Core Viewpoint - Haisong Medical (06078) issued a profit warning, expecting a significant decline in mid-term net profit by approximately 34% to 39% year-on-year, leading to a drop of over 5% in stock price [1] Financial Performance Summary - For the six months ending June 30, 2025, the company anticipates a revenue decrease of about 15% to 17% compared to the same period last year [1] - The expected net profit decline is projected to be around 34% to 39% year-on-year [1] - Adjusted net profit, according to non-International Financial Reporting Standards, is expected to decrease by approximately 32% to 37% compared to the previous year [1] - Operating cash flow is expected to improve by about 28% to 32% year-on-year [1] Industry Impact Summary - The decline in revenue and profit is primarily attributed to industry factors such as centralized procurement, DRG payment reforms, and macroeconomic influences [1] - The increase in depreciation and amortization from newly opened hospitals also contributed to the financial downturn [1]

Core Viewpoint - Hai Jiaya Medical (06078) issued a profit warning, leading to a decline of over 5% in its stock price, currently trading at HKD 15.22 with a transaction volume of HKD 52.01 million [1] Financial Performance Summary - For the six months ending June 30, 2025, the company expects a revenue decline of approximately 15% to 17% compared to the same period last year [1] - Net profit is anticipated to decrease by about 34% to 39% year-on-year [1] - Adjusted net profit, based on non-International Financial Reporting Standards, is projected to fall by around 32% to 37% compared to the previous year [1] - Cash generated from operating activities is expected to increase by approximately 28% to 32% year-on-year [1] Industry Impact Summary - The decline in revenue, net profit, and adjusted net profit is primarily attributed to industry factors such as centralized procurement, DRG payment reforms, and macroeconomic influences [1] - The increase in depreciation and amortization from newly opened hospitals also contributed to the financial downturn [1]

Group 1 - The company expects a revenue decline of approximately 15% to 17% and a net profit decline of about 34% to 39% for the six months ending June 30, 2025 compared to the same period last year [1] - The decrease in revenue and net profit is primarily due to industry impacts such as centralized procurement, DRG payment reform, macroeconomic influences, and increased depreciation from newly opened hospitals [1] - The company anticipates a decrease in trade receivables by approximately 10% to 11% and a reduction in total liabilities by about 4.5% to 5.5% as of June 30, 2025 [1] Group 2 - The company aims to enhance service processes to meet diverse health needs and improve patient satisfaction while maintaining a focus on operational efficiency and shareholder returns [2] - The company expresses confidence in the long-term development prospects of the industry and itself [2] - Capital expenditures are expected to decline by approximately 28% to 29% compared to the same period last year, while free cash flow is projected to significantly improve [1]

Group 1 - The core viewpoint of the article highlights the recent research conducted by a well-known private equity firm, Hongchou Investment, on a listed company, Anjisi, which is facing challenges due to US-China trade tariffs but remains optimistic about its annual targets [1] - Anjisi's sales revenue in North America is expected to decline slightly in the first half of 2025 due to trade tensions, while domestic sales revenue has increased by 10.50% [1] - The company's R&D expenses have surged by 90.73% year-on-year, primarily for the development of Hang'an medical diagnostic equipment, with a focus on the registration phase of reusable flexible endoscopes [1] Group 2 - Anjisi's gross profit margin for domestic sales has decreased to 67.58%, largely due to the impact of centralized procurement on hemostatic clips [1] - The ERCP product series is experiencing rapid growth, with single-pole ESD products currently being trialed in over 250 hospitals, achieving a 20% admission rate [1] - The company is enhancing its global presence through partnerships with top KOLs in Europe and the Asia-Pacific region, while its production base in Thailand is progressing steadily, focusing on mid-to-low-end consumables [1]

Core Insights - Six He Investment conducted a survey on a listed company, Anjisi, revealing confidence in annual targets despite a slight decline in North American sales due to US-China trade tariffs [1] - Anjisi's R&D expenses increased by 90.73% year-on-year, primarily for the development of Hang'an medical diagnostic equipment, with a soft endoscope entering the product registration phase [1] - Domestic sales revenue grew by 10.50%, although the gross margin decreased to 67.58% due to the impact of centralized procurement on hemostatic clips [1] Company Performance - Anjisi's ERCP product series is rapidly expanding, with single-pole ESD products trialed in over 250 hospitals and an admission rate of 20% [1] - The company's self-branded sales proportion is increasing, and it is collaborating with top KOLs in Europe and Asia-Pacific to deepen its global presence [1] - The Thai production base project is progressing steadily, with production costs higher than domestic levels, focusing on mid-to-low-end consumables [1] Regional Sales Insights - Sales revenue in Europe, Asia, and South America is growing, while North American sales are declining [1] - Multiple products are entering the product registration phase, indicating ongoing expansion efforts [1]

Group 1 - The core viewpoint of the news highlights that Shen Nong Investment has conducted research on a listed company, Anjiasi, which is facing challenges due to US-China trade tariffs but remains confident in achieving its annual targets [1] - Anjiasi's R&D expenses have increased by 90.73% year-on-year, primarily for the development of Hang'an medical diagnostic equipment, with a reusable soft endoscope entering the product registration phase [1] - Domestic sales gross margin has decreased to 67.58% due to the impact of centralized procurement on hemostatic clips, although domestic sales revenue has grown by 10.50% [1] Group 2 - The ERCP product series is experiencing rapid growth, with single-pole ESD products being trialed in over 250 hospitals and an admission rate of 20% [1] - The company's self-owned brand sales ratio is increasing, and it is collaborating with top KOLs in Europe and the Asia-Pacific region to deepen its global layout [1] - The Thai production base project is progressing steadily, with production costs higher than domestic levels, and future mid-to-low-end consumables will be concentrated in Thailand [1] Group 3 - Sales revenue in Europe, Asia, and South America is increasing, while North America is experiencing a decline, with multiple products entering the product registration phase [1]

Group 1 - The core viewpoint of the news is that Anjiasi is facing a slight decline in North American sales revenue due to Sino-US trade tariff friction, but the company remains confident in achieving its annual targets [1] - Research and development expenses have increased by 90.73% year-on-year, primarily for the development of Hang'an medical diagnostic equipment, with the reusable flexible endoscope entering the product registration phase [1] - Domestic sales gross margin has decreased to 67.58%, mainly due to the impact of centralized procurement on hemostatic clips, although domestic sales revenue has grown by 10.50% [1] Group 2 - The ERCP series products are rapidly gaining market traction, with single-pole ESD products being trialed in over 250 hospitals and an admission rate of 20% [1] - The proportion of self-owned brand sales is increasing, with collaborations with top KOLs in Europe and the Asia-Pacific region to deepen global expansion [1] - The Thai production base project is progressing steadily, with production costs higher than those in China, and future plans to concentrate mid-to-low-end consumables production in Thailand [1] Group 3 - Sales revenue in Europe, Asia, and South America is increasing, while North American sales are declining, with multiple products entering the product registration phase [1]

Summary of Conference Call Company and Industry - **Company**: Anjisi (安吉斯) - **Industry**: Medical Devices, specifically focusing on high-quality consumables and innovative medical equipment Key Points and Arguments Company Performance - In the first half of 2025, Anjisi reported a net profit attributable to shareholders of 126 million yuan, a year-on-year increase of 1.26% [3] - Earnings per share reached 1.56 yuan, up 0.87% year-on-year [3] - Total assets amounted to 2.646 billion yuan, with net assets of 2.427 billion yuan, both showing steady growth [3] Research and Development - R&D expenses totaled 34.45 million yuan, representing 11.39% of total revenue, an increase of 1.6 percentage points from the previous year [3] - R&D investment grew by 33.29% year-on-year, with the number of R&D personnel increasing by 47.24% to 187 [3] - Significant R&D advancements were made in various projects, including single-use robotic platforms and multi-modal imaging technologies [3] Sales Performance - Domestic sales revenue reached 137 million yuan, a year-on-year increase of 10.07% [4] - International sales totaled 163 million yuan, up 18.29% year-on-year, with 14 new overseas clients added [4] - The company faced challenges in the North American market, experiencing a nearly 10% decline due to trade tariffs [7][31] Cost Management - Management expenses rose by 32.65% to 31.9 million yuan, attributed to the rapid expansion of business [5] - Sales expenses decreased by 14.29% to 23.94 million yuan, primarily due to reduced domestic sales costs [5] - Financial income decreased by approximately 6.11 million yuan due to lower interest rates [5] Market Trends and Challenges - The ongoing healthcare policy reforms and the trend of centralized procurement are impacting sales dynamics [2] - The company is optimistic about the "anti-involution" policy introduced in July 2023, which is expected to benefit the medical industry [15] - Concerns were raised about potential price reductions and margin pressures in both domestic and international markets [9] Future Outlook - Anjisi aims to enhance its market presence through strategic channel development and product innovation [24][25] - The company plans to expand its self-operated channels in Europe, South America, and Asia [24] - Future R&D will focus on innovative medical devices, with several products expected to enter the registration phase by 2026-2027 [12] Profitability Insights - Domestic gross margin was reported at 67.14%, while overseas gross margin was higher at 77.27% [14] - The company is committed to maintaining a diverse pricing strategy across different market segments to sustain profitability [20] Conclusion - Anjisi is positioned for growth with a focus on innovation and market expansion, despite facing challenges from trade tariffs and market dynamics. The management remains optimistic about future performance and the potential benefits of recent policy changes [39]

Core Viewpoint - The company is entering a high growth phase in its neurosurgery business, driven by new product launches and the impact of centralized procurement [3][4]. Group 1: Business Development - Before 2023, the company experienced a phase of low revenue, heavily reliant on a single product, with a focus on R&D and gradual product approvals [3]. - Post-2023, the impact of centralized procurement on the company's main product has diminished, stabilizing the business, while new products like hemostatic gauze and dural glue are expected to drive rapid revenue growth [3][4]. - The company is strategically expanding into the neurointervention sector, which has low penetration and domestic production rates, through the acquisition of Easy Medical [3][4]. Group 2: Acquisition Insights - Concerns regarding the acquisition include potential dilution of profit margins and pricing issues related to related-party transactions, but the regulatory environment minimizes these risks [4]. - The acquisition is expected to enhance channel synergy between neurosurgery and neurointervention, significantly expanding the company's growth potential [4]. - The current low shareholding ratio of the controlling shareholder may be improved through this acquisition, strengthening control over the company [4]. Group 3: Financial Projections - The company maintains its profit forecast, expecting net profits of 110 million, 160 million, and 220 million yuan for 2025-2027, representing year-on-year growth rates of 43.8%, 39.0%, and 40.5% respectively [5]. - The estimated earnings per share (EPS) for the same period are projected to be 1.70, 2.36, and 3.32 yuan [5]. - A target price of approximately 90 yuan is set based on a 38x PE valuation for 2026, maintaining a "recommended" rating [5].

Core Viewpoint - The company is entering a high growth phase in its neurosurgery business, driven by new product launches and centralized procurement initiatives, while also strategically expanding into the neurointervention market through the acquisition of Easy Medical [1][2]. Group 1: Neurosurgery Business Growth - Before 2023, the company had a small revenue base, heavily reliant on a single product, with a focus on R&D and gradual product approvals, but lacked commercial capabilities [1]. - Post-2023, the impact of centralized procurement on the hard dura mater product has stabilized, and new products like hemostatic gauze and dural glue are successfully ramping up sales, contributing to rapid revenue growth [1]. - The company expects profit growth in the next two years due to economies of scale and a slowdown in expense growth, indicating a transition to a high growth profit phase [1]. Group 2: Acquisition of Easy Medical - The acquisition of Easy Medical is aimed at enhancing the company's presence in the high-potential neurointervention market, which has low penetration and domestic production rates [2]. - Concerns regarding the acquisition include potential short-term dilution of profit margins and pricing issues related to related-party transactions, but regulatory scrutiny reduces the likelihood of unreasonable pricing [2]. - The acquisition is expected to create synergies between neurosurgery and neurointervention channels, significantly expanding the company's growth potential [2]. Group 3: Financial Projections - The company maintains its profit forecasts, expecting net profits of 110 million, 160 million, and 220 million yuan for 2025-2027, representing year-on-year growth rates of 43.8%, 39.0%, and 40.5% respectively [3]. - Corresponding EPS for the same years are projected to be 1.70, 2.36, and 3.32 yuan, with a target price of approximately 90 yuan based on a 38x PE valuation for 2026 [3].