Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its long-term development despite short-term performance pressures [4][6]. Core Views - The company experienced a significant decline in revenue and net profit in the first half of 2025, with revenue of 16.743 billion yuan, down 18.45% year-on-year, and net profit of 5.069 billion yuan, down 32.96% year-on-year [1]. - The decline in revenue is attributed to extended cycles from public bidding to revenue recognition, reflecting orders from a period of reduced bidding last year [2]. - A recovery in medical equipment bidding activities is expected to improve domestic market revenue in the third quarter of 2025, potentially marking a turning point for the company [2]. - The company continues to invest in research and development, with R&D expenses of 840 million yuan in Q2 2025, representing 9.9% of revenue, and has achieved breakthroughs in various fields [3]. - The company has a strong domestic market presence, covering nearly 110,000 medical institutions and over 99% of top-tier hospitals in China, while also seeing robust growth in international markets [3]. Summary by Sections Financial Performance - In Q2 2025, the company reported revenue of 8.506 billion yuan, a decrease of 23.77% year-on-year, and a net profit of 2.440 billion yuan, down 44.55% year-on-year [1]. - The company's revenue from in vitro diagnostics, life information and support, and medical imaging all saw declines in the first half of 2025 [2]. Research and Development - The company increased its R&D spending to 840 million yuan in Q2 2025, a year-on-year increase of 1.47% [3]. - New products in various fields have been registered, including a new generation of monitoring devices and advanced imaging technology [3]. Market Position and Growth - The company holds a leading market share in several product categories domestically and has expanded its international presence, with significant growth in international in vitro diagnostics and chemiluminescence businesses [3]. - The company’s products are exported to over 190 countries and regions, enhancing its global market penetration [3]. Profit Forecast and Valuation - The profit forecasts for 2025-2027 have been adjusted downward due to industry procurement policies, with expected net profits of 11.309 billion yuan, 13.045 billion yuan, and 14.971 billion yuan respectively [4]. - The current price corresponds to a PE ratio of 26 for 2025, 23 for 2026, and 20 for 2027, reflecting a favorable valuation outlook [4].