Investment Rating - The report maintains a "Buy" rating for the company with a target price of 26.68 CNY, based on a 46 times PE valuation for 2025 [4][7]. Core Views - The company is expected to experience a turning point in performance as the impact of centralized procurement diminishes, with a projected revenue increase of 33.9% in 2025 [12]. - The company achieved a revenue of 4.9 billion CNY in the first half of 2025, representing a year-on-year growth of 28.3%, and a net profit of 1.1 billion CNY, up 44.9% year-on-year [12]. - The company is actively expanding its international market presence, with significant progress in obtaining CE and FDA approvals for its products, indicating strong international competitiveness [12]. Financial Summary - Revenue projections for 2025-2027 are 1,079 million CNY, 1,306 million CNY, and 1,578 million CNY, respectively, with corresponding growth rates of 33.9%, 21.0%, and 20.9% [6]. - The company's net profit for 2025 is forecasted at 224 million CNY, with a year-on-year growth of 79.4% [6]. - The gross margin is expected to stabilize around 67.5% in 2025, with a net margin of 20.8% [6].

Investment Rating - The report maintains a "Buy" rating for the company and raises the target price for A-shares to RMB 27.20 and for H-shares to HKD 20.00 [3][5][13]. Core Insights - The company's revenue in 1H25 has rebounded, with domestic procurement products showing stable growth and overseas business continuing to maintain a robust growth rate. Despite a decline in gross margin due to procurement impacts, significant reductions in three major expense ratios have driven a rapid increase in net profit [3][13]. - The company reported a revenue of RMB 4.9 billion in 1H25, representing a year-on-year growth of 28%. Domestic procurement products contributed approximately 60% of revenue, while overseas revenue also grew by over 30% year-on-year [3][13]. - The company has received approvals for multiple new products, expanding its product pipeline in various segments, including orthopedics and dental fields [13]. Financial Summary - Revenue Forecast: - 2023: RMB 1,209 million - 2024: RMB 806 million - 2025E: RMB 1,085 million - 2026E: RMB 1,330 million - 2027E: RMB 1,598 million - Year-on-year growth rates: 0.6%, -33.3%, 34.7%, 22.5%, 20.2% [4][15]. - Net Profit Forecast: - 2023: RMB 278 million - 2024: RMB 125 million - 2025E: RMB 261 million - 2026E: RMB 329 million - 2027E: RMB 420 million - Year-on-year growth rates: -9.7%, -55.0%, 109.0%, 26.1%, 27.4% [4][15]. - Valuation Ratios: - PE (A-shares): 31.9 (2023), 70.0 (2024), 33.9 (2025E), 26.9 (2026E), 21.1 (2027E) - PE (H-shares): 20.7 (2023), 45.3 (2024), 22.0 (2025E), 17.4 (2026E), 13.7 (2027E) [4][15].