Investment Rating - The report maintains a "Recommendation" rating for the company, with a target price of 19 yuan [2][8]. Core Insights - The company reported a revenue of 507 million yuan for H1 2025, a decrease of 14.08% year-on-year, and a net profit attributable to shareholders of 122 million yuan, down 29.27% [2][8]. - In Q2 2025, the company achieved a revenue of 292 million yuan, reflecting a growth of 2.71% compared to the previous quarter, and a net profit of 68 million yuan, up 5.00% [2][8]. - The international business showed robust growth, with international revenue reaching 175 million yuan, an increase of 9.01%, and accounting for 34.6% of total revenue [2][8]. - The IVD (in vitro diagnostics) business faced short-term pressure, with revenue of 386 million yuan, down 17.60%, while the treatment and rehabilitation business remained relatively stable with revenue of 111 million yuan, down 2.37% [2][8]. - The overall gross margin decreased to 64.7%, with IVD gross margin at 67.15% and treatment and rehabilitation gross margin at 60.32% [2][8]. - The company significantly improved its performance in Q2 2025, with a 35.8% increase in revenue and a 26.46% increase in net profit compared to Q1 2025 [2][8]. - The forecast for net profit attributable to shareholders for 2025-2027 is 290 million, 340 million, and 390 million yuan, respectively, with corresponding PE ratios of 21, 18, and 16 [2][8]. Financial Summary - Total revenue projections for 2024A, 2025E, 2026E, and 2027E are 1,148 million, 1,174 million, 1,342 million, and 1,546 million yuan, respectively, with year-on-year growth rates of 0.2%, 2.3%, 14.3%, and 15.2% [4][8]. - The net profit attributable to shareholders for the same years is projected at 345 million, 292 million, 337 million, and 390 million yuan, with growth rates of 5.1%, -15.4%, 15.6%, and 15.5% [4][8]. - The company’s total market capitalization is 6.05 billion yuan, with a total share capital of approximately 428.49 million shares [5][8].

Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, but showed signs of recovery in the second quarter with positive growth in both revenue and net profit [1][4]. Financial Performance - For 2025 H1, the company achieved revenue of 507 million yuan, a decrease of 14.08%, and a net profit attributable to shareholders of 122 million yuan, down 29.27% [1]. - In Q2 2025, revenue was 292 million yuan, an increase of 2.71%, and net profit attributable to shareholders was 68 million yuan, up 5.00% [1][4]. - The overall gross margin for H1 2025 was 64.7%, down 5.12 percentage points, with IVD gross margin at 67.15% and treatment and rehabilitation gross margin at 60.32% [3]. Business Segments - International business showed growth, with international revenue reaching 175 million yuan, up 9.01%, and accounting for 34.6% of total revenue [2]. - Domestic revenue was 332 million yuan, a decline of 22.74%, primarily due to policy impacts and reduced market demand [2]. - IVD business revenue was 386 million yuan, down 17.60%, while treatment and rehabilitation business revenue was 111 million yuan, down 2.37% [2]. Research and Development - The company increased R&D investment, with R&D expenses reaching 113 million yuan, up 11.77%, and R&D expense ratio rising to 22.27%, an increase of 5.15 percentage points [3]. Future Outlook - The company expects net profit attributable to shareholders for 2025-2027 to be 290 million, 340 million, and 390 million yuan, reflecting a year-on-year change of -15.4%, +15.6%, and +15.5% respectively [4]. - A target price of approximately 19 yuan is set for 2026, based on a 24 times valuation [4].

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company's profitability is steadily improving, with rapid growth in testing and home products [5] - The company focuses on in vitro diagnostics, treatment, and rehabilitation, with significant revenue growth in testing reagents [6] - The company has a competitive advantage in the IVD sector and is experiencing rapid growth in its treatment and rehabilitation business [6] Financial Performance Summary - For 2024, the company achieved revenue of 1.148 billion yuan, a year-on-year increase of 0.20%, and a net profit attributable to shareholders of 345 million yuan, up 5.12% year-on-year [6] - The company expects revenues of 1.322 billion yuan in 2025, with a year-on-year growth rate of 15.14% [5] - The gross margin for 2024 was 67.21%, an increase of 4.21 percentage points year-on-year, while the net margin was 29.87%, up 1.29 percentage points year-on-year [6] Revenue and Profit Forecast - Revenue forecasts for 2025-2027 are 13.22 billion yuan, 15.20 billion yuan, and 17.44 billion yuan, with respective growth rates of 15.14%, 14.99%, and 14.74% [5] - Net profit forecasts for the same period are 396 million yuan, 455 million yuan, and 525 million yuan, with growth rates of 14.57%, 15.05%, and 15.30% [5] Valuation Metrics - The current price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are projected to be 15x, 13x, and 11x respectively [5]