Group 1 - Goldman Sachs upgraded the rating of Tiger Medical A-shares (300347.SZ) from "Neutral" to "Buy" and raised the target price from 62.1 RMB to 77.1 RMB [1] - The firm initiated coverage on Tiger Medical H-shares (03347) with a "Buy" rating and a target price of 62.1 HKD, indicating that the stock has lagged behind the domestic healthcare sector, presenting an attractive entry point [1] - The expectation of accelerated new order growth in Q4 this year, along with improved earnings visibility from 2026 to 2028, is anticipated to drive the stock price [1] Group 2 - The industry is expected to reach a turning point, with a recovery anticipated from late 2025 to 2026, driven by strong fundraising rebounds and increased upfront payments from authorized collaborations [1] - Price stabilization is expected by the end of 2024, followed by a continuous increase [1] - The firm forecasts a compound annual growth rate of 37% for core earnings from 2025 to 2028, supported by strong new order momentum and revenue growth in the mid-teens (approximately 13% to 17%) [1] Group 3 - The leadership position of the group in the domestic market and ongoing global expansion is reflected in the earnings projections [1] - Earnings per share forecasts for 2026 and 2027 have been raised by 9% and 13%, respectively [1] - The EBIT profit margin is expected to increase by 180, 150, and 190 basis points for 2026 to 2028, driven by reduced impairment losses, improved operational leverage, and enhanced cost control [1]

Group 1 - Goldman Sachs upgraded Tiger Med (300347.SZ) rating from "Neutral" to "Buy" and raised the target price from 62.1 RMB to 77.1 RMB, while initiating coverage on Tiger Med H shares (03347) with a "Buy" rating and a target price of 62.1 HKD [1] - The firm noted that the stock's recent performance has lagged behind the domestic healthcare sector, indicating that the current moment presents an attractive entry point [1] - Expectations for accelerated new order growth in Q4 of this year, along with improved earnings visibility from 2026 to 2028, are anticipated to drive the stock price [1] Group 2 - The industry is expected to reach a turning point, with a recovery anticipated from late 2025 to 2026, primarily benefiting from a strong rebound in fundraising and increased upfront payments from authorized collaborations [1] - Price stabilization is expected by the end of 2024, followed by a continuous increase [1] - The firm forecasts a compound annual growth rate of 37% for core earnings from 2025 to 2028, driven by strong new order momentum supporting revenue growth in the mid-teens (approximately 13% to 17%) [1] Group 3 - The leadership position of the group in the domestic market and ongoing global expansion are highlighted as key factors [1] - Earnings per share forecasts for 2026 and 2027 have been raised by 9% and 13%, respectively [1] - EBIT margins are expected to increase by 180, 150, and 190 basis points for 2026 to 2028, attributed to reduced impairment losses, improved operational leverage, and enhanced cost control [1]

Core Viewpoint - Goldman Sachs upgraded the rating of Tiger Med's A-shares from "Neutral" to "Buy," raising the target price from 62.1 yuan to 77.1 yuan, and initiated coverage on Tiger Med's H-shares with a "Buy" rating and a target price of 62.1 HKD [1] Group 1: Company Analysis - The stock has underperformed compared to the domestic healthcare sector, indicating an attractive entry point at present [1] - The expectation of accelerated growth in new orders in Q4 of this year, along with improved earnings visibility from 2026 to 2028, is anticipated to drive the stock price [1] Group 2: Industry Outlook - A turning point is expected in the industry, with a recovery anticipated between late 2025 and 2026, primarily benefiting from a strong rebound in fundraising and increased upfront payments from authorized collaborations [1] - Prices are expected to stabilize by the end of 2024 and continue to rise thereafter [1]

Core Viewpoint - The company reported a significant decline in both revenue and net profit for Q1 2025, primarily due to delayed revenue recovery and increased expenses from prior personnel expansion [1][3]. Financial Performance - Revenue for Q1 2025 was 430 million yuan, down 10.29% year-over-year [1]. - Net profit attributable to shareholders was 8.07 million yuan, a decrease of 91.94% year-over-year [1]. - Gross margin for Q1 2025 was 63.2%, down 6.2 percentage points year-over-year [2]. Industry Trends - The ultrasound imaging diagnostic equipment market in China grew nearly 90% year-over-year in Q1 2025, indicating ongoing industry recovery [2]. - The company faced challenges in revenue due to industry-wide adjustments and high channel inventory levels, but expects gradual recovery as inventory is digested [2]. Cost and Profitability - The company expanded its workforce by 425 employees (approximately 16% year-over-year) in 2024, leading to increased employee costs [3]. - The company anticipates that as revenue recovers and product offerings shift towards higher-end solutions, the expense ratio will improve throughout the year [3]. Earnings Forecast and Valuation - The company maintains its EPS forecast for 2025 and 2026 at 0.84 yuan and 1.13 yuan, respectively [4]. - The target price remains at 41.6 yuan, reflecting a potential upside of 37.2% based on a DCF valuation model [4].