Investment Rating - The investment rating for the company is "Outperform the Market" [5][21][22] Core Views - The company's revenue growth is stable, but profit is under pressure due to increased R&D and marketing investments, as well as provisions for bad debts and goodwill impairment [1][8] - The gross margin has slightly declined, with an increase in expense ratios, primarily due to changes in accounting standards and a higher proportion of lower-margin overseas business [2][14] - The company is experiencing a slowdown in domestic revenue growth due to reduced procurement activities, while overseas revenue is showing strong growth [1][18] Financial Performance Summary - In 2024, the company achieved revenue of 750 million yuan (+10.54%) and a net profit of 21 million yuan (-63.68%), with a non-recurring net profit of -6 million yuan (-114.13%) [1][4] - The gross margin for 2024 is 68.12%, with a decline of 5.66 percentage points, mainly due to accounting changes [2][14] - The company plans to increase revenue to 860 million yuan in 2025, with a projected growth rate of 15% [3][21] Market and Product Development - The company is focusing on promoting the AQ-300 4K ultra-high-definition endoscope system, with steady growth in the installation of mid-to-high-end products [2][18] - In 2024, overseas revenue reached 161 million yuan, a year-on-year increase of 42.70%, accounting for 22% of total revenue [2][18] - The company is expected to benefit from a recovery in the bidding environment starting in 2025, as the industry adjusts to regulatory changes [3][21]