Eyebright Medical(SH:688050) Haitong Securities International·2025-11-05 14:17Investment Rating - The investment rating for the company has been downgraded to a neutral rating [1][4][11]. Core Insights - In the first three quarters of 2025, the company achieved revenue of RMB 1.14 billion, representing a year-on-year growth of 6.43%. However, the net profit attributable to shareholders was RMB 290 million, reflecting a year-on-year decline of 8.64%. The gross profit margin (GPM) was 64.80%, down by 2.81 percentage points, and the net profit margin (NPM) was 24.35%, down by 3.93 percentage points [4][11]. - The company's Q3 revenue was RMB 358 million, a year-on-year decline of 8.17%, with a net profit attributable to shareholders of RMB 77 million, down 29.85% year-on-year [12][13]. - The decline in net profit is attributed to decreased revenue from intraocular lenses and contact lenses, as well as increased promotion of the company's own-brand contact lenses [13][14]. Financial Summary - The company's total revenue for 2023 is projected at RMB 951 million, with a growth rate of 64.1%. For 2024, revenue is expected to reach RMB 1.41 billion, a growth of 48.2%. By 2025, revenue is estimated at RMB 1.57 billion, reflecting an 11.6% increase [3][5]. - The net profit attributable to shareholders for 2023 is projected at RMB 304 million, with a growth of 30.6%. For 2024, it is expected to be RMB 388 million, a growth of 27.8%, and for 2025, it is estimated at RMB 390 million, showing a minimal growth of 0.5% [3][5]. - The earnings per share (EPS) for 2023 is projected at RMB 1.57, increasing to RMB 2.01 in 2024 and RMB 2.02 in 2025 [3][5]. Expense Ratios - In Q3, the sales expense ratio was 18.08%, an increase of 6.83 percentage points year-on-year. The general and administrative (G&A) expense ratio was 14.26%, up by 3.08 percentage points. The research and development (R&D) expense ratio was 5.99%, down by 1.83 percentage points, while the finance expense ratio was 1.55%, an increase of 0.31 percentage points [13][14]. Market Conditions - The revenue and sales of intraocular lenses have decreased due to centralized procurement and adjustments in provincial medical insurance spending. The contact lens segment has been impacted by market conditions, leading to declining terminal prices and increased competition from domestic capacity expansion, which has reduced factory prices and profit margins [14].