Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company achieved a revenue of 2.381 billion yuan in the first three quarters of 2025, representing an 18.29% year-on-year increase, and a net profit attributable to shareholders of 509 million yuan, up 12.90% year-on-year [1] - The third quarter of 2025 saw a revenue of 815 million yuan, a 20.12% increase year-on-year, with a net profit of 146 million yuan, growing 3.74% year-on-year [1] - The company's gross margin for the first three quarters of 2025 was 64.55%, down from 67.64% in the same period last year, indicating short-term pressure on profitability [2] - The international market revenue reached 910 million yuan in the first half of 2025, accounting for 58% of total revenue, with significant growth in the Americas and EMEA regions [2] - The company is focusing on innovation, with new products like the eyeMAX single-use bile duct endoscope contributing to a second growth curve [3] - The profit forecast for 2025-2026 has been adjusted downwards due to lower-than-expected gross margin and increased R&D expenses, with net profit estimates revised to 652 million yuan for 2025 and 765 million yuan for 2026 [3] Summary by Sections Financial Performance - For 2025, the company expects revenue to reach 3.344 billion yuan, with a growth rate of 21.35% [4] - The net profit for 2025 is projected at 652 million yuan, reflecting a growth rate of 17.83% [4] - The gross margin is expected to decline slightly to 64.3% in 2025 [11] Cost Management - The sales expense ratio for the first three quarters of 2025 was 21.81%, while the management expense ratio was 12.74% and R&D expense ratio was 5.62% [2] - The company maintains a strong focus on cost control despite the pressure on gross margins [2] Market Expansion - The company is actively pursuing a global strategy, with overseas business becoming a key growth driver [2] - The Americas market saw a revenue increase of 22%, while the EMEA market experienced a significant 89% growth [2] Innovation and Product Development - The company is increasing its R&D investment, with a rich pipeline of new products including next-generation bile duct endoscopes and bronchoscopes [3] - The eyeMAX product has already been adopted by multiple hospitals in China, indicating strong market acceptance [3] Valuation Metrics - The projected P/E ratios for 2025-2027 are 25, 21, and 18 respectively, indicating a favorable valuation outlook [3][4] - The estimated EPS for 2025 is 3.47 yuan, with a projected ROE of 15.19% [4][11]