Core Viewpoint - Enovis has completed the divestiture of its foot care brand Dr. Comfort, marking a strategic shift to focus on its core business segments of "Prevention & Recovery" and "Reconstructive" [2][4]. Transaction Structure and Use of Funds - The total transaction amount for Dr. Comfort is up to $60 million, including a $45 million upfront payment and up to $15 million in milestone payments based on future performance [3]. - Proceeds from the sale will be used to accelerate debt reduction, improve profit margins by divesting low-margin businesses, and reinvest in high-growth segments [3]. Strategic Focus - Enovis is transitioning from a diversified industrial and medical device company to a focused medical technology firm, emphasizing technology differentiation and product optimization [4]. - The divested Dr. Comfort business was part of the Prevention & Recovery segment but did not align with the current focus on orthopedic rehabilitation [5]. Characteristics of Dr. Comfort - Dr. Comfort specializes in foot care products for diabetic patients and those with foot diseases, offering therapeutic footwear and accessories [7]. - Despite its brand recognition, Dr. Comfort's growth potential and profit structure are limited, especially compared to Enovis's focus on innovative medical solutions [7]. Core Retention - Enovis retains its "Prevention & Recovery" segment, which aligns more closely with modern orthopedic and rehabilitation practices, focusing on preoperative prevention and postoperative recovery [8][11]. - This segment emphasizes collaboration with healthcare professionals and has a higher contribution to overall business synergy and profitability compared to Dr. Comfort [11]. Growth Engine - Enovis is accelerating its "Reconstructive" business, which includes a recent acquisition of LimaCorporate, enhancing its capabilities in custom implants and 3D-printed products [13]. - The revenue from the reconstructive segment has reached approximately $1 billion, positioning it as a strategic investment priority for the company [13]. Summary of Strategic Decisions - The divestiture of Dr. Comfort, despite a lower transaction value compared to its acquisition price, signals Enovis's commitment to building a synergistic network between its prevention and reconstruction business lines [14].

Core Viewpoint - Goldman Sachs maintains a "Buy" rating for Aikang Medical (01789) while slightly lowering the EPS forecasts for 2025-2026 by 2.7% and 3.1% respectively, reflecting a conservative outlook on gross margin improvement post-volume-based procurement (VBP) and introducing forecasts for 2027 [1] Financial Performance - The company reported revenue of 689 million RMB, a year-on-year increase of 54.8%, and a net profit of 135 million RMB, up 172% year-on-year, with a net profit margin of 19.5% [2] - Operating cash flow significantly improved from 344 million RMB in FY2023 to 450 million RMB in FY2024, attributed to reduced inventory days and procurement volume [2] Market Position - Aikang currently holds a 20% market share in the domestic market and is focusing on increasing its presence in top-tier hospitals, with market share in the top 10 hospitals rising from 8% in 2021 to 19% in 2024 [3] International Expansion - Overseas revenue grew by 21% year-on-year, with a 38% increase when including collaborative sales, as the company expands into emerging markets [4] - The company aims to increase the proportion of overseas revenue from 20% in FY2024 to 30% over the next five years [4] Digital Transformation - Aikang's second-generation knee joint robotic system is expected to receive approval from the National Medical Products Administration (NMPA) in 2025, with anticipated revenue from integrated solutions reaching 100 million RMB within three years [5]