Core Viewpoint - The report from Zhongyou Securities indicates that Kefu Medical achieved a net profit attributable to the parent company of 167 million yuan in the first half of 2025, representing a year-on-year decline of 9.51% [1] Financial Performance - In H1 2025, the company implemented strategic adjustments to low-efficiency product categories and models, resulting in a gross profit margin increase of 1.8 percentage points year-on-year [1] - The core product categories showed strong growth momentum, with significant sales acceleration starting in the second quarter for self-developed ventilators [1] Product Development - Key products such as the blood glucose and uric acid integrated machine, pre-heating thermometers, and home test strips also exhibited good development momentum [1] - Continuous product iteration and channel optimization have further solidified the market position and competitive advantage of core categories, laying a solid foundation for future performance growth [1] Business Expansion - The hearing aid business has been continuously developing, with revenue growth exceeding 20% year-on-year in H1 2025 [1] - The company plans to accelerate the implementation of its digital strategy, fully utilizing a new generation retail management system to drive marketing strategy formulation, product structure adjustments, and inventory turnover management [1] Future Outlook - With the increasing proportion of old stores in the hearing aid business, there is potential for this segment to gradually turn profitable, which may become the company's second growth curve [1]

Performance Review - In H1 2025, the company achieved operating revenue of 1.496 billion, a year-on-year decrease of 4.03% [1] - The net profit attributable to the parent company was 167 million, down 9.51% year-on-year [1] - The net profit attributable to the parent company after deducting non-recurring gains and losses was 136 million, a decline of 17.98% year-on-year [1] - The company implemented strategic adjustments to low-efficiency product categories, resulting in a gross margin increase of 1.8 percentage points [1] - Revenue breakdown: Rehabilitation aids contributed 563 million (37.63%), medical care products 424 million (28.32%), and health monitoring products 271 million (18.11%) [1] Growth Potential - Certain core product categories showed strong growth momentum in H1 2025 [1] - Sales of self-developed ventilators increased significantly starting in Q2, along with good performance from blood glucose and uric acid integrated machines, pre-heating thermometers, and home testing strips [1] - Continuous product iteration and channel optimization have strengthened the market position and competitive advantage of core categories, laying a solid foundation for future revenue growth [1] Hearing Aid Business Development - The hearing aid business saw over 20% year-on-year revenue growth in H1 2025 [2] - The company plans to accelerate the implementation of its digital strategy, utilizing a new retail management system to enhance marketing strategies, product structure adjustments, and inventory turnover management [2] - As the proportion of older stores increases, the hearing aid business is expected to gradually turn profitable, potentially becoming the company's second growth curve [2] Profit Forecast - Revenue projections for 2025-2027 are 3.325 billion, 3.794 billion, and 4.316 billion, with year-on-year growth rates of 11.48%, 14.09%, and 13.77% respectively [3] - Expected net profit attributable to the parent company for the same period is 380 million, 466 million, and 548 million, with year-on-year growth rates of 21.79%, 22.63%, and 17.75% respectively [3] - Price-to-earnings ratios for 2025-2027 are projected at 22x, 18x, and 15x, with corresponding PEG ratios of 1.02, 0.80, and 0.87 [3]

Investment Rating - The investment rating for the company is "Buy" [10][15] Core Insights - The company reported a revenue of 1.496 billion yuan in H1 2025, a year-on-year decrease of 4.03%, and a net profit attributable to the parent company of 167 million yuan, down 9.51% year-on-year [4] - Strategic adjustments were made to low-efficiency product categories, resulting in a gross margin increase of 1.8 percentage points [5] - Core product categories showed strong growth momentum, with significant sales increases in self-developed respiratory machines and other key products [6] - The hearing aid business is expected to gradually turn profitable, with a revenue growth of over 20% in H1 2025, indicating the emergence of a second growth curve for the company [7] Financial Performance - Revenue projections for 2025-2027 are 3.325 billion yuan, 3.794 billion yuan, and 4.316 billion yuan, with year-on-year growth rates of 11.48%, 14.09%, and 13.77% respectively [8] - Net profit attributable to the parent company is expected to be 380 million yuan, 466 million yuan, and 548 million yuan for the same period, with growth rates of 21.79%, 22.63%, and 17.75% respectively [8] - The company’s PE ratios for 2025-2027 are projected to be 22 times, 18 times, and 15 times, with corresponding PEG ratios of 1.02, 0.80, and 0.87 [8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Viewpoints - The company reported a revenue of 1.496 billion yuan for the first half of 2025, a year-on-year decrease of 4.03%, with a net profit attributable to shareholders of 167 million yuan, down 9.51% year-on-year [4][5] - The second quarter of 2025 saw a revenue of 758 million yuan, a year-on-year increase of 0.87%, while the net profit attributable to shareholders was 76 million yuan, down 9.30% year-on-year [5] - The overall gross margin improved to 52.80% in Q2 2025, indicating effective product structure optimization [5] Revenue and Profit Analysis - The rehabilitation aids segment is the largest business area, generating 563 million yuan in revenue for H1 2025, a decrease of 6.41% year-on-year, primarily due to the streamlining of inefficient SKUs [5] - The medical care product segment achieved revenue of 424 million yuan, up 9.67% year-on-year, mainly due to the acquisition of Huazhou [5] - Health monitoring products generated 271 million yuan in revenue, a year-on-year increase of 12.89%, driven by strong sales of thermometers and home testing strips [5] Online and Overseas Market Performance - Online channels contributed 974 million yuan in revenue for H1 2025, a year-on-year increase of 3%, accounting for 67.28% of total operating income [6] - The company has implemented differentiated operational strategies for various e-commerce platforms, enhancing customer retention and repurchase rates through a refined membership system [6] - The overseas business performed exceptionally well, with revenue exceeding 100 million yuan, a year-on-year growth of over 200% [6] Strategic Acquisitions - In January 2025, the company completed the acquisition of Shanghai Huazhou, a leading domestic pressure-sensitive adhesive manufacturer, which will enhance its product line and support overseas market expansion [8] - In June 2025, the company acquired a controlling stake in Ximan Medical Systems, a well-known medical instrument retailer in Hong Kong, facilitating entry into the Hong Kong market and resource integration [8] Financial Forecast - Revenue projections for 2025-2027 are 3.58 billion yuan, 4.33 billion yuan, and 5.24 billion yuan, with growth rates of 20.0%, 21.0%, and 20.8% respectively [9] - Net profit attributable to shareholders is expected to reach 414 million yuan, 504 million yuan, and 613 million yuan for the same period, with growth rates of 32.7%, 21.8%, and 21.7% respectively [9] - The estimated EPS for 2025-2027 is 1.98 yuan, 2.41 yuan, and 2.93 yuan, corresponding to P/E ratios of 20x, 17x, and 14x [9]