Core Viewpoint - The company reported significant declines in revenue and profit for 2024, reflecting operational pressures and strategic adjustments in various business segments [1][2][3] Financial Performance - In 2024, the company achieved revenue of 6.103 billion yuan, a decrease of 23.52%, and a net profit attributable to shareholders of 247 million yuan, down 80.37% [1] - The first quarter of 2025 saw revenue of 1.736 billion yuan, a decline of 9.67%, with a net profit of 379 million yuan, down 21.44% [1] - The gross margin for 2024 decreased by 3.36 percentage points to 60.88% due to policy impacts on the pharmaceutical sector and strategic adjustments in the medical device segment [1] Business Segment Analysis - The pharmaceutical segment reported revenue of 3.49 billion yuan for raw materials, down 14.99%, and 1.409 billion yuan for formulations, down 46.50% [1] - The medical device segment generated revenue of 3.326 billion yuan, reflecting a strategic shift and operational challenges [1][2] - The medical services and health management segment achieved revenue of 1.019 billion yuan, down 19.24%, with notable growth in the Hefei Cardiovascular Hospital [3] Strategic Focus and Innovation - The company is focusing on innovation and internationalization, with new products in the interventional device field receiving approval [4] - The R&D pipeline includes various medical products expected to contribute significantly to future revenue [4] Future Outlook - The company is positioned as a leading player in the cardiovascular sector, with strategic adjustments in the pharmaceutical business and a focus on consumer healthcare expected to drive growth [5] - Projected net profits for 2025-2027 are 999 million yuan, 1.197 billion yuan, and 1.415 billion yuan, representing substantial growth rates [5]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 12.42 CNY based on a 23x P/E ratio for 2025 [2][6]. Core Insights - The company is expected to recover its performance throughout the year, with a projected EPS of 0.54 CNY for 2025, down from previous estimates of 0.75 CNY [2][10]. - The company’s revenue for 2024 is forecasted at 6.1 billion CNY, reflecting a year-on-year decline of 23.5%, but is expected to grow by 12.0% in 2025 [4][10]. - The medical device segment showed resilience, with structural heart disease revenue increasing by 44.0% in 2024, while the overall medical device revenue decreased by 9.5% [10]. Financial Performance Summary - **2023A**: Revenue of 7.98 billion CNY, net profit of 1.26 billion CNY, and EPS of 0.67 CNY. - **2024A**: Revenue expected to drop to 6.1 billion CNY, net profit to 247 million CNY, and EPS to 0.13 CNY. - **2025E**: Revenue projected to recover to 6.83 billion CNY, net profit to 1.01 billion CNY, and EPS to 0.54 CNY [4][10]. - The gross margin is expected to stabilize around 62.2% in 2025, with a net margin of 14.8% [4][10]. Business Strategy and Outlook - The company focuses on innovation, consumer engagement, and internationalization, particularly in the cardiovascular sector [10]. - New product approvals in the cardiovascular intervention space and ongoing clinical trials for innovative drugs indicate a strong pipeline for future growth [10].

Core Viewpoint - The company experienced a significant decline in revenue and net profit in 2024 due to macroeconomic conditions and industry policy impacts, but there are signs of recovery in 2025 with new product approvals and improved sales in various segments [1][2]. Group 1: Financial Performance - In 2024, the company reported revenue of 6.103 billion yuan, net profit attributable to shareholders of 247 million yuan, and net profit excluding non-recurring items of 221 million yuan, reflecting year-over-year declines of 23.5%, 80.4%, and 80.3% respectively [1]. - For Q1 2025, the company achieved revenue of 1.736 billion yuan, net profit attributable to shareholders of 379 million yuan, and net profit excluding non-recurring items of 337 million yuan, showing year-over-year declines of 9.7%, 21.4%, and 26.1% respectively, but with quarter-over-quarter improvements [1]. - The company expects a recovery in 2025 driven by new product approvals and a gradual restoration of its generic drug business [1]. Group 2: Business Segments - The structural heart disease segment showed strong performance with revenues of 3.326 billion yuan in 2024 and 904 million yuan in Q1 2025, marking year-over-year growth of 44.0% and 37.4% respectively [2]. - The pharmaceutical segment reported revenues of 1.758 billion yuan in 2024 and 595 million yuan in Q1 2025, with a year-over-year decline of 42.3% in 2024 but a significant quarter-over-quarter improvement of 111.4% in Q1 2025 [2]. - The medical services and health management segment generated revenues of 1.019 billion yuan in 2024 and 238 million yuan in Q1 2025, with year-over-year declines of 19.2% and 2.4% respectively, but is expected to improve with new product launches [2]. Group 3: Product Development - The company has expanded its product matrix, with several cardiovascular devices approved for market, including various catheter types and a biodegradable left atrial appendage occluder [3]. - In pharmaceuticals, the company is advancing its GLP-1 class products and has completed clinical trials for several key drugs, including a biosimilar for dulaglutide [3]. - Other product developments include continuous glucose monitoring systems and ongoing research in ophthalmology and dermatology [3]. Group 4: Profit Forecast and Valuation - The company anticipates net profits of 1.003 billion yuan, 1.156 billion yuan, and 1.331 billion yuan for 2025-2027, reflecting downward adjustments of 34% and 36% for 2025 and 2026 respectively [4]. - Given the diverse business layout and comprehensive sales channels, the company is assigned a 24x PE valuation for 2025, leading to a target price of 12.81 yuan [4].