CITIC Construction Investment: Maintains "Buy" rating on CR MEDICAL, expects revenue growth in 25H2 to continue the trend of 25H1
CITIC Construction Investment maintains a "Buy" rating on CR MEDICAL, expecting revenues of 9 billion, 9.199 billion, and 9.404 billion yuan for 2025-2027, respectively. In the first half of 2025, revenue was 4.525 billion yuan, a year-on-year decrease of 9.1%; net profit was 374 million yuan, a year-on-year decrease of 26.9%. The company will distribute an interim dividend of 0.05 yuan per share, and it is expected that the revenue growth rate in the second half of the year will continue the trend of the first half. In the future, attention will be paid to the high-quality development plan for state-owned enterprises in healthcare to seize industry consolidation opportunities
According to the Zhitong Finance APP, CITIC Construction Investment has released a research report maintaining a "Buy" rating for CR Medical (01515), expecting revenues of CNY 9 billion, CNY 9.199 billion, and CNY 9.404 billion for 2025-2027, with year-on-year changes of -8.67%, +2.21%, and +2.23%; net profit attributable to the parent company is expected to be CNY 529 million, CNY 529 million, and CNY 556 million, with year-on-year changes of -6.49%, +0.03%, and +4.99%. In the first half of 2025, the company achieved revenue of CNY 4.525 billion, a year-on-year decrease of 9.1%; net profit of CNY 374 million, a year-on-year decrease of 26.9%; and net profit attributable to the parent company of CNY 340 million, a year-on-year increase of 21.8%; EPS is CNY 0.27. In the first half of 2025, the company's board of directors resolved to distribute an interim dividend of CNY 0.05 per share, unchanged from the same period last year.
Looking ahead to the second half of 2025, external influences such as medical insurance payment reform and intensified regional competition still exist. The company is expected to maintain relatively stable development by leveraging the regional leading position of its hospitals and continuous investment in discipline construction, with revenue growth in 25H2 expected to continue the trend of 25H1. In the medium to long term, the company will closely monitor the progress of the national and local implementation of high-quality development plans for state-owned enterprises in the medical sector, aiming to seize opportunities in the future integration wave of China's medical industry.
The parent company, CR Health, owns non-listed medical institutions under the Aerospace System, including 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), with revenues from Aerospace System hospitals expected to exceed CNY 3 billion in 2024. In the future, the group will seize opportunities in the capital market to inject quality assets into listed companies, referencing the acquisition of LiaoJian and JiangNeng Group under the parent company in 2023, and the company is expected to achieve steady growth in scale
