Core Viewpoint - AnTu Technology (安图生物) has shown marginal improvement in its financial performance for Q2 2025, despite ongoing industry pressures, leading to a "Buy" rating from Huazhong Securities [1][4]. Financial Performance - In H1 2025, the company reported revenue of 2.06 billion yuan, a year-over-year decrease of 6.65%, and a net profit attributable to shareholders of 571 million yuan, down 7.83% year-over-year [1]. - For Q2 2025, revenue reached 1.064 billion yuan, a year-over-year decline of 4.79%, while net profit increased by 1.97% year-over-year to 301 million yuan [1][2]. - Operating cash flow for Q2 2025 was 244 million yuan, reflecting a significant year-over-year increase of 45.9% [1]. Industry Factors - The industry continues to face challenges such as reduced testing volumes at hospitals and the comprehensive implementation of IVD centralized procurement [2]. - Despite these challenges, Q2 2025 saw a quarter-over-quarter revenue increase of 6.9% and a net profit growth of 11.7% [2]. Cost Management - The company has improved its expense ratios, with sales, management, and R&D expense ratios at 18.21%, 4.11%, and 11.25%, respectively, showing a decrease of 1.40, 1.77, and 1.86 percentage points quarter-over-quarter [2]. Regional Performance - In H1 2025, domestic revenue was 1.904 billion yuan, down 8.32% year-over-year, primarily due to domestic policy impacts, while international revenue was 157 million yuan, up 19.78% year-over-year, attributed to global market expansion [2]. R&D Investment - The company maintains high R&D investment levels, with projected expenditures of 571.69 million yuan, 656.13 million yuan, and 731.93 million yuan from 2022 to 2024, representing 12.87%, 14.77%, and 16.37% of revenue, respectively [3]. - In H1 2025, the company obtained 88 new reagent certificates covering various diagnostic methods and diseases [3]. Future Projections - Revenue forecasts for 2025-2027 are 4.501 billion yuan, 4.975 billion yuan, and 5.531 billion yuan, with year-over-year growth rates of approximately 0.7%, 10.5%, and 11.2% [4]. - Net profit projections for the same period are 1.220 billion yuan, 1.403 billion yuan, and 1.617 billion yuan, with growth rates of about 2.2%, 14.9%, and 15.3% [4].