Core Viewpoint - The company reported a steady growth in revenue and profit for the first half of 2025, driven by increasing demand in rehabilitation medical services and devices, alongside improved operational efficiency [1][2]. Financial Performance - In the first half of 2025, the company achieved revenue of 210 million, a year-on-year increase of 9.85% - The net profit attributable to shareholders was 69 million, up 39.71% year-on-year - The net profit excluding non-recurring items was 64 million, reflecting a 46.30% year-on-year growth - For Q2 2025, revenue reached 115 million, with a year-on-year growth of 10.23% - The net profit attributable to shareholders for Q2 was 36 million, increasing by 29.56% - The net profit excluding non-recurring items for Q2 was 33 million, up 36.27% year-on-year [1]. Operational Efficiency - In Q2 2025, the company's sales expense ratio was 19.35%, a decrease of 7.68 percentage points year-on-year - The management expense ratio was 8.99%, down by 2.00 percentage points year-on-year - These improvements indicate enhanced operational management efficiency [2]. R&D and Product Development - The company invested 11 million in R&D in Q2 2025, accounting for 9.45% of revenue - Continued investment in traditional technology platforms like electrical and magnetic stimulation, with new product registrations enhancing market share - Increased focus on R&D for radiofrequency and laser energy sources to improve product performance and competitiveness [2]. Market Expansion - The company is focusing on leading products and solutions for pelvic floor, postpartum rehabilitation, mental health, and neurological rehabilitation in the domestic market - Efforts are being made to cultivate new growth engines in the energy source aesthetic medicine matrix - Participation in international exhibitions, such as the American Clinical Transcranial Stimulation Society Annual Meeting, has garnered positive market feedback, indicating potential for overseas business growth [3]. Profit Forecast and Valuation - The company's net profit forecasts for 2025-2026 have been slightly adjusted downwards to 131 million, 151 million, and 180 million, reflecting decreases of 6.6%, 9.4%, and 8.0% respectively from previous estimates - The current price corresponds to a PE ratio of 39, 34, and 28 for 2025-2027 - The company is positioned as a leader in magnetic and electric rehabilitation devices, benefiting from the high growth potential in the rehabilitation industry and consumer upgrades, maintaining an "accumulate" rating [3].

Investment Rating - The report maintains an "Accumulate" rating for the company [5] Core Views - The company achieved steady revenue growth in Q2 2025, with a revenue of 210 million yuan, representing a year-on-year increase of 9.85%, and a net profit attributable to shareholders of 69 million yuan, up 39.71% year-on-year [1] - The growth is attributed to the continuous demand for rehabilitation medical services and devices, alongside an expanding product matrix [2] - The company is focusing on R&D innovation, with R&D expenses amounting to 11 million yuan, which is 9.45% of revenue, and is enhancing its product offerings in traditional and emerging technology platforms [2][3] - The company is also accelerating its international expansion, with positive feedback from participation in international exhibitions, indicating potential for overseas business growth [3] Summary by Sections Financial Performance - In Q2 2025, the company reported revenue of 115 million yuan, a 10.23% increase year-on-year, and a net profit of 36 million yuan, up 29.56% year-on-year [1] - For the first half of 2025, the company’s revenue was 210 million yuan, with a net profit of 69 million yuan, reflecting a 39.71% increase [1] Operational Efficiency - The sales expense ratio decreased to 19.35%, down 7.68 percentage points year-on-year, while the management expense ratio fell to 8.99%, down 2.00 percentage points, indicating improved operational efficiency [2] R&D and Product Development - The company continues to invest in R&D, focusing on traditional technology platforms and new product registrations, which strengthens its market position [2] - The company is enhancing the performance and applicability of its PicoV picosecond laser products through increased R&D investment [2] Market Expansion - The company aims to provide leading products and solutions for pelvic and postpartum rehabilitation, as well as mental and neurological rehabilitation, to ensure stable performance growth [3] - The international market is seen as a new growth engine, with ongoing efforts to gain product access qualifications [3] Profit Forecast and Valuation - The profit forecast for 2025-2026 has been slightly adjusted downwards due to increased industry competition, with net profit estimates of 131 million yuan and 151 million yuan for 2025 and 2026, respectively [3] - The current price corresponds to a PE ratio of 39 for 2025, 34 for 2026, and 28 for 2027 [3]