Investment Rating - The report maintains a "Recommendation" rating for the company [1][8] Core Views - The company is experiencing revenue decline due to domestic price reductions but is expanding its market presence both domestically and internationally. The overseas sales revenue for H1 2025 reached 1.23 billion yuan, a year-on-year increase of 95.22%, accounting for 17.25% of total revenue [5][8] - The company is focused on continuous innovation and product development, with several new products recently approved for the market. The gross profit margin for H1 2025 was 69.19%, a decrease of 7.38 percentage points year-on-year, but is expected to stabilize as new products are launched [6][8] - The company has adjusted its net profit forecasts for 2025-2027 to 6.22 billion yuan, 7.64 billion yuan, and 9.33 billion yuan respectively, reflecting confidence in its growth potential driven by innovative products and international market expansion [8] Financial Performance Summary - For H1 2025, the company reported operating revenue of 714 million yuan, a year-on-year decrease of 9.24%, and a net profit of 315 million yuan, down 22.03% year-on-year. The second quarter alone saw revenues of 382 million yuan and a net profit of 185 million yuan, representing a year-on-year decline of 15.61% [4][8] - The company’s revenue projections for the upcoming years are as follows: 1,206 million yuan in 2024, 1,519 million yuan in 2025, 1,908 million yuan in 2026, and 2,399 million yuan in 2027, with expected growth rates of 32.4% in 2023 and 25.9% in 2025 [6][11] - The company maintains a strong financial position with a total market value of 13.4 billion yuan and a low debt ratio of 11.9% [7][11]