Core Viewpoint - The company reported its 1H25 performance, showing a revenue of 714 million yuan, a year-on-year decrease of 9.2%, but a quarter-on-quarter increase of 70.4%. The net profit attributable to shareholders was 315 million yuan, down 22.0% year-on-year, but up 219.2% quarter-on-quarter, aligning with expectations [1]. Financial Performance - 1H25 revenue was 714 million yuan, with a year-on-year decline of 9.2% and a quarter-on-quarter increase of 70.4% [1]. - The net profit attributable to shareholders was 315 million yuan, reflecting a year-on-year decrease of 22.0% and a quarter-on-quarter increase of 219.2% [1]. Business Development Trends - The aortic stent business showed significant stabilization, with 1H25 revenue of 514 million yuan. The company anticipates continued recovery in domestic aortic business due to the clearance of price reduction impacts and improved expectations regarding centralized procurement [2]. - Peripheral and other revenues reached 200 million yuan, maintaining a growth trend, with expectations of continued benefits from centralized procurement in the second half of 2025 and beyond [2]. - The company plans to distribute a cash dividend of 13.00 yuan per 10 shares, totaling 157 million yuan (including tax) [2]. International Expansion - 1H25 overseas sales revenue was 123 million yuan, a year-on-year increase of 95.22%, with the revenue share rising to 17.25%. The company has expanded sales to 45 countries, including regions in Europe, Latin America, Asia-Pacific, and Africa [3]. - Specific products have been implanted in multiple countries, including the Castor branched aortic stent in 27 countries and the Minos abdominal aortic stent in 27 countries [3]. R&D Pipeline Progress - In 1H25, the new generation Cratos branched aortic stent system was approved for market and clinical implantation. Other products are in various stages of regulatory review and clinical follow-up [4]. - The Hector multi-branch aortic stent system has entered the special review process by the National Medical Products Administration (NMPA) [4]. Profit Forecast and Valuation - The company maintains its 2025 net profit forecast at 646 million yuan and introduces a new forecast for 2026 at 755 million yuan, with corresponding P/E ratios of 21.4 and 18.3 times [5]. - The company maintains an outperform rating and a target price of 150 yuan, indicating a potential upside of 34% from the current stock price [5].