Zhende Medical(SH:603301) Huachuang Securities·2025-09-30 08:44Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 58 yuan [2][7]. Core Views - The company's H1 2025 revenue reached 2.1 billion yuan, a year-on-year increase of 2.83%, while the net profit attributable to shareholders decreased by 20.70% to 128 million yuan [2][7]. - The domestic retail business is under pressure, but overseas operations are steadily improving, with overseas revenue growing by 13% to 1.292 billion yuan in H1 2025 [2][7]. - The company is focusing on optimizing its product mix and enhancing market penetration, with its products covering nearly 9,200 hospitals across China [2][7]. Financial Performance - H1 2025 revenue breakdown: Surgical infection control revenue was 900 million yuan (+14%), basic care revenue was 430 million yuan (-23%), stoma and modern wound care revenue was 390 million yuan (+17%), and pressure treatment and fixation revenue was 230 million yuan (-4%) [2][7]. - The company expects net profits for 2025-2027 to be 400 million, 450 million, and 530 million yuan respectively, with corresponding P/E ratios of 29, 26, and 22 [3][7]. Market Position - The domestic hospital line revenue was 533 million yuan (+1%), while the retail line revenue was 214 million yuan (-37%) in H1 2025 [2][7]. - The company has implemented a "721" product focus strategy to enhance sales efficiency, achieving a 99% coverage rate in top 100 chain pharmacies across China [2][7]. Future Outlook - The report projects steady revenue growth with a forecasted total revenue of 4.264 billion yuan in 2024, increasing to 6.120 billion yuan by 2027, reflecting a compound annual growth rate of 14.7% [3][8]. - The company is actively expanding its global footprint, particularly in Southeast Asia, the Middle East, and Africa, to mitigate geopolitical risks and enhance its overseas business [2][7].