Well Lead(SH:603309) Huaan Securities·2025-10-22 05:39Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company reported revenue, net profit attributable to shareholders, and net profit excluding non-recurring items for the first three quarters of 2025 at 1.191 billion, 192 million, and 184 million yuan respectively, representing year-on-year growth of 12.33%, 14.94%, and 15.22% [5] - In Q3 2025, the company's revenue, net profit attributable to shareholders, and net profit excluding non-recurring items were 446 million, 71 million, and 67 million yuan respectively, with year-on-year growth of 16.09%, 16.31%, and 13.17% [5] - The overall performance of the company is in line with expectations, continuing its stable business style [5] Summary by Sections Domestic and Overseas Market Performance - The domestic market growth rate improved significantly in Q3 2025, with revenue reaching 446 million yuan, a year-on-year increase of approximately 16.09%, compared to 12.60% and 8.16% in Q1 and Q2 respectively [6] - The overseas market remains a key growth driver, with ongoing construction of factories in Indonesia and Mexico aimed at serving North and South American clients, with the Indonesian factory expected to commence production in Q1 next year [6] Profitability and Product Mix - The company's gross margin in Q3 2025 was approximately 42.75%, and the net profit margin was about 16.31%, compared to 44.32% and 16.03% in Q3 2024 [7] - The decline in gross margin is attributed to lower average factory prices and a decrease in average gross margin from domestic operations, while the net profit margin remains high due to an increase in the proportion of high-margin products like silicone catheters and stone retrieval sheaths [7] - The company is shifting its product mix from low-value consumables to mid and high-value consumables, with a focus on high-margin products in its pipeline [7] Financial Projections - Revenue projections for 2025-2027 are 1.779 billion, 2.073 billion, and 2.426 billion yuan, with growth rates of 17.9%, 16.6%, and 17.0% respectively [8] - Net profit attributable to shareholders for the same period is projected to be 267 million, 318 million, and 384 million yuan, with growth rates of 21.5%, 19.1%, and 20.9% respectively [8] - The corresponding P/E ratios for 2025-2027 are expected to be 15x, 12x, and 10x [8]