Summary of Eyebright (688050.SS) Earnings Review Company Overview - **Company**: Eyebright - **Ticker**: 688050.SS - **Industry**: Ophthalmic Devices Key Financial Results - **1H25 Revenue**: Rmb 787 million, up 14.7% year-over-year (yoy) but down 1.3% compared to Goldman Sachs estimates (GSe) [1][2] - **Net Profits**: Rmb 213 million, up 2.5% yoy but down 4.4% vs. GSe [1][2] - **Gross Profit Margin (GPM)**: Stable at 65.3% in 1H25, with expectations for improvement due to higher sales of bifocal IOLs [1][6] Segment Performance - **Intraocular Lens (IOL) Sales**: Grew by 8.2% yoy in 1H25, indicating market share gains despite a decrease in overall cataract surgery volumes [1][2] - **Bifocal IOLs**: Increased revenue share post price cuts, with expectations for continued growth [2][6] - **Contact Lenses**: Sales grew by 28.9% yoy in 1H25, but growth is expected to slow in 2H25 due to price competition [2][6] - **OK Lenses**: Sales grew by 5.6% yoy in 1H25, with no immediate impact from recent policy changes [2][6] Market Trends and Insights - **Premiumization Trend**: Eyebright is benefiting from a premiumization trend in IOLs, which is expected to continue [1][2] - **Market Share**: Eyebright holds a 26% volume share in IOLs and 15.6% in OK lenses as of 2024, positioning it well for future growth [11] - **Cataract Surgery Growth**: Driven by an aging population, the market for cataract surgeries is expected to grow, benefiting Eyebright [11] Product Development and Pipeline - **New Product Approvals**: Eyebright received NMPA approvals for its PIOL product and silicone hydrogel soft contact lens in 1H25, with additional products expected to gain approval in the coming years [7][8] - **Emerging Products**: The company is focusing on expanding its product pipeline, including contact lenses and defocus lenses, which are anticipated to drive future growth [11] Investment Thesis - **Growth Potential**: Eyebright is expected to achieve a compound annual growth rate (CAGR) of 23% in earnings from 2024 to 2034, driven by market share gains and product penetration [11] - **Valuation**: The current share price is viewed as undervalued relative to growth opportunities, with a target price of Rmb 111, representing a 46% upside [12][14] Risks and Challenges - **Market Risks**: Potential risks include slower-than-expected R&D progress, policy changes, intensifying competition, and technological advancements [12] Conclusion Eyebright is positioned for growth in the ophthalmic device market, with strong financial performance, a robust product pipeline, and favorable market trends. The company is recommended as a "Buy" with a target price reflecting significant upside potential.

Summary of Eyebright (688050.SS) Earnings Review Company Overview - **Company**: Eyebright - **Ticker**: 688050.SS - **Industry**: Ophthalmic Devices Key Financial Results - **1H25 Revenue**: Rmb 787 million, up 14.7% year-over-year (yoy) but down 1.3% compared to Goldman Sachs estimates (GSe) [1][2] - **Net Profits**: Rmb 213 million, a 2.5% increase yoy, but down 4.4% vs. GSe [1][2] - **Gross Profit Margin (GPM)**: Stable at 65.3% in 1H25, with expectations for improvement due to higher sales of bifocal IOLs [1][6] Segment Performance - **Intraocular Lens (IOL) Sales**: Grew by 8.2% yoy in 1H25, indicating market share gains despite a decrease in overall cataract surgery volumes [1][2] - **Bifocal IOLs**: Increased revenue share post-price cut, with expectations for continued growth [2][6] - **Contact Lenses**: Sales grew by 28.9% yoy in 1H25, but growth is expected to slow in 2H25 due to price competition [2][6] - **OK Lenses**: Sales increased by 5.6% yoy in 1H25, with no immediate impact from recent policy changes [2][6] Market Trends and Insights - **Premiumization Trend**: Eyebright is benefiting from a premiumization trend in IOLs, which is expected to continue [1][2] - **Market Share**: Eyebright holds a 26% volume share in IOLs and 15.6% in OK lenses as of 2024, positioning it well for future growth [11] - **Cataract Surgery Growth**: Driven by an aging population, the market for cataract surgeries is expected to grow, providing a favorable environment for Eyebright [11] Product Development and Pipeline - **New Product Approvals**: Eyebright received NMPA approvals for its PIOL product and silicone hydrogel soft contact lens in 1H25, with additional products expected to gain approval in the coming years [7][8] - **Product Pipeline**: Includes various IOLs and contact lenses, with several products in different stages of development [8] Investment Thesis - **Growth Potential**: Expected earnings CAGR of 23% from 2024 to 2034, driven by market share gains and new product introductions [11] - **Valuation**: Current share price is considered undervalued relative to growth opportunities, with a target price of Rmb 111, representing a 46% upside [12][14] Risks and Challenges - **Market Risks**: Potential risks include slower-than-expected R&D progress, policy changes, and intensifying competition [12] - **Sales Pressure**: Anticipated growth pressure in contact lens sales due to price competition [2][6] Conclusion Eyebright is positioned for growth in the ophthalmic device market, with strong performance in IOLs and a promising product pipeline. The company is expected to benefit from demographic trends and premiumization, although it faces challenges from competition and market dynamics.