China Securities Co., Ltd.: Maintaining a "buy" rating for MICROTECH MED-B(02235) with increased volume driving high performance.

China Securities Co., Ltd. released a research report stating that it maintains a "buy" rating on MICROTECH MED-B (02235) and predicts that the company's operating income for 2025-2027 will be 531 million, 789 million, and 1.066 billion yuan respectively, with year-on-year growth of 53.78%, 48.53%, and 35.00%; net profit attributable to the mother will be 3 million, 43 million, and 93 million yuan respectively, with year-on-year growth of 103.99%, 1618.91%, and 115.63%. Based on the closing price on October 13, 2025, the corresponding PS ratios for 2025-2027 are 6.24, 4.20, and 3.11 times. The company's performance in the first half of 2025 has grown rapidly, with losses significantly narrowed, mainly benefiting from the rapid increase in sales of CGM products both domestically and internationally. Looking ahead to the second half of the year, the trend of online e-commerce and offline in-hospital volume increase of CGM products in the domestic market will continue, and the second generation CGM has entered the medical insurance systems of multiple countries in Europe in international markets. The company's overseas CGM revenue base is small, but there is a large room for market share improvement. It is expected that the rapid growth overseas will continue. On September 24th, the company announced that the indications for the core product Equil patch insulin pump have been approved by the National Medical Products Administration, expanding the target group to children and adolescents aged 3-17 with diabetes. This will become a structural increase in the second half of the year. In terms of profit, the net loss attributable to the mother in the first half of the year was 2.29 million yuan, close to breakeven. The gross profit margin is expected to remain stable in the second half of the year, and automation and cost reduction measures are expected to further optimize the expense ratio, with the potential to achieve breakeven for the whole year. In the short term, driven by the continuous increase in sales of CGM products in domestic and international markets, the company's revenue is expected to maintain high-speed growth. At the same time, with the manifestation of scale effects and the continuous deepening of cost control, the company is expected to achieve breakeven for the whole year. In the medium and long term, as the only company in China that has both patch insulin pumps and non-calibration CGM products, the company has significant advantages in product portfolio. With the successive launch of heavy-duty research products such as the second-generation insulin pump, artificial pancreas system, and the deep layout in the AI field, the company is expected to continue to consolidate its global leadership position in the field of diabetes management and open up long-term growth space.