Investment Rating - The investment rating for the company is maintained at "Buy" with a target price of 29.79 RMB [7]. Core Insights - The company reported a revenue of 336 million RMB for the first three quarters of 2025, representing a year-over-year increase of 15.7%. The net profit attributable to the parent company was 41.92 million RMB, up 0.5% year-over-year. In Q3 2025, revenue reached 113 million RMB, showing a year-over-year growth of 21.8% but a quarter-over-quarter decline of 5.9%. The decrease in net profit in Q3 2025 was primarily due to a significant reduction in other income, mainly government subsidies [1][2]. - The gross margin for the first three quarters of 2025 was 59.1%, an increase of 0.3 percentage points year-over-year, driven by a higher proportion of revenue from high-end products. The company is actively enhancing its commercialization capabilities while improving R&D efficiency [2]. - The overseas revenue is expected to continue its rapid growth due to improved commercialization capabilities and the approval of high-end products for CE certification, while domestic revenue is anticipated to stabilize as external industry factors are resolved [3][4]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved a revenue of 336 million RMB, with a year-over-year growth of 15.7%. The net profit attributable to the parent company was 41.92 million RMB, reflecting a slight increase of 0.5% year-over-year. In Q3 2025, revenue was 113 million RMB, marking a year-over-year increase of 21.8% but a quarter-over-quarter decrease of 5.9% [1]. - The gross margin for the first three quarters of 2025 was 59.1%, up 0.3 percentage points year-over-year, supported by a growing share of high-end product sales [2]. Product and Market Development - The company is seeing strong growth in high-end catheter products, with over 5,000 procedures completed for its pressure ablation catheter by Q3 2025. The overall revenue from this segment is expected to maintain rapid growth in 2025 [4]. - The company’s overseas revenue is projected to grow significantly due to enhanced commercialization efforts and the introduction of high-end products in new markets. Domestic revenue is expected to recover as external factors affecting the industry are alleviated [3]. Profitability and Valuation - The earnings per share (EPS) estimates for 2025-2027 have been adjusted to 0.14, 0.19, and 0.29 RMB, respectively, reflecting a downward revision of 22%, 26%, and 16% compared to previous estimates. The target price is set at 29.79 RMB, down from 31.18 RMB [5][17].

Investment Rating - The report maintains a "Recommended" rating for the company [1][9]. Core Insights - The company achieved a revenue of 413 million yuan in 2024, representing a year-on-year growth of 25.51%, and a net profit of 52 million yuan, with a remarkable increase of 815.36% [4]. - The growth in revenue is primarily driven by an increase in electrophysiological procedures and the ramp-up of core products, with Q4 revenue growth exceeding 30% [5]. - The company has expanded its three-dimensional surgical coverage to over 1,100 hospitals, with a cumulative surgical volume exceeding 70,000 cases by the end of 2024 [5]. - Internationally, the company reported an international revenue of 112 million yuan in 2024, a year-on-year increase of 62.94%, with three-dimensional surgical coverage in 21 countries [5]. Financial Performance Summary - The company’s revenue is projected to grow from 522 million yuan in 2025 to 934 million yuan in 2027, with a compound annual growth rate (CAGR) of 36.0% [6][9]. - Net profit is expected to increase from 76 million yuan in 2025 to 215 million yuan in 2027, reflecting a strong growth trajectory [6][9]. - The gross margin is projected to stabilize around 62.8% by 2027, while the net profit margin is expected to reach 23.0% [6][9]. - The company maintains a low debt level with an asset-liability ratio of 8.0% in 2024, indicating strong financial health [7][13]. Product and Market Positioning - The company is recognized as a leading domestic player in the electrophysiology market, with a comprehensive product lineup covering "ice, fire, electricity, and magnetism" technologies [8]. - The company has a first-mover advantage in atrial fibrillation products and ranks first among domestic manufacturers in three-dimensional electrophysiological surgeries [8]. - The product line includes advanced solutions such as TrueForce pressure catheters and IceMagic cryoablation series, which have shown excellent clinical performance [8]. Future Outlook - The company is expected to continue benefiting from the rapidly expanding electrophysiology market, with new products still in the ramp-up phase [9]. - Revenue forecasts for 2025-2027 have been adjusted to 5.22 billion yuan, 6.87 billion yuan, and 9.34 billion yuan respectively, reflecting a positive growth outlook [9].