Sinocare(SZ:300298) Huaan Securities·2025-09-10 07:58Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The blood glucose segment shows steady growth, and the expansion into the European market is progressing smoothly [5][6] - In the first half of 2025, the company achieved revenue of 2.264 billion yuan, a year-on-year increase of 6.12%, and a net profit attributable to shareholders of 181 million yuan, a year-on-year decrease of 8.52% [4][5] - The company’s continuous growth in the blood glucose monitoring market is attributed to its high market share and the increasing contribution from its Continuous Glucose Monitoring (CGM) products [5] Financial Performance - In H1 2025, the blood glucose monitoring system generated revenue of 1.659 billion yuan (+6.88%), while diabetes nutrition and care products generated 149 million yuan (+11.47%) [5] - The company’s domestic revenue was 1.266 billion yuan (+5.40%), and overseas revenue was 744 million yuan (+7.06%) in H1 2025 [6] - Revenue projections for 2025-2027 are 4.908 billion yuan, 5.530 billion yuan, and 6.130 billion yuan, with growth rates of 10.5%, 12.7%, and 10.9% respectively [7][10] - Net profit attributable to shareholders is expected to be 426 million yuan, 535 million yuan, and 666 million yuan for 2025-2027, with growth rates of 30.6%, 25.7%, and 24.4% respectively [8][10] Market Expansion - The company has expanded its CGM product registration to several countries, including Brazil, Iran, and Vietnam, and has received EU MDR certification for its second-generation glucose monitoring system [6] - The company is also progressing with its CGM product registration in the U.S., with plans for clinical trials for the second-generation product expected to start in 2026 [6]