Zhejiang Merchants Securities: Maintain YUYUE MEDICAL "Buy" rating, full-year revenue and profit growth is expected

Zhejiang Merchants Securities research report pointed out that YUYUE MEDICAL's net profit attributable to the parent company in the first half of the year was 1.203 billion yuan, a year-on-year increase of 7.4%; among them, the net profit attributable to the parent company in Q2 was 578 million yuan, a year-on-year increase of 25%, with profit growth recovering quarter-on-quarter. In the first half of 2025, overseas revenue was 607 million yuan, a year-on-year increase of 26.6%. With sustained high growth in overseas revenue, the firm believes that with the recovery of demand and channel expansion in the second half of 2025, revenue and profit growth for the entire year of 2025 can be expected. By product, new products such as blood glucose and AED are still expected to achieve high growth. In the first half of 2025, by segment, the company's revenue from respiratory therapy solutions, blood glucose and POCT, home health testing, clinical instruments and rehabilitation business, and emergency segments increased by 1.9%, 20%, 15%, 3.3%, and 31% year-on-year, respectively. Among them, the respiratory therapy segment showed a positive growth trend in revenue driven by high growth in ventilator revenue and overseas expansion, while the blood glucose and emergency segments continued to maintain high growth. The company is currently in a period of overseas channel expansion and new product promotion, and sales expenses in 2025 may continue; however, under cost reduction and efficiency enhancement as well as scale effects, the net profit margin is expected to maintain a high level. Maintain "Overweight" rating