MTM(SH:688029) HTSC·2025-10-28 09:07Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 106.48 [1][4]. Core Views - The company's revenue and net profit for the first nine months of 2025 were RMB 2.381 billion and RMB 509 million, respectively, showing year-on-year growth of 18.3% and 12.9%. The revenue for Q3 2025 was RMB 815 million, with a year-on-year increase of 20.1, while net profit growth was slower due to a decline in gross margins for some products. The outlook remains positive for overseas performance and domestic improvements due to the "anti-involution" expectations in centralized procurement [1][2][4]. Summary by Sections Financial Performance - For 9M25, the company reported a gross margin of 64.55%, down 3.09 percentage points year-on-year, primarily due to lower margins from centralized procurement of certain products. The sales, management, R&D, and financial expense ratios were 21.81%, 12.74%, 5.62%, and -3.03%, respectively, with the financial expense ratio decreasing significantly due to increased foreign exchange gains [3][4]. Business Expansion - The company completed the acquisition of 51% of Creo Medical S.L.U. in February 2025, marking a significant step in expanding its presence in the European market. The Thailand manufacturing center is set to commence production by the end of the year, enhancing the global supply chain. The domestic sales team is adapting to market pressures, and the "anti-involution" principle in centralized procurement is expected to alleviate pricing pressures on the company's products, leading to marginal improvements in domestic performance [2][4]. Earnings Forecast - The forecast for net profit attributable to the parent company for 2025-2027 is RMB 638.94 million, RMB 769.31 million, and RMB 917.35 million, respectively, reflecting year-on-year growth rates of 15.49%, 20.40%, and 19.24%. The expected EPS for the same period is RMB 3.40, RMB 4.10, and RMB 4.88 [4][9].