Investment Rating - The investment rating for the company is "Buy" with a target price of RMB 31.18 [1][7]. Core Views - The company achieved revenue of RMB 224 million in 1H25, representing a year-on-year increase of 12.8%, and a net profit of RMB 32.67 million, up 92.0% year-on-year, aligning with performance expectations [1]. - The gross margin for 1H25 was 60.1%, an increase of 1.0 percentage points year-on-year, driven by the strong performance of high-end products [1]. - The company is expected to see rapid growth in overall performance in 2025 due to continuous improvement in its product matrix and active overseas sales efforts [1]. Revenue Breakdown - Catheter products generated revenue of RMB 161 million, with high-end catheter products showing rapid growth, completing over 3,000 surgeries in China by 1H25 [2]. - Equipment products contributed RMB 16.19 million, with expectations for positive development in 2025 amid recovering industry demand [2]. - Other products, mainly sheath products, achieved revenue of RMB 45.25 million, expected to grow alongside the overall increase in surgical volumes [2]. Overseas Expansion - Overseas revenue reached RMB 69.47 million, a year-on-year increase of over 40%, accounting for 31% of total revenue [3]. - The company has made significant progress in overseas commercialization, with three-dimensional surgeries implemented in over 20 countries by 1H25 [3]. - Domestic revenue was RMB 154 million, with expectations for growth driven by the release of high-end products [3]. Product Development - The company is making progress in new product development, including PFA products and intracardiac ultrasound, with expectations for domestic approval in 2025 and 2026, respectively [4]. - The RDN product is currently in clinical trials, with anticipated domestic approval in 2026 [4]. Profit Forecast and Valuation - The profit forecast has been adjusted, with expected net profits for 2025-2027 at RMB 84 million, RMB 118 million, and RMB 162 million, respectively, reflecting increases of 18%, 7%, and 1% compared to previous estimates [5]. - Using DCF valuation methods, the target price is set at RMB 31.18, up from a previous estimate of RMB 27.73 [5][17].

Core Viewpoint - The company reported robust revenue growth in Q1 2025, with domestic revenue showing single-digit percentage growth year-on-year and international revenue growing over 50% year-on-year. The company expects high growth in overseas revenue to continue throughout the year. [1] Group 1: Financial Performance - Q1 2025 revenue increased by 17% year-on-year to RMB 100 million, with domestic business showing single-digit percentage growth and overseas revenue growing over 50% [1] - The company's gross profit margin remained stable at 60.6%, while net profit attributable to the parent company surged by 329% year-on-year to RMB 17.87 million, resulting in a net profit margin improvement of 12.5 percentage points to 17.2% [1] - The company aims to achieve revenue of RMB 510 million, RMB 660 million, and RMB 840 million for the years 2025-2027, respectively, with a target price of RMB 27.90 based on a 20x 2026E PS valuation multiple [4] Group 2: Market Dynamics - The company anticipates that the 27-province alliance for electrophysiology procurement will be renewed in the second half of 2025, with expectations of moderate price declines [3] - In Q1 2025, the company performed over 1,000 surgeries overseas (double-digit year-on-year growth), with approximately half using pressure catheters. The Latin American market showed the highest growth rate [2] - Domestic surgeries exceeded 5,000 in Q1 2025, reflecting single-digit growth year-on-year, with about 30% utilizing pressure catheters [2] Group 3: Product Development - The company is accelerating the localization of raw materials, reducing the import ratio from 40% in 2024 (down from 60% in 2022) and decreasing the proportion of raw materials imported from the U.S. to about 10% [3] - The R&D pipeline is progressing well, with the PFA product approved in April 2025 and expected to be listed soon, while self-developed catheters are anticipated to be approved in 2025 [3] - The 3D intracardiac ultrasound product has initiated clinical research and is expected to be approved by 2026, offering innovative features to reduce X-ray exposure [3]