Core Viewpoint - The company reported a mixed performance in Q3 2025, with revenue growth but a decline in net profit, primarily due to product price changes and fluctuations in investment income [1] Financial Performance - For the first three quarters of 2025, the company achieved revenue of 1.015 billion, a year-on-year increase of 4.66%, while net profit attributable to shareholders was 429 million, a decrease of 22.46% [1] - In Q3 2025, the company recorded revenue of 300 million, a significant year-on-year increase of 64.68%, but net profit decreased by 23.63% to 114 million [1] - The gross profit margin for the first three quarters of 2025 fell by 5.10 percentage points to 70.40%, mainly due to product price reductions [4] International Business Growth - The company has been actively expanding its international business, achieving over 95% growth in overseas sales revenue in the first half of 2025, with international sales accounting for 17% of total revenue [1] - As of mid-2025, the company obtained 8 new product registration certificates overseas, bringing the total to over 100, covering 45 countries and regions [2] R&D Progress - The company has made significant advancements in R&D, with several products in various stages of approval and clinical trials, including the Cratos branched aortic stent and Hector multi-branch aortic stent system [3] - The company is also progressing in the peripheral artery intervention and oncology intervention fields, with multiple products undergoing clinical applications and regulatory reviews [3] Expense and Profitability Analysis - The company experienced an increase in expense ratios, with sales expense ratio rising by 5.40 percentage points to 14.92% due to increased overseas promotion efforts [4] - In Q3 2025, the overall net profit margin saw a significant decline of 44.05%, influenced by changes in investment income [4] Future Outlook - The company forecasts revenue growth for 2025-2027, with expected revenues of 1.489 billion, 1.852 billion, and 2.350 billion, representing year-on-year growth rates of 23.43%, 24.38%, and 26.89% respectively [5] - The projected net profit for the same period is expected to be 603 million, 755 million, and 964 million, with corresponding growth rates of 20.14%, 25.08%, and 27.80% [5]

Investment Rating - The report maintains a "Buy" rating for the company, expecting a significant price increase in the next 6-12 months [5]. Core Insights - The company reported a revenue of 332 million yuan in Q1 2025, a year-on-year decrease of 7%, and a net profit attributable to shareholders of 130 million yuan, down 30% year-on-year [2]. - The domestic market is facing short-term pressure due to changes in the market environment, leading to adjustments in product pricing and promotional strategies, while the overseas market is expanding rapidly with a sales revenue growth of over 93% year-on-year [3]. - The company has set ambitious growth targets in its employee stock ownership plan, aiming for a net profit of no less than 600 million yuan in 2025, reflecting confidence in future operations [4]. Summary by Sections Performance Overview - In Q1 2025, the company achieved a revenue of 332 million yuan, a decrease of 7% year-on-year, and a net profit of 130 million yuan, down 30% year-on-year [2]. Operational Analysis - The domestic market is under pressure, but the company maintains a leading market share in domestic active artery intervention products and is expanding its market coverage for peripheral vascular intervention products. The overseas market has seen a significant increase in sales, with new registrations in three countries and over 100 total overseas product registrations [3]. Profit Forecast and Valuation - The company is projected to achieve net profits of 606 million yuan, 794 million yuan, and 965 million yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 21%, 31%, and 22% [5].