Investment Rating - The investment rating for the company is "Outperform the Market" [5][20]. Core Insights - The company's revenue for the first half of 2025 remained stable at 6.644 billion, with a year-on-year decline in net profit attributable to shareholders of 9.0% [1][7]. - The medical device segment showed stable pricing, while the pharmaceutical packaging segment saw a significant increase in overseas sales, with the "ship-to-ship" sales ratio rising to 35%, an increase of nearly 10 percentage points year-on-year [2][10]. - The company has established a multi-dimensional barrier with brand image, quality control, scale effect, and cost advantages, indicating strong growth potential and industry leadership [20]. Revenue and Profitability - The company's revenue for the first half of 2025 was 66.44 billion (+0.1%), while the net profit attributable to shareholders was 10.08 billion (-9.0%), with a 12.7% decline after excluding one-time impacts [1][7]. - The gross profit margin decreased to 49.7% (down 1.2 percentage points year-on-year), reflecting pricing pressures on products [3][14]. - The net profit margin fell to 15.9% (down 1.5 percentage points year-on-year) [3][14]. Segment Performance - The medical device business generated approximately 33.0 billion in revenue, remaining stable year-on-year, but the segment profit decreased by 17.1% due to price declines and foreign exchange losses [2][10]. - The orthopedic business revenue was 7.3 billion (-1.6%), primarily due to a change in sales model for joint products, leading to lower factory prices [11]. - The interventional business revenue was 9.9 billion (-2%), with growth in the U.S., Europe, Middle East, and Africa regions [11]. Financial Forecasts - The revenue forecasts for 2025-2027 are adjusted to 137.6 billion, 148.5 billion, and 159.6 billion, with year-on-year growth rates of 5.1%, 8.0%, and 7.4% respectively [20]. - The net profit forecasts for the same period are 21.2 billion, 24.0 billion, and 26.8 billion, with year-on-year growth rates of 2.3%, 13.4%, and 11.6% respectively [20]. Cash Flow and Dividends - The operating cash flow for the first half of 2025 was 8.82 billion, with a cash content of net profit reaching 87%, indicating a healthy cash flow position [18]. - The board proposed a dividend of 4.42 billion for the first half of the year, maintaining a 50% payout ratio based on operating net profit [1][7].

证券研究报告 | 2025年09月30日 威高股份（01066.HK） 优于大市 通用耗材趋稳，药包"搭船出海"占比大幅提升 2025 年上半年公司收入持平，归母净利同比下降 9.0%。2025 年上半年公 司实现营收 66.44 亿（+0.1%），归母纯利 10.08 亿（-9.0%），扣除特殊 项目的一次性影响后同比下滑 12.7%，主要是由于部分产品降价和新产品营 销投入。董事会建议上半年分红金额 4.42 亿，拟维持 50%的分红比例（基 于经营层面的净利润，不考虑各种一次性非现金收益）。 通用医疗器械价格趋稳，医药包装"搭船出海"占比大幅提升。2025 年上 半年医疗器械业务实现营收约 33.0 亿元，同比基本持平，分部溢利同比下 降 17.1%，主要因为部分产品价格下降带来毛利损失，以及海外业务的汇兑 损失。围术期专科耗材产品同比高双位数增长，"耗材+设备"组合销售初 见成效。药品包装业务营收约为 11.7 亿元，同比持平。预充式冲管注射器 受到集采影响，拉低板块销售额与利润。预灌封注射器国供应本土客户出口 产品的"搭船出海"销量占比 35%，同比大幅提升近 10 个百分点，海外市 场放量趋势明显 ...

Investment Rating - The report initiates coverage with an "Accumulate" rating for Shandong Pharmaceutical Glass [4] Core Views - Shandong Pharmaceutical Glass is a leading player in the pharmaceutical glass industry, with negative factors gradually being digested. The collaboration with China National Pharmaceutical Group is expected to enhance market share and brand influence, benefiting from the increasing penetration of borosilicate glass and further expansion in overseas markets [8][55] - The company's fundamentals are expected to stabilize and improve, driven by inventory clearance and declining raw material prices. The significant drop in soda ash prices is anticipated to enhance profit margins [41][51] - The report highlights the long-term catalysts including the rising penetration of borosilicate glass, the release of pre-filled syringe capacity, and ongoing overseas market expansion [57][70] Financial Data and Valuation - Total revenue (in million yuan) is projected to be 4,982 in 2023, with a year-on-year growth of 19%. However, a decline to 4,921 is expected in 2025, reflecting a -4% change [3] - The net profit attributable to shareholders is forecasted to be 776 million yuan in 2023, with a growth of 25%, but is expected to decrease to 822 million yuan in 2025, showing a -13% change [3] - The price-to-earnings (PE) ratio is projected to be 18.6 in 2023, decreasing to 17.5 in 2025 [3] Company Overview - Shandong Pharmaceutical Glass is the largest pharmaceutical glass manufacturer in China, with a comprehensive product matrix covering sodium-calcium, low borosilicate, and borosilicate glass. The company provides a full range of packaging solutions including bottles, stoppers, and caps [8][24] - The company has a strong competitive advantage due to its scale, quality, and customer base, serving various sectors including pharmaceuticals, medical aesthetics, and food [8][24] Market Dynamics - The report notes that the domestic market is currently facing challenges due to insufficient demand and intensified competition, leading to short-term pressure on performance. However, it is believed that the operational situation has bottomed out and is expected to improve marginally [41][50] - The report emphasizes the importance of the upcoming change in controlling shareholder to China National Pharmaceutical Group, which is expected to provide significant support in terms of distribution channels and market share enhancement [55][56] Long-term Catalysts - The penetration rate of borosilicate glass in China is currently low at 15.4% and is expected to rise significantly due to policy support and the promotion of innovative therapies [57][58] - The company is positioned as a leader in the production of borosilicate glass, with a projected annual capacity of 170,000 tons for borosilicate molded bottles [62][65] - The pre-filled syringe project is expected to add significant capacity, with an anticipated output of 560 million units per year [70] - The company has successfully expanded its overseas market presence, exporting to over 90 countries, with foreign sales accounting for 32% of total revenue in the first half of 2025 [71]

Group 1 - The company maintains a "buy" rating and has adjusted its EPS forecasts for 2025-2027 to 0.44, 0.50, and 0.56 yuan, down from previous estimates of 0.51, 0.57, and 0.63 yuan, respectively [1] - The target price is set at 8.00 yuan (equivalent to 8.76 HKD), based on a target PE of 16X for 2026 [1] - The company reported a sales revenue of 6.64 billion yuan for H1 2025, remaining flat year-on-year, while the adjusted net profit decreased by 6.1% to 1.02 billion yuan due to price reductions and marketing investments for new products [1] Group 2 - The general medical device segment generated revenue of 3.30 billion yuan in H1 2025, remaining stable year-on-year, with slight volume growth in key products like infusion sets and syringes [2] - The pharmaceutical packaging segment also saw revenue of 1.17 billion yuan, with stable sales prices and a significant increase of approximately 200% in automatic injection pen sales [2] - The orthopedic segment's revenue was 730 million yuan, a slight decline of 1.6%, but the segment's profit increased by 74% year-on-year, with double-digit growth in spinal products [2] Group 3 - The company has maintained a high dividend payout ratio, increasing it to 40% in 2023 and planning to further raise it to 50% by the end of 2024 [2] - For the mid-year dividend in 2025, the company intends to maintain a payout ratio of 50%, reflecting its commitment to shareholder returns [2]

Investment Rating - The report maintains a rating of "Accumulate" for the company [6][10]. Core Views - The company's performance in the first half of 2025 shows stability, with revenue from pharmaceuticals and orthopedics leading the growth. The company continues to prioritize high dividend payouts, reflecting its commitment to shareholder returns [2][10]. Financial Summary - Total revenue for 2023 was 13,243.76 million RMB, with a projected increase to 13,889.42 million RMB in 2025, representing a growth of 6.1%. The net profit for 2023 was 2,001.91 million RMB, with a slight decrease expected to 2,033.02 million RMB in 2025, a decline of 1.6% [4][10]. - The company’s cash dividend ratio increased from 30% prior to 2023 to 40% in 2023, with a further increase to 50% expected by the end of 2024. The mid-year dividend for 2025 is also planned to be maintained at 50% [10]. Revenue Breakdown - The general medical device segment generated revenue of 33.0 billion RMB in the first half of 2025, remaining stable year-on-year. The pharmaceutical packaging segment also maintained revenue at 11.7 billion RMB, with significant growth in automatic injection pens, which saw a sales increase of approximately 200% [10]. - The orthopedics segment reported revenue of 7.3 billion RMB, a slight decrease of 1.6%, but with a substantial increase in segment profit by 74%. The interventional segment's revenue was 9.9 billion RMB, down by 2%, while the blood technology segment grew by 8.1% to 4.5 billion RMB [10]. Earnings Forecast - The report adjusts the earnings per share (EPS) forecast for 2025-2027 to 0.44, 0.50, and 0.56 RMB respectively, down from previous estimates of 0.51, 0.57, and 0.63 RMB [10]. - The target price for 2026 is set at 8.00 RMB, equivalent to 8.76 HKD, based on a target price-to-earnings (PE) ratio of 16X [10]. Market Data - The current stock price is 5.90 HKD, with a market capitalization of 26,967 million HKD and a 52-week price range of 4.15 to 7.22 HKD [7][10].

公司现金分红比例在2023年以前长期维持在30%，2023年全年分红比例提升至40%，2024年末期股息进 一步提升至全年50%。公司2025年中期分红拟维持50%的比例，彰显对股东回报的高度重视。 风险提示：新品放量不及预期，市场竞争加剧。 公司2025H1实现销售收入66.4亿元同比持平;经调整归母净利润(剔除汇兑损益影响)10.2亿元，同比下降 6.1%，主要系部分产品降价和新产品营销投入所致。 普耗趋稳，药包、骨科引领增长 公司2025H1通用医疗器械板块实现收入33.0亿元，同比基本持平，主要产品如输液器、留置针、注射器 等价格保持稳定，销量小幅增长;药包板块收入11.7亿元，同比基本持平，预灌封注射器国内销售单价稳 定，销量小幅增长，已与150余家新药企业开展合作，自动注射笔中国市场放量显著，2025H1销量增长 约200%，本土及海外市场均有较大潜力;骨科板块收入7.3亿元，同比略降1.6%，分部溢利同比大增 74%，其中脊柱同比环比均实现双位数增长，关节因销售模式变化表观承压，下半年有望加速放量;介 入板块收入9.9亿元，同比下降2%;血液技术板块收入4.5亿元，同比增长8.1%，其中拉德索斯 ...

Core Viewpoint - Cathay Securities maintains a "Buy" rating for Weigao Group (01066), adjusting the EPS forecast for 2025-2027 to 0.44/0.50/0.56 yuan from the previous 0.51/0.57/0.63 yuan, with a target price of 8.00 yuan (equivalent to 8.76 HKD) based on a target PE of 16X for 2026 [1] Group 1: Financial Performance - In H1 2025, the company achieved a sales revenue of 6.64 billion yuan, remaining flat year-on-year; adjusted net profit attributable to shareholders was 1.02 billion yuan, a decrease of 6.1% year-on-year, primarily due to price reductions on some products and increased marketing expenses for new products [2] Group 2: Business Segments Performance - The general medical device segment generated revenue of 3.30 billion yuan in H1 2025, remaining stable year-on-year, with key products like infusion sets and syringes maintaining stable prices and slight volume growth [3] - The pharmaceutical packaging segment reported revenue of 1.17 billion yuan, also flat year-on-year, with stable domestic sales prices for pre-filled syringes and significant volume growth of approximately 200% for automatic injection pens [3] - The orthopedic segment's revenue was 730 million yuan, a slight decline of 1.6% year-on-year, but segment profit increased by 74% year-on-year, with double-digit growth in spinal products [3] - The interventional segment's revenue was 990 million yuan, down 2% year-on-year, while the blood technology segment saw revenue of 450 million yuan, an increase of 8.1% year-on-year, with good recovery in overseas sales of the Radiosurgery device [3] Group 3: Shareholder Returns - The company has maintained a cash dividend ratio of 30% prior to 2023, increasing to 40% for the full year of 2023, and plans to further raise the dividend ratio to 50% by the end of 2024, with a proposed 50% dividend ratio for the mid-2025 period, highlighting a strong commitment to shareholder returns [4]

Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, indicating challenges in demand and increased operational costs [3][4]. Financial Performance - In H1 2025, the company achieved revenue of 2.37 billion and net profit attributable to shareholders of 370 million, reflecting a year-on-year decrease of 8.2% and 21.9% respectively [3]. - The operating cash flow was 300 million, down 49.2% year-on-year [3]. - For Q2 2025, revenue was 1.13 billion, with net profit attributable to shareholders at 150 million, showing a year-on-year decline of 14.2% and 42.0% respectively [3][5]. Profitability Metrics - The gross margin for H1 2025 was 31.6%, a decrease of 0.7 percentage points year-on-year [4]. - The final net profit margin was 15.6%, down 2.7 percentage points compared to the previous year [4]. - In Q2, the gross margin was 33.2%, a decline of 0.8 percentage points year-on-year, with a net profit margin of 13.0%, down 6.3 percentage points [5]. Cost Structure - The expense ratio for the period was 10.7%, an increase of 2.1 percentage points year-on-year, with specific increases in management and R&D expenses [4]. - In Q2, the expense ratio rose to 13.2%, with management expenses increasing primarily due to higher depreciation [5]. Market and Strategic Developments - Despite domestic demand pressures, the company has adjusted its operational strategy to diversify its business and enhance market penetration [6]. - Exports have continued to grow, particularly in molded bottles for injection and daily chemical products, with the company achieving a higher market share internationally [6]. - The company is progressing with its pre-filled syringe expansion project, with most imported equipment already in place for testing and acceptance [6].

Investment Rating - The report maintains a "Buy" rating for Shandong Pharmaceutical Glass [5] Core Views - The company reported a revenue of 2.37 billion yuan and a net profit attributable to shareholders of 370 million yuan for the first half of 2025, reflecting a year-on-year decline of 8.2% and 21.9% respectively [1] - Despite domestic demand pressure, the company has adjusted its operational strategy to diversify its business and enhance market penetration, resulting in continued growth in exports [3] - The gross profit margin for the first half of 2025 was 31.6%, a decrease of 0.7 percentage points year-on-year, while the final net profit margin was 15.6%, down 2.7 percentage points year-on-year [2] Summary by Sections Financial Performance - In Q2 2025, the company achieved revenue of 1.13 billion yuan, with a net profit of 150 million yuan, marking a year-on-year decline of 14.2% and 42.0% respectively [1][2] - The operating cash flow for the first half of 2025 was 300 million yuan, down 49.2% year-on-year [1] Cost and Profitability - The gross profit margin for Q2 2025 was 33.2%, down 0.8 percentage points year-on-year, while the expense ratio increased to 13.2%, up 4.9 percentage points year-on-year [2] - The company faced increased asset impairment losses due to rising inventory depreciation, amounting to 50 million yuan in Q2 [2] Market and Growth Prospects - The company is progressing with its pre-filled syringe expansion project, with most imported equipment already in place for testing and acceptance [3] - The forecast for net profit attributable to shareholders has been revised downwards for 2025-2027 to 802 million, 957 million, and 1.042 billion yuan, reflecting reductions of 22%, 16%, and 17% respectively [3] Valuation Metrics - The projected revenue growth rates for 2025-2027 are 6.25%, 7.42%, and 8.17% respectively, with a corresponding decline in net profit growth for 2025 estimated at -15% [4] - The company is positioned as a leader in the domestic pharmaceutical glass industry, benefiting from the increasing demand for borosilicate molded bottles and strong overseas market growth [3]

Core Viewpoint - The company's 1H25 performance slightly missed market expectations, but showed a sequential recovery, with revenue of 6.644 billion yuan, a year-on-year increase of 0.1%, and a net profit of 1.008 billion yuan, a year-on-year decrease of 9.0% [1] Performance Summary - 1H25 revenue from the medical device segment was 3.191 billion yuan, showing a year-on-year growth of 0.1%, with volume growth expected to remain in single digits due to pricing pressure from centralized procurement [1] - The pharmaceutical packaging segment generated revenue of 1.166 billion yuan, down 0.1% year-on-year, primarily affected by price reductions from centralized procurement [1] - The interventional segment reported revenue of 1.100 billion yuan, a decline of 1.3% year-on-year, impacted by tariffs and new product promotion costs [1] - The orthopedic segment achieved revenue of 733 million yuan, down 1.6% year-on-year, but saw a significant profit increase of 74% due to stabilization post-centralized procurement [1] Development Trends - The company expects continued acceleration in the second half of 2025, with centralized procurement nearing its end and favorable rules emerging [1] - New product launches in the surgical product category are anticipated to benefit from centralized procurement and import substitution, with a 40% year-on-year increase in 1H25 [1] International Expansion - In 1H25, overseas revenue reached 1.624 billion yuan, a year-on-year increase of 4%, accounting for 24% of total revenue [2] - The company is transitioning from a foreign trade model to localized management and plans to shift production capacity back to China while establishing manufacturing in Southeast Asia [2] Financial Health - As of 1H25, the company had a net cash position of 3.43 billion yuan and operating cash flow of 880 million yuan [2] - The company maintains a 50% dividend payout ratio and invested 316 million yuan in R&D, representing 4.7% of revenue [2] Profit Forecast and Valuation - Due to unexpected price reductions from centralized procurement and foreign exchange losses, the company has lowered its net profit forecasts for 2025 and 2026 by 9.9% and 10.4%, respectively [2] - The current stock price corresponds to a price-to-earnings ratio of 11.6x for 2025 and 10.4x for 2026, with a target price of 6.40 HKD, implying an upside potential of 8.5% [2]