Endovastec(SH:688016) EBSCN·2025-12-19 08:41Investment Rating - The report maintains a "No Rating" status for the company [5] Core Insights - Domestic business is progressing steadily while international business is experiencing rapid growth. The subsidiary Lombard is expected to turn profitable this year. The company's gross margin is anticipated to recover to over 70% for the year, driven by improved production efficiency and a domestic raw material utilization rate exceeding 85% [1] - In Q3 2025, revenue grew by 64.68% year-on-year, primarily due to a low base effect from the previous year. However, profit declined year-on-year mainly due to product price adjustments. The overseas business has become a significant growth driver, with revenue growth exceeding 65% in the first three quarters, accounting for 18% of total revenue, and an overall gross margin of 50% for international operations [1] - The R&D pipeline is progressing steadily, with several key products expected to be launched soon. The Hector thoracic aortic multi-branch stent system has successfully completed its first clinical implantation in November, and other products are on track for approval within the next year [2] Financial Forecasts and Valuation - The company is a leader in the domestic aortic and peripheral intervention fields. Revenue in Q3 2025 achieved high growth from a low base, with ongoing expansion in overseas and peripheral businesses. The net profit forecasts for 2025 and 2026 have been adjusted downwards to 633 million and 705 million yuan respectively, with a new forecast for 2027 at 848 million yuan. The net profit growth rates for 2025 to 2027 are projected at 26.0%, 11.4%, and 20.3% respectively. The current stock price corresponds to a PE ratio of approximately 16 times for 2026 [3][4]