核心观点 公司中报业绩符合预期。收入下降原因主要系关节产品销售模式由配送模式转为经销模式，出厂价格下 降所致。利润增速较高，主要由于销售模式调整带来的销售费用下降、公司精细化管理所带来的经营效 率提升等因素所致。展望下半年，尽管关节及组织修复业务的销售模式调整预计对公司收入有所影响， 脊柱、创伤等业务有望保持稳健增长，且利润率有望同比持续改善，利润增速预计高于收入增速。全年 利润端有望实现限制性股票激励计划的考核目标。中长期来看，公司所在的骨科行业成长性良好，公司 产品线布局全面，有望依托品牌、渠道、研发等优势， 维持行业龙头地位。 事件 公司发布2025 年半年度报告 2025 年上半年公司实现营收7.41 亿元，同比-1.28%；归母净利润1.42 亿元，同比+52.43%； 扣非归母 净利润1.36 亿元， 同比+51.98%。基本每股收益为0.35 元/股。拟向全体股东每10 股派发现金红利1.00 元（含税），分红总额约3973 万元。 动态信息评述 中报业绩符合预期，收入下降主要受关节销售模式调整影响2025 年上半年公司实现营收7.41 亿元，同 比-1.28%；归母净利润1.42 亿元，同比+ ...

Investment Rating - The report maintains a rating of "Buy" for the company [2][10]. Core Views - The company's performance in the first half of 2025 met expectations, and there is potential for acceleration in the second half of the year [2][10]. - The company has achieved steady revenue growth, with a 5.6% year-on-year increase in revenue to 694 million RMB and a 15.3% increase in net profit to 161 million RMB in the first half of 2025 [10]. - The domestic business is making breakthroughs, and overseas exports are continuously expanding, with a 4.0% increase in overseas revenue to 128 million RMB in the first half of 2025 [10]. Financial Summary - Total revenue is projected to grow from 1,100.29 million RMB in 2023 to 2,250.62 million RMB in 2027, reflecting a compound annual growth rate (CAGR) of approximately 20.8% [4]. - Net profit is expected to increase from 182.10 million RMB in 2023 to 499.13 million RMB in 2027, with a CAGR of about 22.4% [4]. - The company's price-to-earnings (PE) ratio is projected to decrease from 32.89 in 2023 to 11.84 in 2027, indicating improving valuation [4]. Market Data - The company's current market capitalization is approximately 6.41 billion HKD, with a stock price range of 3.98 to 7.05 HKD over the past 52 weeks [7][10]. - The target price is set at 7.56 RMB (equivalent to 8.26 HKD) based on a target PE of 21X for 2026 [10].

Summary of the Orthopedic Consumables Industry Conference Call Industry Overview - The orthopedic consumables industry is undergoing rapid reshuffling post-collective procurement, with companies shifting strategies towards volume-based pricing [1][4] - Joint surgery volumes are expected to maintain a stable growth rate of 10%-15% in the long term, while spinal surgeries benefit from aging populations and domestic replacements [1][5] - The industry is focusing on international expansion, particularly in regions such as the Middle East, Africa, Latin America, Southeast Asia, and Europe, with strong demand in Belt and Road Initiative countries [1][6] Key Points and Arguments - **Performance Metrics**: In the first half of 2025, the orthopedic consumables sector saw a 16% year-on-year increase in revenue, with a notable 23% growth in Q2. Gross margins improved by approximately 2 percentage points due to cost control and inventory clearance [3][10] - **Market Dynamics**: Post-collective procurement, the industry has seen a focus on cost management and sales of non-procurement products to enhance market share and customer coverage [4][13] - **Company Strategies**: Major players like Dabo and Weigao are investing heavily in logistics and supply chain improvements to enhance product turnover efficiency [1][7] - **Joint Segment Recovery**: The joint segment is recovering the fastest, with over 1 million surgeries performed, and is expected to maintain a growth rate of 10%-15% [8][9] Company-Specific Insights - **Dabo Medical**: Reported a 77% revenue growth in H1 2025, marking a significant recovery across all product lines [17] - **Aikang Medical**: Experienced a 6% revenue growth, with hip joint revenue increasing by 14%, while knee joint revenue remained flat due to price declines [18][19] - **Chunli Medical**: Achieved over 40% of revenue from overseas markets, reflecting a strategic shift towards international product promotion [20] - **Weigao Medical**: Faced a 21% decline in joint revenue but improved shipment volumes and market share [10][21] - **Sanyou Medical**: Despite a 17% decline in overall revenue, the company is focusing on innovative products like surgical robots and ultrasonic bone knives [22] Additional Important Insights - The industry is expected to see a rise in domestic market share and opportunities in non-procurement products, while international expansion is viewed as a second growth curve [14][15] - Companies are adopting various strategies for internationalization, including mergers and acquisitions, and focusing on high-end markets in Europe and the U.S. [12][16] - The overall performance of the orthopedic consumables sector remains constrained by national procurement policies and healthcare regulations, impacting growth rates [10][14]

Group 1: Strategy Overview - The core strategy is a continuation of the bull market, focusing on core technology assets as A-shares strengthen under the leadership of these assets [2][3] - The market outlook remains positive due to economic recovery expectations, continuous capital inflow, and policy benefits, with a mid-term slow bull logic still intact [3] - Short-term market may face technical adjustment pressure due to crowded trading in some popular sectors, but a new round of valuation-driven market space is expected to open up starting in Q3 [3] Group 2: September Stock Picks - The September stock picks include: Beijing-Shanghai High-Speed Railway (Transportation), Tongkun Co., Ltd. (Chemicals), Yake Technology (Chemicals), CATL (Electricity), Heng Rui Medicine (Pharmaceuticals), Sanyou Medical (Pharmaceuticals), Beijing Renli (Social Services), Feiliwa (Electronics), Zhaoyi Innovation (Electronics), and Pengding Holdings (Electronics) [8][10] Group 3: Industry Insights Transportation Industry: Beijing-Shanghai High-Speed Railway - The company is a landmark project in China's high-speed rail, with expected net profit exceeding 12.7 billion yuan in 2024 [10] - The business model relies on entrusted transportation management, with revenue primarily from passenger transport and network service income [10] - Key factors supporting growth include a favorable pricing mechanism, strong travel demand along the route, network effects from an expanding high-speed rail network, and technological advancements in train efficiency [11] Chemical Industry: Tongkun Co., Ltd. - The company achieved significant sales growth in polyester filament, with a total sales volume of 9.4587 million tons in the first three quarters of 2024, a year-on-year increase of 29.60% [12] - Despite a decline in selling prices due to fluctuating oil prices and weak downstream demand, the company expects profitability to improve with demand recovery [12] Chemical Industry: Yake Technology - The company reported steady growth, with a gross margin of 31.59% in 2024 [14] - The electronic materials segment is expanding, with significant revenue growth in precursor materials and photoresists [15] Electric Industry: CATL - The company achieved a net profit of 50.745 billion yuan in 2024, a year-on-year increase of 15.01% [17] - CATL maintains a leading position in the global battery market, with a 37.9% market share in power batteries and 36.5% in energy storage [18] Pharmaceutical Industry: Heng Rui Medicine - The company reported a 12.53% year-on-year increase in revenue for Q2 2024, with innovative drugs accounting for over 60% of total revenue [20] - Multiple new products were launched in the first half of 2024, contributing to growth [21] Pharmaceutical Industry: Sanyou Medical - The company faced pressure from centralized procurement but is innovating therapies to enhance market share [24] - The acquisition of Waterwood Tianpeng is expected to strengthen the product matrix and enhance competitiveness [25] Social Services Industry: Beijing Renli - The company has a broad service coverage and a strong client base, with growth potential in flexible employment and outsourcing [27] - Digitalization and AI applications are expected to enhance operational efficiency and revenue growth [28] Electronics Industry: Feiliwa - The company reported a revenue of 908 million yuan in H1 2025, with a gross margin of 49.2% [29] - New business lines are beginning to contribute to performance, particularly in semiconductor and aerospace sectors [30] Electronics Industry: Zhaoyi Innovation - The company achieved a revenue of 7.356 billion yuan in 2024, with a significant increase in net profit [32] - The company is actively expanding its market share in various sectors, including storage and MCU products [33] Electronics Industry: Pengding Holdings - The company reported a revenue of 16.375 billion yuan in H1 2025, with a net profit increase of 57.22% [35] - The company is capitalizing on market opportunities across various product lines, including communication and consumer electronics [36]

Core Viewpoint - The report from CICC maintains the EPS forecast for Aikang Medical (01789) at 0.30 CNY for 2025 and 0.36 CNY for 2026, with a target price of 7.11 HKD, indicating a potential upside of 26.73% from the latest closing price [1] Group 1: Financial Performance - In 1H25, Aikang Medical reported revenue of 694 million CNY, a year-on-year increase of 5.7%, and a net profit attributable to shareholders of 161 million CNY, up 15.3%, with diluted EPS of 0.14 CNY, aligning with CICC's expectations [1] - The company's hip joint business generated revenue of 410 million CNY, a 14% increase year-on-year, while knee joint business revenue was approximately 194 million CNY, a slight decline of 0.7% due to price adjustments and returns [2] - The gross profit margin for 1H25 was 59.1%, down 1.5% year-on-year, primarily due to a decrease in the revenue share from spinal products [4] Group 2: Growth Drivers - The company anticipates accelerated growth in overseas sales in the second half of 2025, with overseas revenue reaching 128 million CNY in 1H25, and an estimated actual growth rate of about 7% after adjustments [2] - Aikang Medical is responding to favorable policies by initiating a digital transformation, with seven products entering the innovation channel and five digital orthopedic training centers established [3] - The net profit margin increased to 23.1%, up 1.9 percentage points year-on-year, supported by revenue growth and cost control measures [4] Group 3: Market Position and Strategy - The company maintains its industry-leading position, with strong performance in Southeast Asia and Central Asia, where revenues grew approximately 60% and 30%, respectively [2] - Aikang Medical plans to build a comprehensive ecosystem covering pre-operative (AI surgical planning), intra-operative (robotics/navigation), and post-operative (patient management) phases to drive growth in orthopedic smart assistive device installations [3]

Core Viewpoint - Aikang Medical's 1H25 performance met expectations, with revenue of 694 million yuan and a net profit of 161 million yuan, reflecting year-on-year growth of 5.7% and 15.3% respectively [1][2] Business Performance - The main business showed growth in 1H25, with hip joint business revenue reaching 410 million yuan, a year-on-year increase of 14%, while knee joint business revenue was approximately 194 million yuan, a slight decline of 0.7% due to price adjustments and returns [1] - Overseas sales revenue was 128 million yuan, with an estimated actual growth rate of about 7% after adjustments for domestic delivery, particularly strong performance in Southeast Asia and Central Asia, with revenue growth of approximately 60% and 30% respectively [1] - The company is expected to see further growth in overseas revenue in 2H25, considering delays in cross-border payments [1] Policy and Innovation - Continuous favorable policies are in place, with the National Medical Insurance Bureau supporting innovative medical devices through multiple meetings [1] - The National Medical Products Administration has optimized the regulatory mechanism for high-end medical devices, supporting the development of innovative products such as surgical robots and 3D-printed orthopedic implants [1] - The company has initiated a digital transformation, with 7 products entering the innovation channel and the establishment of 5 digital orthopedic training centers, aiming to create a comprehensive ecosystem covering pre-operative, intra-operative, and post-operative phases [1] Financial Metrics - The company's gross margin was 59.1%, a year-on-year decrease of 1.5%, primarily due to a decline in the revenue share of spinal products [2] - Net profit margin increased to 23.1%, a year-on-year rise of 1.9 percentage points, driven by revenue growth and cost control [2] - The company maintains its EPS forecast of 0.30 yuan for 2025 and 0.36 yuan for 2026, with a target price of 7.11 HKD, indicating a potential upside of 26.73% from the latest closing price [2]

Macro Information and Commentary - From January to July, the total profit of national industrial enterprises above designated size reached 40,203.5 billion yuan, a year-on-year decrease of 1.7%, while revenue was 78.07 trillion yuan, a year-on-year increase of 2.3% [2] - The State Administration for Market Regulation held a symposium for individual industrial and commercial households, emphasizing that platform enterprises and financial institutions should enhance support for these businesses in terms of traffic, operational costs, financial empowerment, and capability improvement [2] Company and Industry Analysis Semiconductor Industry - The DDR4 market price continues to rise, with LPDDR4X prices also on an upward trend. Samsung has postponed the planned cessation of 1z process DDR4 production from the end of 2025 to December 2026, stabilizing DDR4 market prices in the short term, but supply shortages are expected to drive prices up in the medium to long term. Trendforce forecasts a price increase of 38%-43% for LPDDR4X in Q3 [5][6] - The SSD market has seen a slight price decline, with embedded channel prices stabilizing recently. Major NAND manufacturers are shifting capacity towards high-margin products, leading to price increases for lower-capacity products [5][6] - Investment recommendations include focusing on domestic storage manufacturers like Zhaoyi Innovation, Lanke Technology, Ju Chen Co., and Shenkong Co., as the niche DRAM market is expected to maintain mid-to-high price levels due to supply-demand dynamics [5] Medical Consumables Industry - The sales model for joint products is shifting from distribution to agency, leading to a slight decline in revenue, which is expected to stabilize in 2025. The spinal product line remains strong, with market share leading in collective procurement [7] - The company is actively expanding overseas, targeting strategic markets such as Indonesia, Brazil, Russia, and Thailand, with initial positive results from international strategies [7][8] - The company is diversifying its R&D efforts and pursuing acquisitions to drive performance, focusing on new therapies and technologies in areas like minimally invasive spine surgery and pain management [8] - Revenue projections for 2025-2027 are 1.575 billion, 1.821 billion, and 2.110 billion yuan, with corresponding net profits of 265 million, 317 million, and 361 million yuan, maintaining an "overweight" rating [8] Rare Earth Permanent Magnet Industry - The rare earth magnetic material industry saw an 11.02% increase last week, outperforming the benchmark by 6.84 percentage points. The industry valuation has risen to 99.9 times, reflecting a 7.7 times increase [9][10] - Prices for rare earth minerals have accelerated, with significant increases in praseodymium and neodymium prices due to tight inventory and strong downstream demand. The average price of praseodymium and neodymium oxide rose by 11.66% and 12.03%, respectively [9][10] - The recent release of management measures for rare earth mining and separation indicates a tightening of supply, which is expected to support prices in the short term. The demand from downstream sectors like new energy vehicles remains stable [11][12] - The industry maintains an "overweight" rating, with recommendations to focus on upstream rare earth resource companies benefiting from supply constraints and potential demand increases due to relaxed export controls [12][13] Banking Industry - Chengdu Bank reported a year-on-year revenue growth of 3.2% and a net profit growth of 5.6% in Q1 2025, with net interest income increasing by 7.6% due to strong expansion and stable interest margins [14][15] - The bank's total assets grew by 13.3% year-on-year, with loans increasing by 16.9%. The bank's asset quality remains stable, with a non-performing loan ratio of 0.66% [15][16] - The bank is expected to maintain a strong performance with projected net profit growth rates of 6.3%, 5.4%, and 4.2% for 2025-2027, maintaining an "overweight" rating [16]

Summary of Weigao Orthopedics Conference Call Company Overview - **Company**: Weigao Orthopedics - **Industry**: Orthopedic Medical Devices Key Financial Performance - **Revenue**: 741 million CNY in H1 2025, a decrease of 1.28% YoY due to adjustments in the marketing model for joint products [2][3] - **Net Profit**: 142 million CNY, an increase of 52.43% YoY [2][3] - **Sales Expense Ratio**: 26.49%, down by 10.63 percentage points YoY [2][3] Segment Performance - **Spine Products**: Revenue of 250 million CNY, up 13% YoY; Q2 saw a 21% increase from Q1 [4][5] - **Trauma Products**: Revenue of 130 million CNY [4] - **Joint Products**: Revenue of 180 million CNY, down 21% YoY due to marketing model changes [5] - **Sports Medicine and Tissue Repair**: Revenue of 143 million CNY, up 13.26% YoY [2][5] International Expansion - **Overseas Revenue**: 43.21 million CNY, up 19% YoY [6] - **Market Strategy**: Differentiated strategies for various markets, focusing on logistics in price-sensitive markets and acquisitions in high-end markets [6][10] - **Team Expansion**: Plans to expand the overseas marketing team to 30-40 members by year-end, with expected overseas revenue nearing 100 million CNY [9][10] Research and Development - **Innovations**: Focus on minimally invasive spine surgery, sports medicine, and orthopedic regenerative repair [7] - **Regulatory Approvals**: 16 Class I medical device registrations, 15 Class II, and 12 Class III in H1 2025 [7] - **Total Registrations**: 314 Class I, 45 Class II, and 160 Class III devices as of the reporting period [7] Future Development Plans - **Market Focus**: Continued emphasis on increasing domestic market share, cost reduction, and global expansion [8] - **Product Development**: Plans to enhance product lines in minimally invasive surgery and pain management [8][11] - **Automation**: Increase in automated production capabilities to modernize operations [8] Market Trends and Challenges - **Surgical Volume Growth**: Anticipated growth in surgical volumes across spine (13-15%), joint (12-15%), and trauma (single-digit) surgeries [19] - **Micro-Invasive Surgery**: Increasing trend driven by navigation and AI technologies, with a current penetration rate of about 10% in China [20][22] - **3D Printing**: Significant potential for application in orthopedics, focusing on personalized and regenerative solutions [21] Regulatory Environment - **Collective Procurement**: Ongoing adjustments in procurement policies, with a focus on rational pricing and support for innovation [28] - **Market Access**: Efforts to ensure new innovative products are included in medical insurance directories and exempt from DRG fees [29] Conclusion Weigao Orthopedics is navigating a challenging market environment with strategic adjustments in product marketing, a focus on international expansion, and a commitment to innovation in orthopedic solutions. The company is well-positioned to leverage its R&D capabilities and market strategies to enhance its competitive edge in the orthopedic medical device industry.

Group 1: Company Insights - Sanyou Medical achieved revenue of 249.76 million yuan in the first half of 2025, a year-on-year increase of 17.77%, with a net profit of 36.60 million yuan, up 2083.64% [1] - The company saw significant growth in various segments, including a 64.80% increase in revenue from Waterwood Tianpeng and a 41.10% increase in overseas revenue from Implanet [1] - The company is expanding its focus on sports medicine, AI, and surgical robotics, and has implemented its first equity incentive plan targeting key personnel in sales, R&D, and management [1] Group 2: Industry Trends - Far East Holdings has successfully supplied multiple products to a leading global AI chip company, with ongoing growth in sales [2] - The company is developing new liquid cooling technologies and has begun mass production of high-rate cylindrical batteries in the BBU sector [2] - The solid-state batteries produced by the company have an energy density exceeding 300 Wh/kg and have been delivered to international clients [2] Group 3: Financial Performance - Hengda New Materials reported revenue of 520 million yuan in the first half of 2025, a year-on-year increase of 2.55%, with net profit declining by 12.68% due to rising sales, management, and R&D expenses [3] - The company has increased its cash reserves to 260 million yuan and maintains a healthy financial status with a debt-to-asset ratio of 18% [3] - The company anticipates a growth rate of over 10% for medical packaging paper, driven by the trend of "paper replacing plastic" and domestic substitution [3] Group 4: Market Dynamics - Sulian Co. experienced a 26.30% year-on-year increase in total revenue in the first half of the year, primarily driven by growth in electric vehicle sales and rapid technological iterations in client models [4] - The company is actively developing new products in line with trends in new energy smart vehicles, including hydrogen fuel cell pipelines and high-pressure pipelines for air suspension [4] - The main business focuses on power systems for vehicles and thermal management systems for new energy vehicles, with over 70% of the processes and technologies being interconnected [4]

C O N T E N T S I . Strategy and business development 2025 Interim Results August 27, 2025 II. Key financials Strategy and business development PART ONE 01 P A R T Internationalization - Maintain the leading position in China and achieve integrated growth across domestic and international markets Digitalization - Improve operational efficiency and develop digital products ❖ Build a diversified product ecology and scale operations ❖ Meet or exceed customer needs with complete product solutions China's leadin ...