Investment Rating - The report maintains a "Buy" rating for the company [5] Core Insights - The company reported a total revenue of 1.495 billion yuan for the first half of 2025, representing a year-on-year growth of 9.5%, and a net profit of 152 million yuan, which is a 41.6% increase year-on-year [1][2] - The operating cash flow reached 300 million yuan, showing a significant increase of 111% year-on-year [1] - The company is focusing on the development of "AI avatars" for renowned doctors, which aims to enhance the quality of traditional Chinese medicine services and improve operational efficiency [3] Summary by Sections Financial Performance - In the first half of 2025, the company's revenue grew to 1.495 billion yuan, with a net profit of 152 million yuan, driven by improved gross margins and effective cost control [2] - The gross margin increased by 1.2 percentage points to 30.6%, while the management expense ratio decreased by 1.8 percentage points to 6.3% [2] - The number of patient visits increased to 2.747 million, with a stable average spending per visit and a member retention rate of 85% [2] Strategic Initiatives - The company is accelerating its national and international expansion, having established 7 new clinics, bringing the total number of global offline medical institutions to 83 by the end of June 2025 [2] - The development of "AI avatars" is expected to alleviate the supply bottleneck of quality traditional Chinese medicine resources and enhance the company's capacity for revenue growth [3] Profit Forecast and Valuation - The adjusted net profit forecasts for 2025, 2026, and 2027 are 493 million yuan, 594 million yuan, and 708 million yuan respectively [3] - The company is expected to benefit significantly from the aging population and supportive policies in the traditional Chinese medicine sector, alongside the advantages brought by AI [3]