Eyebright Medical(SH:688050) Guoxin Securities·2025-09-11 12:00Investment Rating - The investment rating for the company is "Outperform the Market" [5][24]. Core Views - The company has shown rapid growth in high-end artificial lens products, with a significant increase in quarterly profits, achieving a record high since its listing [1][8]. - Despite challenges from macroeconomic conditions and industry policies, the company has maintained steady revenue growth, although net profit growth has lagged behind revenue growth due to lower margins from certain products [1][8]. - The company is the first domestic manufacturer to independently develop high-end refractive artificial lenses, with a well-established myopia prevention product line and significant potential for platform and international development [24]. Financial Performance - In the first half of 2025, the company achieved revenue of 787 million (up 14.72%) and a net profit of 213 million (up 2.53%), with a record quarterly net profit of 121 million in Q2, reflecting a 30.46% increase quarter-on-quarter [1][8]. - The gross profit margin for the first half of 2025 was 65.25%, impacted by a higher proportion of lower-margin products, while the net profit margin improved to 27.26% in Q2 [3][19]. - The company’s operating cash flow remained healthy, with a net cash flow from operating activities of 154 million (up 26.43%) in the first half of 2025 [19]. Business Segments - Revenue from artificial lenses reached 345 million (up 8.23%), with high-end products like "Longjing" and "All-View" lenses seeing rapid growth [2][14]. - The myopia prevention product line, particularly the "Punotong" corneal shaping lens, generated 119 million (up 5.63%), maintaining sales growth amid increased competition [2][14]. - The contact lens segment reported revenue of 236 million (up 28.89%), driven by the expansion of self-branded sales channels [2][14]. Future Outlook - The company has revised its profit forecasts for 2025-2027, now expecting net profits of 427 million, 520 million, and 627 million, respectively, with year-on-year growth rates of 10.0%, 21.7%, and 20.5% [24]. - The current stock price corresponds to a price-to-earnings ratio (PE) of 35.9, 29.5, and 24.4 for the years 2025, 2026, and 2027, respectively [24].