YUYUE MEDICAL(SZ:002223) Ping An Securities·2025-10-28 12:02Investment Rating - The report maintains a "Strong Buy" rating for Yuyue Medical (002223.SZ), expecting the stock to outperform the market by over 20% within the next six months [14]. Core Views - Yuyue Medical is experiencing steady growth in revenue, with a year-on-year increase of 8.58% in the first three quarters of 2025, achieving a total revenue of 6.545 billion yuan. However, net profit has decreased by 4.28% year-on-year to 1.466 billion yuan due to increased strategic investments [5][9]. - The company is focusing on expanding its global sales network and enhancing its product offerings, particularly in continuous glucose monitoring (CGM) and sleep respiratory devices, which are expected to drive future growth [9][10]. - The report highlights the company's commitment to R&D and brand building, which is anticipated to lay a solid foundation for long-term growth [9]. Summary by Sections Financial Performance - In Q3 2025, Yuyue Medical reported a revenue of 1.886 billion yuan, a year-on-year increase of 9.63%, but net profit fell by 35.99% to 263 million yuan due to increased expenses [5][9]. - The company plans to distribute a cash dividend of 2.0 yuan per 10 shares to all shareholders [5]. Revenue and Profit Forecast - Revenue projections for 2025-2027 are adjusted to 1.91 yuan, 2.26 yuan, and 2.66 yuan per share, respectively, reflecting the company's ongoing investments in new product launches and global expansion [10]. Strategic Initiatives - Yuyue Medical is actively investing in R&D, particularly in digital and wearable products, and is enhancing its talent acquisition to support innovation [9]. - The company is also focusing on building a comprehensive brand around its CGM products, which is expected to increase market share and create new business growth points [9][10]. Market Expansion - The overseas business has shown rapid growth, particularly in Southeast Asia, Europe, North America, and South America, with plans to explore opportunities in the Middle East, Africa, and the CIS [10].