Investment Rating - The investment rating for the company is "Buy" [4] Core Views - The company is expected to achieve revenue of 11.51 billion yuan in H1 2025, representing a year-over-year growth of 9.12%, with a net profit attributable to the parent company of 2.05 billion yuan, showing a slight increase of 0.1% year-over-year [1] - The company is focusing on expanding its core business in refractive and optical services while enhancing its overseas operations, particularly in Europe and Southeast Asia, which contributed to 1.52 billion yuan in revenue, a year-over-year increase of 16.5% [3][8] - The implementation of AI diagnostic technology and the expansion into lower-tier markets are expected to drive long-term growth [8] Financial Performance - In H1 2025, the company reported a gross margin of 48.6%, a decrease of 0.9 percentage points, and a net profit margin of 17.8%, down by 1.6 percentage points [2] - The company’s total outpatient visits reached 9.248 million, an increase of 16.5% year-over-year, while the number of surgeries performed was 879,000, reflecting a growth of 7.6% [1] - For Q2 2025, the company achieved revenue of 5.48 billion yuan, a year-over-year increase of 2.5%, with a net profit of 1 billion yuan, down 13% year-over-year [1] Business Segmentation - The refractive project generated revenue of 4.62 billion yuan in H1 2025, accounting for 40.1% of total revenue, with a gross margin of 56.1% [4] - The optical service project reported revenue of 2.72 billion yuan, representing 23.6% of total revenue, while the cataract project generated 780 million yuan, accounting for 15.5% [4][7] - The company operates 355 domestic hospitals and 240 outpatient departments, along with 169 overseas eye centers and clinics [3] Cost Control and Efficiency - The company has effectively reduced its expense ratio to 24.5%, down by 2.1 percentage points, with a sales expense ratio of 9.1%, reflecting a shift to digital marketing [3] - Research and development expenses accounted for 1.3% of total revenue, indicating a focus on digital transformation [3] Future Projections - The company forecasts revenues of 23.43 billion yuan, 25.96 billion yuan, and 28.60 billion yuan for 2025, 2026, and 2027, respectively, with corresponding growth rates of 11.7%, 10.8%, and 10.2% [8][10] - Net profit is projected to reach 4.07 billion yuan, 4.65 billion yuan, and 5.36 billion yuan for the same years, with growth rates of 14.5%, 14.2%, and 15.2% [8][10]