Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, but anticipates a potential turnaround in Q3 with improving revenue trends [1][4]. Financial Performance - In H1 2025, the company achieved operating revenue of 16.743 billion yuan, a year-on-year decrease of 18.45% - The net profit attributable to shareholders was 5.069 billion yuan, down 32.96% year-on-year - The non-recurring net profit was 4.949 billion yuan, also down 32.94% year-on-year - In Q2 2025, the company reported operating revenue of 8.506 billion yuan, a decline of 23.77% year-on-year, and a net profit of 2.440 billion yuan, down 44.55% year-on-year [1]. Profitability Metrics - The sales expense ratio was 14.48%, an increase of 0.18 percentage points year-on-year - The management expense ratio was 4.07%, up 0.07 percentage points year-on-year - The R&D expense ratio was 9.60%, an increase of 0.95 percentage points year-on-year - The financial expense ratio was -2.00%, a decrease of 0.58 percentage points year-on-year - The gross profit margin was 61.67%, down 4.59 percentage points year-on-year, primarily due to intensified competition in IVD and minimally invasive surgical products - The net profit margin was 31.25%, down 5.65 percentage points year-on-year [1]. Business Segments - The in vitro diagnostics (IVD) business generated revenue of 6.424 billion yuan in H1 2025, a decrease of 16.11% year-on-year, but international IVD business saw double-digit growth, with international chemiluminescence business growing over 20% - The company has established localized production projects in 14 countries, enhancing penetration into large sample size clients overseas - In the domestic market, despite challenges from healthcare reforms, the company is accelerating import substitution and steadily increasing market share [2]. Life Information and Support Business - The life information and support business reported revenue of 5.479 billion yuan in H1 2025, down 31.59% year-on-year, affected by prolonged medical equipment update cycles - The company maintained its leading market share in the domestic market through intelligent solutions - The minimally invasive surgical core business is expected to enter a growth phase, contributing new momentum [3]. Medical Imaging Business - The medical imaging business achieved revenue of 3.312 billion yuan in H1 2025, a decrease of 22.51% year-on-year - The ultra-high-end ultrasound series generated nearly 400 million yuan in sales, approaching last year's total - The international market share for ultrasound remains low, but the launch of high-end products is expected to drive future growth [3]. Revenue Forecast and Valuation - The company is projected to see a revenue turnaround in Q3, with contributions from minimally invasive surgery and continued breakthroughs in high-end international clients - Expected revenues for 2025-2027 are 37.032 billion, 41.897 billion, and 47.470 billion yuan, reflecting growth rates of 0.8%, 13.1%, and 13.3% respectively - Expected net profits for the same period are 11.611 billion, 13.015 billion, and 14.767 billion yuan, with slight declines in 2025 followed by growth in subsequent years - The current stock price corresponds to a PE ratio of 26, 23, and 20 for 2025-2027 [4].