Core Viewpoint - The report from Zhongyou Securities indicates that Kaili Medical's net profit attributable to the parent company for H1 2025 is 47 million yuan, a year-on-year decrease of 72.43% [1] - The net profit attributable to the parent company after deducting non-recurring gains and losses is 40 million yuan, a year-on-year decrease of 74.26% [1] - Despite the decline in profits, the domestic medical device industry is showing signs of recovery, with significant growth in the bidding success of ultrasound and endoscope products [1] Industry Summary - The domestic medical device industry is experiencing a revival in terminal bidding, which is expected to positively impact company performance as market demand continues to improve [1] - The past two years of industry restructuring have created a lag between market bidding and revenue growth reported by companies [1] Company Summary - Kaili Medical is actively building its marketing network both domestically and internationally, with a focus on local construction, product innovation, and channel network integration [1] - The company currently has a presence in nearly 170 countries and regions globally [1] - Domestically, the company maintains a clinical value-oriented approach, enhancing regional service capabilities, channel network advantages, and clinical collaborative innovation to support sustained business growth [1] - The company has been given an "Accumulate" rating based on its potential for recovery and growth [1]

Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [2]. Core Views - The company's performance is under short-term pressure, but there are expectations for new product launches to drive growth in the second half of the year [5]. - The domestic medical equipment industry is showing signs of recovery, with significant growth in the company's ultrasound and endoscope products [6]. - The company has launched several new products across its business lines, including advanced endoscope platforms and bronchoscopes, which are expected to enhance its market position [6]. - The company is expanding its domestic and international marketing networks, which is anticipated to support ongoing business growth [7]. - Revenue forecasts for 2025-2027 are projected at 2.22 billion, 2.68 billion, and 3.18 billion yuan, with corresponding net profits expected to be 188 million, 391 million, and 503 million yuan [8]. Company Overview - The latest closing price of the company's stock is 34.45 yuan, with a total market capitalization of 14.9 billion yuan [4]. - The company reported a revenue of 964 million yuan in H1 2025, a year-on-year decrease of 4.78%, and a net profit of 47 million yuan, down 72.43% year-on-year [5]. - The company has a debt-to-asset ratio of 27.9% and a price-to-earnings ratio of 104.39 [4].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 964 million yuan in the first half of 2025, a year-on-year decline of 4.78%, and a net profit attributable to shareholders of 47 million yuan, down 72.43% year-on-year. The second quarter showed signs of improvement with a revenue of 534 million yuan, a year-on-year increase of 0.17% and a quarter-on-quarter increase of 24.24% [2][7] - The medical equipment industry is experiencing a recovery in terminal bidding and procurement activities, but the company faces short-term pressure due to high channel inventory accumulated over the past two years. It is expected that performance will improve in the second half of the year as channel inventory is digested [6][9] Financial Performance Summary - In the first half of 2025, the ultrasound segment generated revenue of 550 million yuan, down 9.87% year-on-year, while the endoscope and related consumables segment remained stable with revenue of 388 million yuan. Domestic revenue was approximately 495 million yuan, down 9.2% year-on-year, while overseas revenue was about 469 million yuan, up 0.3% year-on-year [6] - The company is increasing strategic investments, with sales, management, and R&D expense ratios at 31.63%, 7.11%, and 25.31% respectively, reflecting a year-on-year increase [7] - Revenue projections for 2025-2027 are expected to be 2.317 billion yuan, 2.765 billion yuan, and 3.203 billion yuan, with corresponding growth rates of 15.0%, 19.4%, and 15.9%. Net profit attributable to shareholders is projected to be 311 million yuan, 475 million yuan, and 614 million yuan for the same period, with growth rates of 118.5%, 52.7%, and 29.3% respectively [9][11]