Core Viewpoint - Kefu Medical, known for its posture correction brand "Beibeijia," is aiming for a dual listing on the Hong Kong Stock Exchange, showcasing its growth and challenges in the home medical device market [1] Group 1: Company Background and Growth - Kefu Medical started as a small company in Changsha, Hunan, in 2007, focusing on basic medical products and later integrated the "Beibeijia" brand to leverage its national recognition [2] - The company has expanded from a single product to a diversified portfolio, including rehabilitation aids and hearing health products, capitalizing on the user base of "Beibeijia" [2] Group 2: Sales and Revenue Performance - Kefu Medical's revenue for 2022, 2023, and 2024 was approximately 2.98 billion, 2.85 billion, and 2.98 billion RMB respectively, with a slight decline in 2023 due to increased channel expansion costs [5][6] - The rehabilitation aids segment has seen significant growth, with revenue increasing from 526 million RMB in 2022 to 1.04 billion RMB in 2024, driven by market demand from an aging population [7] Group 3: Profitability and Financial Metrics - The company's net profit for 2022, 2023, and 2024 was approximately 302 million, 253 million, and 312 million RMB respectively, with a notable increase in 2024 due to higher margins from rehabilitation aids [9][10] - Kefu Medical's gross margin improved from 37.84% in 2022 to 50.58% in 2024, attributed to increased production efficiency and a higher proportion of high-margin products [10] Group 4: Sales Channels and Market Strategy - Kefu Medical has established a strong online presence, achieving 19.90 billion RMB in online sales in 2024, while offline sales are gradually recovering [12] - The company is expanding its international presence, with overseas revenue reaching 59.15 million RMB in 2024, marking a growth of over 200% [14] Group 5: Challenges and Future Outlook - The company faces challenges in balancing short-term gains from established products with long-term investments in innovation, as well as managing high sales expenses [11][15] - Kefu Medical's ability to navigate regulatory hurdles and local market adaptations will be crucial for its international expansion efforts [14]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown steady revenue growth with a diverse product range and multiple sales channels, achieving a revenue of 2.983 billion yuan in 2024, a year-on-year increase of 4.53%, and a net profit of 312 million yuan, up 22.60% year-on-year [5][9] - The company focuses on core product categories and enhances R&D efficiency, launching over a hundred new products, including innovative solutions for chronic disease management [6] - The online sales channel generated 1.990 billion yuan in revenue, a growth of 8.94% year-on-year, while the offline channel saw a decline of 3.12% [7][8] Financial Performance Summary - In 2024, the company achieved a revenue of 2.983 billion yuan, with a net profit of 312 million yuan and a gross margin of 51.9% [11] - Revenue projections for 2025-2027 are 3.580 billion yuan, 4.333 billion yuan, and 5.236 billion yuan, with corresponding net profits of 414 million yuan, 504 million yuan, and 613 million yuan [9][11] - The expected EPS for 2025-2027 is 1.98 yuan, 2.41 yuan, and 2.93 yuan, with P/E ratios of 17x, 14x, and 11x respectively [9][11]