Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 14.90 [1][7]. Core Views - The company achieved revenue of RMB 1.075 billion and a net profit attributable to the parent of RMB 34 million in 1H25, reflecting a year-on-year decline of 15.9% and 83.1% respectively, primarily due to adjustments in revenue structure and increased competition in the domestic market [1]. - The company's self-developed products generated revenue of RMB 872 million in 1H25, down 6.5% year-on-year, but the sales volume of self-developed reagents increased by 3.8% [1]. - The company has made significant progress in the commercialization of large instruments and production lines, with a total of 2,409 units shipped in 1H25, representing a year-on-year increase of 4.7% [1]. - The overseas market performance is strong, with overseas revenue reaching RMB 108 million in 1H25, up 37.6% year-on-year, and an increase in gross margin by 7.4 percentage points [1]. Summary by Sections Financial Performance - The company's gross margin for 1H25 was 57.0%, showing stability with a slight decrease of 0.04 percentage points year-on-year [2]. - The sales, management, and R&D expense ratios for 1H25 were 25.5%, 8.6%, and 14.2% respectively, reflecting increases of 3.1, 2.5, and 2.9 percentage points year-on-year [2]. Product Segments - Chemical luminescence reagents generated revenue of RMB 452 million in 1H25, down 6.2% year-on-year, but the sales volume increased by 9.6% [3]. - The company shipped 151 new immunoassay instruments and 846 new immune platform instruments in 1H25, contributing to a positive growth in instrument holdings [3]. - The company expects stable growth in chemical luminescence reagent revenue for the full year 2025, driven by increased instrument installations and favorable bidding outcomes [3]. Other Business Segments - Biochemical segment revenue was RMB 195 million in 1H25, down 25.2% year-on-year, attributed to price adjustments following inter-provincial alliance bidding [4]. - The clinical testing segment saw revenue of RMB 114 million in 1H25, up 6.2% year-on-year, with a significant increase in sales volume [4]. - Agency revenue decreased to RMB 193 million in 1H25, down 42.2% year-on-year, while the proportion of self-developed product revenue reached 81.1%, up 8.2 percentage points year-on-year [4]. Profit Forecast and Valuation - The company adjusted its profit forecast for 2025-2027, expecting EPS of RMB 0.35, 0.42, and 0.53, reflecting downward adjustments of 29%, 27%, and 24% respectively [5]. - The valuation method has switched to PE, with a target PE of 43x for 2025, compared to the industry average of 45x [5]. - The target price of RMB 14.90 reflects a revised estimate based on the company's self-developed and agency business contributions [5].

Core Viewpoint - The E Fund Healthcare Industry Mixed A Fund (110023) reported a profit of 535 million yuan in Q2 2025, with a weighted average profit per fund share of 0.4323 yuan, and a net value growth rate of 12.16% during the reporting period [3] Fund Performance - As of July 18, the fund's unit net value was 4.524 yuan, with a recent three-month net value growth rate of 34.04%, ranking 47 out of 138 comparable funds [4] - The fund's six-month net value growth rate was 54.03%, ranking 48 out of 138, and the one-year growth rate was 51.05%, ranking 46 out of 133 [4] - Over the past three years, the fund achieved a net value growth rate of 52.38%, ranking 7 out of 107 [4] Risk and Return Metrics - The fund's Sharpe ratio over the past three years was 0.4532, ranking 17 out of 105 comparable funds [9] - The maximum drawdown over the past three years was 24.99%, with the worst quarterly drawdown occurring in Q1 2021 at 24.73% [11] Investment Strategy - The fund underwent significant portfolio adjustments during the reporting period, reducing holdings in sectors like CXO and IVD, while concentrating investments in the innovative drug sector, based on a thorough analysis of the prospects for China's innovative drug industry [3] Fund Holdings - The fund's average stock position over the past three years was 92.35%, compared to an average of 86.91% for comparable funds, reaching a peak of 94.24% at the end of H1 2023 [14] - As of Q2 2025, the fund's top ten holdings included companies such as Heng Rui Medicine, Recbio Technology, and BeiGene, with a concentration exceeding 60% for the top ten holdings over the past two years [18] Fund Size - As of the end of Q2 2025, the fund's total size was 3.944 billion yuan [15]