Tianfeng Securities·2025-10-19 08:42Industry Investment Rating - The report maintains an investment rating of "Outperform" for the orthopedic consumables sector [2]. Core Insights - The orthopedic consumables sector experienced significant performance improvement in H1 2025, with a positive trend in overseas expansion and accelerated corporate layouts [3][5]. - The overall revenue of the A-share orthopedic consumables sector increased by 16% year-on-year in H1 2025, with net profit attributable to shareholders rising by 70% and non-recurring net profit increasing by 75% [5][11]. - The gross profit margin for the sector was 66% in H1 2025, reflecting a year-on-year increase of 1.95 percentage points, attributed to ongoing cost control and optimization [5][11]. - The report highlights a favorable trend in overseas business, which is expected to become a significant growth driver for companies in the sector [5][35]. Summary by Sections 1. Orthopedic Consumables H1 2025 Report Analysis - The orthopedic consumables sector saw a revenue increase of 16.24% in H1 2025, with a gross profit margin of 66.07% [9][11]. - The second quarter of 2025 showed a revenue growth of 23% year-on-year, with net profit growth of 84% [11]. 2. Segment Analysis - The joint business segment benefited from the implementation of centralized procurement policies, leading to a sustained increase in both volume and price for leading companies [22]. - The spinal segment is experiencing stable execution of centralized procurement, with significant room for domestic companies to increase market share [29]. 3. Related Company Summaries - Dabo Medical: Achieved a revenue of 12.1 billion yuan in H1 2025, a year-on-year increase of 25.55%, with a net profit of 2.44 billion yuan, up 76.69% [41]. - Weigao Orthopedics: Reported a revenue of 7.41 billion yuan in H1 2025, a slight decrease of 1.28%, but net profit increased by 52.43% [57]. - Aikang Medical: Generated a revenue of 6.94 billion yuan in H1 2025, reflecting a growth of 5.65% year-on-year [47]. - Chunli Medical: Recorded a revenue of 4.88 billion yuan in H1 2025, up 28.27% year-on-year [52]. - Sanyou Medical: Achieved a revenue of 2.50 billion yuan in H1 2025, a year-on-year increase of 17.77% [61].