Investment Rating - The investment rating for the company is "Buy" with a previous rating of "Buy" as well [1] Core Views - The company reported a revenue of 391 million RMB for the first three quarters of 2025, representing a year-on-year growth of 17.65%. The net profit attributable to the parent company was 61.98 million RMB, showing a significant increase of 623.19% year-on-year [4] - The company is experiencing rapid growth in its ultrasonic bone knife business and has begun to make breakthroughs in its international operations, leading to a positive outlook for future development [4][6] Summary by Relevant Sections Financial Performance - The company adjusted its profit forecast, expecting net profits for 2025-2027 to be 115 million, 179 million, and 259 million RMB respectively, with corresponding EPS of 0.34, 0.54, and 0.78 RMB. The current stock price corresponds to PE ratios of 55.7, 35.7, and 24.7 times for the respective years [6][8] - The company’s revenue for Q3 was 142 million RMB, a year-on-year increase of 17.44%, with a net profit of 25.38 million RMB, up 268.13% year-on-year [9] Business Segments - The ultrasonic bone knife business showed impressive performance, with revenue of 115 million RMB in the first three quarters, a growth of 52.21% year-on-year. The company has completed its performance commitments for 2025 [9] - The international business is progressing rapidly, with the French subsidiary Implanet achieving revenue of 2.92 million euros in Q3, a growth of 26.37%, and the US market contributing 1.06 million euros, up 22.21% [9] Future Outlook - The company’s innovative products are entering a harvest phase, with recent approvals for new products enhancing its domestic product line. This is expected to stabilize domestic business growth [9]

Investment Rating - The report maintains a "Recommended" rating for the company, with a current stock price of 20.01 yuan [1]. Core Insights - The company has shown a steady growth trend in revenue, with international business performing exceptionally well. For the first three quarters of 2025, the company achieved a revenue of 391 million yuan, representing a year-over-year increase of 17.65%, and a net profit attributable to shareholders of 61.98 million yuan, up 623.19% year-over-year [4][5]. - The company's international business, particularly in the United States, has been a significant driver of growth, with U.S. revenue for the first three quarters increasing by 83.04% year-over-year [5]. - The gross margin has improved significantly, with a Q3 gross margin of 77.04%, indicating enhanced operational quality [6]. - The company has made progress in innovative products, including the approval of the JAZZ fixed tension band system, which enhances its competitive edge in the spinal surgery market [9]. Summary by Sections Financial Performance - In Q3 2025, the company reported a revenue of 142 million yuan, a year-over-year increase of 17.44%, and a net profit of 25.38 million yuan, up 268.13% year-over-year [4][5]. - The company’s revenue for the first three quarters of 2025 was 391 million yuan, with a net profit of 61.98 million yuan [4]. International Business - The U.S. market has become the largest for the company, with revenue reaching 1.8 million euros in the first three quarters, nearly doubling year-over-year [5]. - The French subsidiary, Implanet, achieved a revenue of 2.92 million euros, a year-over-year increase of 26.37% [5]. Product Innovation - The company’s innovative product, the JAZZ fixed tension band system, has received regulatory approval, enhancing its product line in spinal surgery [9]. - The company is also advancing its spinal surgery robot, which has entered the innovation channel, marking a significant milestone in its R&D efforts [9]. Financial Projections - The company is projected to achieve net profits of 87 million yuan, 160 million yuan, and 257 million yuan for the years 2025, 2026, and 2027, respectively [9].

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Insights - The company reported a revenue of 391 million yuan for the first three quarters of 2025, representing a year-on-year increase of 17.65%, and a net profit attributable to shareholders of 62 million yuan, up 623.19% [6] - The company's core growth driver, the Shuimu Tianpeng product line, continues to show rapid growth, with a revenue of 115 million yuan in the first three quarters, an increase of 52.21% [7] - The international business, particularly in the U.S. market, has become a significant growth engine, with overseas revenue reaching over 18 million yuan, nearly doubling year-on-year [7] Financial Performance Summary - For the first three quarters of 2025, the company achieved a revenue of 391 million yuan (+17.65%) and a net profit of 62 million yuan (+623.19%) [6] - The third quarter alone saw a revenue of 142 million yuan (+17.44%) and a net profit of 25 million yuan (+268.13%) [6] - The company expects revenues of 599 million yuan, 759 million yuan, and 952 million yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 32.0%, 26.8%, and 25.4% [9] Growth Drivers - The company’s ultrasound bone knife product line is experiencing rapid growth, with over 50% increase in both shipment volume and sales value for the high-margin consumables [7] - The innovative spinal surgery robot and the JAZZ system are expected to create long-term competitive advantages, with the robot entering the "innovation channel" for expedited approval [8] - The U.S. market has become the largest market for the company’s subsidiary Implanet, with a revenue growth of 83.04% year-on-year [7]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company has shown a recovery in domestic business growth, with significant increases in revenue and net profit in the third quarter of 2025. The revenue reached 142 million yuan, a year-on-year increase of 17.44%, and the net profit was 25.38 million yuan, up 268.13% year-on-year [7] - The international business continues to grow, with Implanet achieving revenue of 291.59 million euros in the third quarter, a year-on-year increase of 26.37%. The U.S. market contributed 106.20 million euros, up 22.21% year-on-year [7] - The company is expected to achieve revenue of 590 million yuan in 2025, with a net profit of 33 million yuan, corresponding to a PE ratio of 205.2 times [7] Financial Performance - For the fiscal year 2023, the company reported revenue of 460 million yuan, with a projected revenue of 590 million yuan for 2025, reflecting a growth rate of 30.1% [6][8] - The net profit for 2023 was 96 million yuan, with an expected increase to 33 million yuan in 2025, indicating a significant recovery from previous years [6][8] - The company's earnings per share (EPS) is projected to rise from 0.38 yuan in 2023 to 0.10 yuan in 2025 [6][8] Market Performance - The company's stock has experienced a decline of 26% over the past 12 months, compared to the Shanghai and Shenzhen 300 index [4]

Core Viewpoint - The company has reported strong financial performance for the third quarter of 2025, with significant growth in both domestic and international markets, particularly in the U.S. market, indicating a positive outlook for future operations and expansion efforts [6][7][8]. Financial Performance - In Q3 2025, the company achieved a revenue of 141.71 million yuan, representing a year-on-year increase of 17.44% [6]. - The net profit attributable to shareholders reached 25.38 million yuan, up 268.13% year-on-year [6]. - For the first three quarters of 2025, total revenue was 391.47 million yuan, a 17.65% increase, while net profit attributable to shareholders surged by 623.19% to 61.98 million yuan [6]. Business Segments - The domestic business showed stable growth in surgical volumes and sales performance, while international operations, especially in the U.S., continued to grow significantly [6][7]. - The company’s subsidiary, Waterwood Tianpeng, reported a revenue of 114.92 million yuan for the first three quarters, marking a 52.21% increase, with net profit rising by 179.65% [7]. Product Development - The company received regulatory approval for the JAZZ fixed tension band system in China, enhancing its product line and competitive edge in the spinal surgery market [8]. - The company’s innovative spinal surgery robot and related products have also passed the special review process for innovative medical devices, marking a significant milestone in its R&D efforts [8]. Strategic Decisions - The company has decided to waive its preferential subscription rights for a capital increase in its subsidiary, Implanet, which will reduce its ownership stake from 74.18% to between 63.72% and 64.91% [24][25]. - This decision aligns with the company's strategic planning and funding needs, allowing Implanet to raise capital for market expansion without adversely affecting the company's consolidated financial results [25][40].