CITIC Securities Maintains "Buy" Rating on CR MEDICAL (01515), Expects H2 2025 Revenue Growth to Continue H1 Trend

CITIC Securities has issued a research report maintaining a "buy" rating on CR MEDICAL (01515), projecting revenues of RMB 9.00 billion, RMB 9.199 billion, and RMB 9.404 billion for 2025-2027, representing year-over-year changes of -8.67%, +2.21%, and +2.23% respectively. Net profit attributable to shareholders is forecast at RMB 529 million, RMB 529 million, and RMB 556 million, with year-over-year changes of -6.49%, +0.03%, and +4.99%.

For the first half of 2025, the company achieved revenue of RMB 4.525 billion, down 9.1% year-over-year; net profit of RMB 374 million, down 26.9% year-over-year; and net profit attributable to shareholders of RMB 340 million, up 21.8% year-over-year, with earnings per share of RMB 0.27. In the first half of 2025, the company's board of directors declared an interim dividend of RMB 0.05 per share, unchanged from the same period last year.

Looking ahead to the second half of 2025, external factors such as healthcare payment reforms and intensified regional competition are expected to persist. The company is positioned to maintain relatively steady development leveraging its hospitals' regional leading positions and continued investment in specialty development, with H2 2025 revenue growth expected to continue the H1 2025 trend.

From a medium to long-term perspective, the company will closely monitor the progress of national and local implementation of high-quality development plans for state-owned enterprise-operated healthcare, aiming to capitalize on opportunities in China's future healthcare industry consolidation wave.

The parent company China Resources Health owns non-listed medical institutions including aerospace-related hospitals, comprising Beijing Aerospace General Hospital (tertiary comprehensive hospital with 968 open beds), Xi'an Aerospace Hospital (secondary-grade comprehensive hospital with 696 open beds), and Shaanxi Aerospace Hospital (secondary-grade comprehensive hospital with 401 open beds). In 2024, the aerospace hospital system generated revenue exceeding RMB 3 billion.

The group will seize capital market opportunities to selectively inject quality assets into the listed company. Following the precedent of acquiring Liaoning Health and Jiangxi Energy Group from the parent company in 2023, the company is expected to achieve steady scale growth.