Core Viewpoint - The report highlights that Oupankangshi (300595) is facing short-term performance pressure but is building long-term competitiveness through its "full vision" strategy, maintaining a buy rating for the stock [1]. Financial Performance - In H1 2025, the company achieved revenue of 871 million yuan, a year-over-year decrease of 1.42%, and a net profit attributable to shareholders of 250 million yuan, down 22.93% [1]. - In Q2 2025, revenue was 392 million yuan, a decline of 6.27%, with a net profit of 90 million yuan, down 31.74% [1]. - The company's gross margin was 73.16%, a decrease of 0.61 percentage points, primarily due to a decline in high-margin hard lens product revenue [2]. Cost and Profitability Analysis - The increase in expenses and non-operating impacts have pressured profitability, with the net profit margin dropping to 28.71%, down 8.02 percentage points [2]. - The rise in sales expense ratio was attributed to increased labor costs and promotional expenses, while the management expense ratio increased mainly due to a rise in equity incentive costs [2]. Product Performance - The revenue from hard lenses decreased by 4.58% to 356 million yuan, affected by weak high-end consumption and increased competition [3]. - Revenue from other optical products, including frame glasses, increased by 16.18% to 187 million yuan, driven by the growth in functional frame glasses and non-medical technical service income [3]. Strategic Developments - The "full vision" product strategy is gradually being implemented, with new products like the DreamVision SL scleral lens and the DK=185 high oxygen permeability orthokeratology lens expected to drive future growth [4]. - The company is set to launch a composite functional frame lens that utilizes defocus and contrast dual control technology [4]. Earnings Forecast - The company is projected to have earnings per share (EPS) of 0.69 yuan, 0.78 yuan, and 0.93 yuan for the years 2025, 2026, and 2027, respectively [4]. - The average target price from institutions over the past 90 days is 19.2 yuan, with two buy ratings and one hold rating [6].

Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, indicating challenges in the high-end consumer market and increased competition in its core business [1][2]. Financial Performance - In the first half of 2025, the company achieved revenue of 871 million yuan, a decrease of 1.42% year-on-year, and a net profit attributable to shareholders of 250 million yuan, down 22.93% [1]. - For Q2 2025, the company reported revenue of 392 million yuan, a decline of 6.27%, and a net profit of 90 million yuan, down 31.74% [1]. Business Segment Analysis - Corneal reshaping lenses generated revenue of 356 million yuan, down 4.58% due to weak high-end consumption and increased competition [2]. - Medical services revenue was 173 million yuan, a decrease of 9.20%, primarily due to a decline in income from consolidated medical institutions [2]. - Nursing products revenue was 109 million yuan, down 6.89%, attributed to promotional activities affecting total sales [2]. - Non-optometry revenue increased by 14.90% to 40 million yuan [2]. - Revenue from other optical products, including frame glasses, rose by 16.18% to 187 million yuan, driven by increased sales of functional frame glasses and non-medical technical services [2]. Product Development - The company is expanding its product line with the launch of the "DreamVision SL" scleral contact lens and new generation corneal reshaping lenses (DV185 and AP185), which are expected to enhance market competitiveness [3]. - The new lens materials, OVCTEK200, have a leading oxygen permeability coefficient, positioning the company favorably in the market [3]. - Additional new products launched include eye care lamps, self-produced lutein, saline solutions for contact lenses, and mist sprays [3]. Profit Forecast and Investment Rating - Due to the ongoing challenges in the high-end consumer market, the company's net profit forecasts for 2025-2027 have been revised downwards to 603 million, 681 million, and 730 million yuan, respectively [3]. - The corresponding price-to-earnings ratios are projected to be 29, 25, and 24 times based on the current market value [3]. - Despite the challenges, the continuous expansion of the product line is expected to support a return to stable growth, maintaining a "buy" rating [3].