China Securities Co., Ltd.: Maintains "buy" rating for CR MEDICAL (01515), expecting revenue growth in the second half of 2025 to continue the trend from the first half of 2025.

China Securities Co., Ltd. released a research report stating that it maintains a "buy" rating for CR MEDICAL (01515), with projected revenues of 9.00 billion yuan, 9.19 billion yuan, and 9.404 billion yuan for the years 2025-2027, with year-on-year changes of -8.67%, +2.21%, and +2.23%. The net profit attributable to the parent company is projected to be 5.29 billion yuan, 5.29 billion yuan, and 5.56 billion yuan, with year-on-year changes of -6.49%, +0.03%, and +4.99%. In the first half of 2025, the company achieved revenues of 4.25 billion yuan, a year-on-year decrease of -9.1%; achieved a net profit of 3.74 billion yuan, a year-on-year decrease of -26.9%; achieved a net profit attributable to the parent company of 3.40 billion yuan, a year-on-year increase of 21.8%; and EPS of 0.27 yuan. In the first half of 2025, the board of directors decided to distribute an interim dividend of 5 cents per share, the same as the previous year. Looking ahead to the second half of 2025, external factors such as medical insurance payment reform and intensified regional competition still exist. The company is expected to maintain relatively stable development through its regional leading position in hospitals and continued investment in discipline construction. It is anticipated that the revenue growth in the second half of 2025 will continue the trend of the first half of 2025. In the medium to long term, the company will closely monitor the progress of national and local plans for the high-quality development of state-owned enterprises in the medical industry in China, in order to seize opportunities in the future integration wave of the medical industry. The parent company, China Resources Health, owns the non-listed medical institution, Aerospace Hospital, which includes Beijing Aerospace General Hospital (a tertiary comprehensive hospital with 968 open beds), Xi'an Aerospace Hospital (a secondary comprehensive hospital with 696 open beds), and Shaanxi Aerospace Hospital (a secondary comprehensive hospital with 401 open beds). In 2024, the revenue of the Aerospace Hospital surpassed 3 billion yuan. In the future, the group will seize the opportunity in the capital market to inject high-quality assets into listed companies, similar to the acquisition of Liaoning Health and Jiangneng Group under the parent company in 2023, with the potential for steady growth in scale.