][9]. Market Expansion - The company continues to deepen its overseas market presence, achieving overseas revenue of 997 million yuan in the first half of 2025, a year-on-year increase of 7.06%, accounting for 44.06% of total revenue. The company has established long-term strategic partnerships and has localized operations in various regions, including Europe, North America, and Southeast Asia [9]. Product Development - The Continuous Glucose Monitoring (CGM) product line is identified as the company's second growth curve, with the "Sanofi Aikan" glucose monitoring system approved in 39 countries and regions, including the EU. The company has formed deep partnerships in the European market and is expanding its presence in Southeast Asia and other regions through local distributors and e-commerce platforms [9]. Profit Forecast - The company is projected to achieve net profits of 388 million yuan, 484 million yuan, and 611 million yuan for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 31, 25, and 20 times [9].