Core Viewpoint - The company experienced a significant decline in revenue and net profit in 2024 due to macroeconomic conditions and industry policy impacts, but there are signs of recovery in 2025 with new product approvals and improved sales in various segments [1][2]. Group 1: Financial Performance - In 2024, the company reported revenue of 6.103 billion yuan, net profit attributable to shareholders of 247 million yuan, and net profit excluding non-recurring items of 221 million yuan, reflecting year-over-year declines of 23.5%, 80.4%, and 80.3% respectively [1]. - For Q1 2025, the company achieved revenue of 1.736 billion yuan, net profit attributable to shareholders of 379 million yuan, and net profit excluding non-recurring items of 337 million yuan, showing year-over-year declines of 9.7%, 21.4%, and 26.1% respectively, but with quarter-over-quarter improvements [1]. - The company expects a recovery in 2025 driven by new product approvals and a gradual restoration of its generic drug business [1]. Group 2: Business Segments - The structural heart disease segment showed strong performance with revenues of 3.326 billion yuan in 2024 and 904 million yuan in Q1 2025, marking year-over-year growth of 44.0% and 37.4% respectively [2]. - The pharmaceutical segment reported revenues of 1.758 billion yuan in 2024 and 595 million yuan in Q1 2025, with a year-over-year decline of 42.3% in 2024 but a significant quarter-over-quarter improvement of 111.4% in Q1 2025 [2]. - The medical services and health management segment generated revenues of 1.019 billion yuan in 2024 and 238 million yuan in Q1 2025, with year-over-year declines of 19.2% and 2.4% respectively, but is expected to improve with new product launches [2]. Group 3: Product Development - The company has expanded its product matrix, with several cardiovascular devices approved for market, including various catheter types and a biodegradable left atrial appendage occluder [3]. - In pharmaceuticals, the company is advancing its GLP-1 class products and has completed clinical trials for several key drugs, including a biosimilar for dulaglutide [3]. - Other product developments include continuous glucose monitoring systems and ongoing research in ophthalmology and dermatology [3]. Group 4: Profit Forecast and Valuation - The company anticipates net profits of 1.003 billion yuan, 1.156 billion yuan, and 1.331 billion yuan for 2025-2027, reflecting downward adjustments of 34% and 36% for 2025 and 2026 respectively [4]. - Given the diverse business layout and comprehensive sales channels, the company is assigned a 24x PE valuation for 2025, leading to a target price of 12.81 yuan [4].