Core Viewpoint - The company reported strong financial performance in the first half of 2025, with significant growth in revenue and net profit, driven by the expansion of its PFA product line and effective cost management [1][2][3]. Financial Performance - In H1 2025, the company achieved revenue of 1.214 billion yuan, a year-on-year increase of 21.26% - The net profit attributable to shareholders was 425 million yuan, up 24.11% year-on-year - The non-recurring net profit was 411 million yuan, reflecting a growth of 25.33% year-on-year - In Q2 2025, revenue reached 650 million yuan, with a year-on-year growth of 19.04% - The net profit for Q2 was 242 million yuan, increasing by 19.56% year-on-year [1]. Product Development and Market Expansion - The company focused on the core PFA products, completing over 800 PFA pulse ablation surgeries and achieving product entry in several leading medical centers nationwide - In February 2025, the company successfully launched magnetic positioning linear pressure PFA catheters and magnetic positioning circular PFA catheters, marking significant progress in atrial fibrillation treatment - The company also registered several key products, enhancing its comprehensive product lineup in the market - The coverage and hospital penetration rates for vascular intervention products improved, with coronary products entering over 18% more hospitals and peripheral products entering over 20% more hospitals year-on-year [2]. Cost Management and Profitability - In H1 2025, the sales expense ratio was 17.24%, a decrease of 0.46% year-on-year - The management expense ratio was 4.67%, showing a slight increase of 0.04% year-on-year - The R&D expense ratio was 12.95%, down by 0.42% year-on-year - The gross profit margin for H1 2025 was 73.51%, reflecting a year-on-year increase of 0.76% [3]. International Market Growth - The company's overseas business revenue reached 143 million yuan in H1 2025, a year-on-year increase of 23.84% - Self-branded products drove overall growth, with revenue increasing by 34.56% year-on-year - Strong performance was noted in Europe, the CIS region, and Latin America, while growth in the Middle East and Africa was relatively pressured due to geopolitical issues, but overall performance met expectations [4]. Profit Forecast - The company forecasts revenues of 2.682 billion yuan, 3.457 billion yuan, and 4.450 billion yuan for 2025, 2026, and 2027 respectively - The projected net profits attributable to shareholders are 930 million yuan, 1.246 billion yuan, and 1.517 billion yuan for the same years - The downward revision in forecasts is attributed to sales pressure in certain overseas markets in H1 2025 [4].

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Insights - The company achieved a revenue of 1.214 billion yuan in H1 2025, representing a year-on-year growth of 21.26%, and a net profit of 425 million yuan, up 24.11% year-on-year [1] - The rapid growth of PFA products has significantly contributed to the company's performance, with over 800 PFA pulse ablation surgeries completed and successful product approvals in major medical centers [2] - The company has enhanced its brand influence and clinical recognition through over 80 self-branded events and participation in nearly 10 national industry conferences [2] - The company's gross profit margin improved to 73.51%, an increase of 0.76% year-on-year, while the sales expense ratio decreased to 17.24% [3] Financial Performance - The company's overseas revenue reached 143 million yuan in H1 2025, a year-on-year increase of 23.84%, with significant growth in Europe, Russia, and Latin America [4] - The company expects revenues of 2.682 billion yuan, 3.457 billion yuan, and 4.450 billion yuan for 2025, 2026, and 2027 respectively, with net profits projected at 929 million yuan, 1.246 billion yuan, and 1.517 billion yuan for the same years [4] - The company’s sales expenses are projected to be 536 million yuan in 2025, with a management expense ratio of 4.67% [10] Market Position - The company has made significant advancements in the field of electrophysiology and vascular intervention, with a comprehensive product lineup including new PFA catheters and other key products [2] - The company’s market penetration in coronary and peripheral products has increased, with over 18% and 20% growth in the number of hospitals using these products respectively [2]