Investment Rating - The investment rating for the company is "Buy" [2] Core Insights - The report highlights that the company, Aikang Medical, is a leading player in the domestic artificial joint market, benefiting from domestic centralized procurement and price increases, as well as successful international brand expansion. The orthopedic implant business is expected to maintain rapid growth. The company is also building a smart orthopedic ecosystem, with the K3 robot gradually commercializing, which is anticipated to support the strategic upgrade from a "manufacturer of implants" to a "provider of intelligent surgical solutions" [5][6][8] Summary by Sections 1. Company Overview - Aikang Medical is a leading enterprise in the domestic artificial joint sector, focusing on smart orthopedic surgical solutions. The company has developed a diversified business system covering hip and knee joint implants, as well as spinal and trauma implants [18][20] 2. Domestic Market Dynamics - The company is leveraging centralized procurement to increase market share and profitability. The domestic market is seeing a shift towards the replacement of imported products, with a significant increase in hospital coverage and market share. In the first half of 2025, the surgical volume in high-level hospitals increased by 33% [14][51] 3. International Market Strategy - The company employs a dual-brand strategy to capture international market growth. The "JRI" brand targets the high-end market in Europe, while the "AK" brand focuses on emerging markets, leading to a compound annual growth rate of 20.8% in overseas revenue from 2018 to 2024 [15][55] 4. Smart Solutions and Business Model - Aikang Medical is a pioneer in smart orthopedic solutions, establishing a comprehensive ecosystem for orthopedic surgery. The K3 robot is expected to enhance the company's ability to provide a new business model that integrates consumables, services, and equipment [7][17] 5. Financial Projections - The company is projected to achieve revenues of 1.548 billion yuan, 1.811 billion yuan, and 2.148 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding net profits of 322 million yuan, 370 million yuan, and 437 million yuan [8][9]