Lepu Medical (Lepu (Beijing) Medical Devices Co., Ltd.) (300003)

Equity Research Report　|　Industry: Cardiovascular Medical Devices and Integrated Healthcare　|　Report Date: September 13, 2026　|　As of the September 11, 2026 close; some market data may differ slightly due to differences in sources, update times, and calculation methodologies. The principal reference figures in the meeting notes are used below.

This report was automatically compiled by AI based on publicly available information and is for reference only. It does not constitute investment advice.

1. Executive Summary

Lepu Medical reported first-half 2026 revenue of RMB 3.214 billion, down 4.61% year on year, and net profit attributable to shareholders of RMB 499 million, down 27.71%. Non-recurring-adjusted attributable net profit fell 27.40% year on year, indicating that the impact of centralized procurement, proactive channel inventory controls, and temporary financial expense pressure continued after the company’s earnings recovery in 2025. During the same period, medical services and health management revenue increased 13.24% year on year, while medical device revenue declined 3.47% and coronary intervention revenue declined 2.71%, indicating clear pressure on traditional core businesses.

In 2025, the company generated revenue of RMB 6.483 billion, up 6.22% year on year, and attributable net profit of RMB 962 million, up 289.57%, while overall gross margin recovered to approximately 64.01%. However, the sharp increase in profit partly reflected the low base in 2024 and should not be interpreted simply as a full recovery of profitability to previous highs. By business structure, medical devices accounted for 50.20% of revenue, with a 69.89% gross margin; pharmaceuticals accounted for 33.40%, with a 64.23% gross margin; and medical services and health management accounted for 16.40%, with a 45.57% gross margin. Structural heart disease, dermatology, and medical aesthetics are the main incremental growth areas.

The company has an integrated cardiovascular platform and a relatively complete PCI product portfolio. As of the 2025 annual report, it had cumulatively applied for 2,369 patents and had more than 600 products marketed domestically and overseas. R&D spending in 2025 was approximately RMB 1.089 billion, representing 16.80% of revenue. Future growth will depend more on increasing the revenue contribution of high-value-added businesses such as structural heart disease, electrophysiology, drug-coated balloons, specialty balloons, innovative-drug licensing, and consumer healthcare, rather than simply expanding traditional stents and conventional products.

As of September 11, 2026, the share price was approximately RMB 11.22, close to the 52-week low of RMB 11.01 and below the MA5, MA10, and MA20. Recent turnover had contracted significantly from the high-volume phase in August, while institutional funds continued to show net outflows. Technically, the stock remained in a weak consolidation pattern at low levels. RSI was around 30 and the share price was close to the estimated lower Bollinger Band, suggesting potential for a short-term technical rebound, although no clear reversal signal had yet formed.

2. Company Overview

2.1 Basic Information

2.2 Core Businesses and Product Portfolio

• Medical devices: 2025 revenue of RMB 3.254 billion, accounting for 50.20% of total revenue, with a 69.89% gross margin; core businesses include coronary intervention, structural heart disease, peripheral intervention, cardiac rhythm management, electrophysiology, surgical anesthesia, and in-vitro diagnostics
• Pharmaceuticals: 2025 revenue of RMB 2.165 billion, accounting for 33.40% of total revenue, with a 64.23% gross margin; comprising RMB 1.667 billion of formulations, RMB 271 million of APIs, and RMB 227 million of innovative drugs and external licensing
• Medical services and health management: 2025 revenue of RMB 1.063 billion, accounting for 16.40% of total revenue, with a 45.57% gross margin; including cardiovascular specialty hospitals, medical diagnostic laboratories, pharmaceutical and medical-device e-commerce, optometry, dermatology, and health management
• Coronary intervention: 2025 revenue of RMB 1.644 billion, up 1.39% year on year; products cover PCI procedures including diagnosis, access establishment, lesion treatment, and stent or balloon therapy
• Structural heart disease: 2025 revenue of RMB 528 million, up 12.41% year on year; products include occluders, transcatheter aortic valve systems, and atrial septal puncture systems
• Surgical anesthesia and in-vitro diagnostics: 2025 revenue of RMB 405 million from surgical anesthesia and RMB 281 million from in-vitro diagnostics
• Dermatology within medical services and health management: 2025 revenue of approximately RMB 115 million; the company regards this business as a way to reduce reliance on traditional reimbursement and centralized-procurement businesses and develop consumer healthcare

2.3 Position in the Upstream and Downstream Value Chain and Cost-Profit Structure

Lepu Medical occupies a core midstream position in the cardiovascular healthcare value chain. Upstream, it connects with suppliers of medical metals, polymer materials, drug coatings, electronic equipment, and precision components; downstream, it connects with hospitals, distributors, pharmacies, overseas channels, patients, and consumers. The company’s business structure is characterized by medical devices as the core, supplemented by pharmaceuticals and medical services.

• Upstream medical-device materials mainly include nickel-titanium alloys, cobalt-based alloys, stainless steel, other medical metals, polymer materials, drugs and drug-coating materials, precision machining, laser cutting, micro-welding and surface-treatment materials, as well as electronic components, sensors, imaging-equipment components, and software systems.
• Pharmaceutical upstream inputs mainly include APIs, excipients, and packaging materials. Medical services and diagnostic businesses also require consumables, equipment, and labor.
• In 2025, raw-material costs were approximately RMB 421 million, accounting for 42.96% of medical-device cost of sales; pharmaceutical raw-material costs were approximately RMB 413 million, accounting for 53.28% of pharmaceutical cost of sales.
• Procurement from the top five suppliers in 2025 was approximately RMB 178 million, representing 7.04% of total annual procurement. Procurement from related parties accounted for 4.84%. These figures come from the annual report and indicate low supplier concentration, although related-party procurement remains worth monitoring.
• The company has numerous suppliers and combines general procurement with outsourced procurement. Supplies of basic medical metals, polymer materials, and conventional packaging materials are relatively market-oriented, limiting the company’s bargaining power. Complex catheters, precision components, specialty coatings, and certain customized parts face certification and market-access barriers.
• The company’s scale and large supplier base support procurement bargaining power and supply-chain security, although imported equipment, specialty materials, and high-end electronic components may still involve technology or supply-chain dependence.
• Medical-device customers mainly include tertiary hospitals, secondary hospitals, cardiovascular specialty hospitals with PCI capabilities, medical-device distributors and regional agents, overseas distributors, and OEM customers.
• Pharmaceutical customers mainly include hospitals and medical institutions, retail pharmacies, online pharmaceutical e-commerce platforms, and regional pharmaceutical distributors. Medical services and health management directly serve hospitals, patients, consumers, and corporate customers.
• The company uses multiple sales channels: hospital-based device sales mainly use distributors and professional sales teams, while certain medical equipment is sold directly or through project sales; pharmaceuticals are sold through the company’s own sales force, pharmacies, and centralized-procurement channels; consumer healthcare is sold through offline institutions, e-commerce, and DTC channels; overseas operations are developed through distributors, regional sales networks, and OEM cooperation.
• Sales to the top five customers in 2025 totaled approximately RMB 387 million, representing 5.97% of annual sales; the largest customer accounted for 2.05%. These figures come from the annual report. Customer names were disclosed anonymously, and only 2025 data were provided, making it impossible to determine the specific hospitals, distributors, or overseas customers. The latest annual report shall prevail.
• Customer concentration is low, but downstream bargaining pressure mainly comes from national and local volume-based procurement of high-value consumables, hospital access, reimbursement, DRG/DIP payment methods, distributor channels, and the pricing and supply requirements of major hospitals and regional procurement platforms.
• Coronary stents have already undergone national centralized procurement, with prices falling sharply. Competition has shifted from high-price single-product sales to competition in scale, clinical evidence, channels, and product portfolios. Profitability of conventional metal stents has been compressed.
• Future gross-margin improvement will depend more on volume growth in drug-coated balloons, specialty balloons, bioabsorbable devices, structural heart disease, electrophysiology, and neuromodulation products that are outside centralized procurement or are innovative products.
• The top five customers accounted for 5.97% of sales in 2025, while the top five suppliers accounted for 7.04% of procurement. Concentration on both sides was low. Medical-device inventory increased 16.21% year on year in 2025, while pharmaceutical inventory increased 54.64%. Pharmaceutical production grew faster than sales, suggesting some inventory and channel digestion pressure. Net operating cash flow was RMB 1.517 billion, above attributable net profit of RMB 962 million, but this included non-cash items such as depreciation and amortization and cannot be equated fully with improved downstream collection quality. This study was unable to extract complete 2025 accounts-receivable balances, aging data, or receivables turnover days; therefore, no quantitative conclusion is drawn regarding the actual number of days that hospitals or distributors occupied funds. Relevant data should be based on the notes to the 2025 annual-report financial statements.
• Top-five supplier procurement in 2025 was approximately RMB 178 million, representing 7.04% of total annual procurement, with related-party procurement accounting for 4.84%. Top-five customer sales were approximately RMB 387 million, representing 5.97% of annual sales, with the largest customer accounting for 2.05%. These concentration figures come from the annual report. Customer and supplier names were disclosed anonymously, and customer concentration data currently available cover only 2025. The specific customer structure could not be further cross-checked and should be verified against the latest annual report.

The company occupies a core midstream position in the cardiovascular healthcare value chain. Traditional metal stents, conventional balloons, and generic drugs are closer to the midstream manufacturing segment and are vulnerable to centralized procurement, price competition, and channel expenses. Drug-coated balloons, specialty balloons, bioabsorbable stents, intravascular imaging, structural heart disease, and electrophysiology products occupy relatively higher-value-added positions within the midstream segment. Medical services, consumer healthcare, innovative-drug licensing, and AI healthcare have stronger brand, technology, or service attributes. Further margin improvement will depend not on simply expanding traditional stent capacity, but on increasing the revenue contribution of high-value-added businesses such as innovative devices, structural heart disease, electrophysiology, neuromodulation, innovative drugs, and consumer healthcare.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

Non-recurring-adjusted attributable net profit in the first half of 2026 was RMB 481 million, down 27.40% year on year; basic EPS was approximately RMB 0.2709. Net cash flow from operating activities was RMB 633 million, down approximately 0.6% year on year. Attributable net assets at period-end were approximately RMB 16.398 billion, up approximately 1.8% from the end of 2025. Non-recurring-adjusted attributable net profit in 2025 was RMB 842 million, up 280.48% year on year, and basic EPS was RMB 0.5219.

Revenue and profit both declined year on year in the first half of 2026, mainly due to centralized procurement involving medical devices and pharmaceuticals, proactive channel inventory controls, and temporary financial expense pressure related to the redemption of convertible bonds. Medical-device revenue declined 3.47% year on year, while coronary intervention revenue declined 2.71%. Medical services and health management revenue increased 13.24%, with dermatology and medical aesthetics as the main growth drivers. The sharp increase in 2025 profit was partly attributable to the low base in 2024 and does not fully indicate a return of profitability to previous highs.

3.2 Earnings Forecasts

Institutional consensus data are as of September 10, 2026. During the preceding six months, 12 institutions issued forecasts for FY2026, while 10 institutions issued forecasts for 2028. These figures summarize broker research reports and are not official company guidance. Institutions differ in their assumptions regarding the impact of centralized procurement, the ramp-up of medical-aesthetics products, innovative-drug R&D progress, and commercialization of brain-computer-interface businesses.

3.3 Valuation and Institutional Ratings

At the September 11, 2026 close, the share price was approximately RMB 11.18. The dynamic P/E was approximately 26.75x, non-recurring-adjusted P/E approximately 31.18x, P/B approximately 1.15x, and total shares approximately 1.843 billion. Based on Tonghuashun consensus forecasts, 2026–2028 EPS was approximately RMB 0.59, RMB 0.70, and RMB 0.78, corresponding to forecast P/E multiples of approximately 19.0x, 16.0x, and 14.3x. Based on China Securities Co., Ltd. forecasts, the corresponding P/E multiples were approximately 24.3x, 19.3x, and 16.2x; based on Guolian Minsheng Securities forecasts, approximately 21.5x, 19.3x, and 16.7x. The publicly compiled target-price range over the preceding six months was RMB 16.24–24.00, with an average of approximately RMB 21.03. Orient Securities had the lowest target price, while Huatai Securities’ target price was RMB 22.84. Current P/B was approximately 1.15x, relatively low, but P/E was not particularly low. Valuation attractiveness depends mainly on whether earnings after 2027 can be delivered. Target prices and earnings forecasts face risks including centralized procurement, recovery of traditional businesses, medical-aesthetics product ramp-up, innovative-drug R&D and approvals, and slower-than-expected commercialization of brain-computer interfaces. Some institutions materially lowered their forecasts after the 2026 interim report.

4. Recent News and Announcements

4.1 Extraordinary General Meeting Approved Three Proposals Including Interim Dividend

On September 9, 2026, Lepu Medical held its second extraordinary general meeting of 2026 and approved proposals on interim profit distribution, the completion and termination of certain fund-raising projects, and the supplementary election of a non-independent director. Approval rates were 99.5110%, 99.4511%, and 99.2615%, respectively, and no proposal was rejected. The announcement summary did not disclose the name of the supplementary director; subsequent announcements and corporate-registration information should prevail. Source: Sina Finance shareholders’ meeting resolution announcement.

4.2 Interim Dividend Plan Approved by Shareholders

The company proposed a cash dividend of RMB 1.6275 per 10 shares, including tax, based on the total number of shares on the equity-registration date. No bonus shares or capitalization of reserves were proposed. Based on the 1,843,424,716 shares disclosed in the 2026 interim report, total cash dividends are estimated at approximately RMB 300.02 million. The final amount will depend on the actual number of shares on the registration date. Approval among minority shareholders was 82.9698%. Source: Sina Finance shareholders’ meeting resolution announcement.

4.3 Certain Fund-Raising Projects Completed and Certain Overseas R&D Projects Terminated

The company proposed completing or terminating certain projects funded by its 2021 convertible-bond issuance. Several product subprojects that had been completed and approved for marketing in China were closed, leaving approximately RMB 52.6803 million in surplus proceeds. Due to an adjustment in R&D strategy, certain overseas R&D plans for bioabsorbable coronary and peripheral stents in the EU and other overseas regions were terminated, leaving approximately RMB 353.40 million. The combined RMB 406.0803 million is proposed to permanently supplement working capital. The proposal was approved at the extraordinary general meeting on September 9, 2026.

4.4 Proposed Transfer of 54.2384% Stake in Shanghai Minova Biotechnology to a Controlling Subsidiary

On August 22, 2026, the company announced a proposed transfer of its 54.2384% stake in Shanghai Minova Biotechnology Co., Ltd. to controlling subsidiary Lepu Medical Technology (Shanghai) Co., Ltd. for RMB 1,088,387,980, or approximately RMB 1.088 billion. Sixty percent is payable after the closing conditions are satisfied or appropriately waived, and the remaining 40% is payable within 18 months from completion of the corporate-registration change. Following completion, XinTai Medical will become the controlling shareholder of Shanghai Minova. The transaction is an internal equity transfer between the listed company and its controlling subsidiary, does not change the scope of consolidated statements, and does not constitute a related-party transaction or material asset restructuring. However, closing conditions and payment of the remaining consideration remain uncertain.

4.5 Proposed Application for Acquisition Loan of up to RMB 315 Million

The board approved an application to Industrial Bank for an acquisition loan of up to RMB 315 million, with Lepu Pharmaceutical Co., Ltd. as co-borrower. The loan is intended to pay or replace the consideration for Lepu Pharmaceutical’s acquisition from Bio-Thera Solutions, Ltd. of intangible assets related to the “Betta Ning” drug marketing authorization, intellectual property, manufacturing technology, and commercialization rights. The final loan amount and terms are subject to bank approval. Shareholder approval is not required.

4.6 Return of RMB 400 Million in Idle Proceeds Temporarily Used to Supplement Working Capital

On August 17, 2026, the company returned RMB 400 million of idle proceeds previously used to temporarily supplement working capital to the designated proceeds account in full and on schedule. The usage period did not exceed 12 months, and the sponsor and sponsor representative were notified. This represented the return of fund-raising proceeds and did not constitute a new cash inflow.

4.7 MWN117 Injection Received Clinical-Trial Approval

On August 17, 2026, Shanghai Minova, the company’s controlling subsidiary, received a clinical-trial approval notice from the National Medical Products Administration. MWN117 injection, an siRNA drug targeting INHBE, was approved for clinical trials in overweight or obese patients. According to the company’s disclosed nonclinical studies, the drug alone reduced animal body-fat and visceral-fat ratios and increased muscle mass; these effects were further enhanced when combined with a GLP-1 receptor agonist. The pharmacological effect of a single injection lasted up to 12 weeks. The project remains in an early R&D stage and faces risks including clinical failure, regulatory failure, a lengthy development cycle, and intensified competition.

4.8 No More Than RMB 600 Million of Sci-Tech Innovation Exchangeable Corporate Bonds Proposed by the 725 Research Institute

On August 13, 2026, China Shipbuilding Industry Corporation’s 725 Research Institute, a shareholder holding more than 5%, proposed a private placement of sci-tech innovation exchangeable corporate bonds to professional investors, using part of its Lepu Medical A shares as the underlying assets. The proposed fundraising amount is no more than RMB 600 million, and the Shenzhen Stock Exchange has issued a no-objection letter. As of the announcement date, the 725 Research Institute held 244,063,788 shares, representing approximately 13.24% of total shares. The transaction does not mean the shareholder has already reduced its stake, but the bonds may be converted into company shares in the future. The actual issue size, exchange price, exchange period, and exchange ratio require monitoring.

4.9 Controlling Shareholder’s Share-Pledge Ratio Approximately 11.33%

According to the individual-stock calendar of East Money, as of September 11, 2026, the total share-pledge ratio was approximately 11.33%, involving approximately 209 million shares in nine pledges. These data come from a third-party market-data and announcement aggregation page and should be further checked against the company’s latest pledge announcements and China Securities Depository and Clearing Corporation data. On July 9, 2026, the controlling shareholder, Pu Zhongjie, released a pledge of 32 million shares previously pledged to China Galaxy Securities.

4.10 Information on Actual Controller’s Share Purchases Requires Verification Against Company Announcement

Tonghuashun’s shareholder data page indicated that Pu Zhongjie purchased approximately 853,700 shares on August 24, 2026, at an average transaction price of approximately RMB 11.71 per share. The information primarily comes from a third-party shareholder database. This search did not identify the corresponding original independent purchase announcement from Lepu Medical, so the information should be labeled third-party data pending verification against a company announcement.

4.11 No New September Buyback Update or Earnings Forecast Announcement Identified

As of September 12, 2026, this search did not identify a new share-buyback progress announcement or a 2026 full-year or first-three-quarter earnings forecast announcement disclosed by the company in September 2026. The company’s previous buyback plan remained in progress. Cumulative repurchases totaled approximately RMB 90.97 million as of April 30, 2026, but no latest cumulative amount as of September 2026 was identified. The old figure should not be treated as representative of the current status.

4.12 First-Half 2026 Attributable Net Profit Declined Year on Year

The company disclosed its 2026 interim report on August 22, 2026. A third-party announcement summary indicated that first-half attributable net profit was approximately RMB 499 million, down 27.71% year on year. This was actual data disclosed in a periodic report, not an earnings forecast.

4.13 No New Regulatory Penalties or Exchange Inquiry Letters Identified

As of September 12, 2026, searches covering Lepu Medical and its August–September 2026 announcements identified no new regulatory penalties, exchange inquiry letters, or major regulatory-policy matters. Some announcements may be subject to disclosure delays, incomplete search-engine indexing, or publication only in the CNINFO announcement system. CNINFO and Shenzhen Stock Exchange announcements should remain the final sources for verification.

5. Share-Price Performance and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, Lepu Medical closed at RMB 11.22, in the lower portion of its 52-week range of RMB 11.01–21.60 and below MA5, MA10, and MA20. The moving-average system remained weak. The share price was close to the estimated lower Bollinger Band of approximately RMB 11.12, and RSI was around 30, suggesting potential for a short-term technical rebound but no clear reversal signal. On the flow side, recent turnover contracted from approximately RMB 311–560 million in mid-to-late August to approximately RMB 122–186 million. Institutional funds recorded a net outflow of approximately RMB 1.8863 million on September 11, indicating low-level weak consolidation. A high-volume break below RMB 11.01–11.10 would raise the risk of a new 52-week low; a high-volume move above the RMB 11.45–11.75 resistance area could represent an initial repair of the weak short-term structure.

5.3 Short-Term Outlook (Next Week; Scenario Analysis for Reference Only)

⚠️ Risk warning: The following is a subjective scenario analysis based on closing data as of September 11, 2026 and historical prices. It does not constitute investment advice or a definitive forecast of future share-price performance.

① Key Technical Levels

② Scenarios for the Next Week (Subjective Weights, Not Statistical Probabilities)

• Low-level consolidation (relatively higher subjective heuristic weight, approximately 50%–60%; based on the current technical pattern, fund flows, and volume structure rather than a statistical probability): The potential range is RMB 11.10–11.55. Conditions include holding RMB 11.10–11.25, turnover remaining near the recent norm of approximately RMB 120–180 million, narrowing institutional net outflows, and no clear systemic decline in the pharmaceutical and healthcare sectors. Under this scenario, the share price may oscillate around RMB 11.20–11.50, although RMB 11.45–11.75 may continue to face moving-average resistance.
• Further weakness (medium subjective heuristic weight, approximately 30%; based on the current technical pattern, fund flows, and volume structure rather than a statistical probability): The potential range is RMB 10.80–11.10. Conditions include a high-volume break below RMB 11.10, daily turnover materially above recent norms with the close near the intraday low, expanding institutional net outflows, and simultaneous weakness in medical devices or pharmaceuticals or signs of forced deleveraging by margin traders. A decisive break below the RMB 11.01 52-week low could reinforce the weak structure, with subsequent support to be determined after a new low forms.
• Stronger rebound (low subjective heuristic weight, approximately 10%–20%; based on the current technical pattern, fund flows, and volume structure rather than a statistical probability): The potential range is RMB 11.45–11.90, with a strong scenario testing RMB 12.00–12.10. Conditions include reclaiming RMB 11.45 and holding above it, daily turnover rising to approximately RMB 200 million or more, institutional funds shifting from net outflows to consecutive net inflows, simultaneous strength in medical-device shares, and a further break above RMB 11.75. If the price rises while turnover remains around RMB 120–150 million, the sustainability of the rebound would remain uncertain.

③ Funding and Liquidity Background

As of September 11, 2026, turnover was approximately 0.90%, daily turnover value was approximately RMB 159 million, and turnover value over the preceding several trading days was approximately RMB 122–186 million, materially below the high-volume period of approximately RMB 311–560 million from August 20 to August 24. Recent institutional funds recorded a net outflow of approximately RMB 1.8863 million, with no sustained or clear net-inflow signal. As of June 30, 2026, the top 10 free-float shareholders held 32.69% of free-float shares, and the number of shareholders was 103,951. The top 10 shareholders included the controlling shareholder and related parties, medical ETFs, Hong Kong Securities Clearing Company Limited, and insurance funds. Institutional holdings were dispersed and were not dominated entirely by public funds, social-security funds, or QFII. These shareholder data are subject to a quarterly disclosure lag and may have changed before September 11, 2026. From a trading perspective, Lepu Medical is not a low-liquidity small-cap stock, but its recent turnover rate and turnover value were both below the earlier high-volume phase. If order-book depth is insufficient, larger transactions may cause more significant price slippage. This conclusion is based only on disclosed turnover and turnover-rate data and does not represent a real-time order-book assessment.

A measurable volume-confirmation signal would be a subsequent increase in daily turnover to approximately RMB 200 million or more for consecutive sessions, accompanied by a close above RMB 11.45–11.55. This could indicate improved short-term participation. If turnover rises while the share price still closes around RMB 11.10 or lower, the move would more likely represent high-volume selling rather than capital inflow.

④ Key Points to Monitor (Observational Framework Only, Not Trading Instructions)

• Monitor whether the first support area of RMB 11.10–11.25 can stabilize on lower volume and whether the strong-support area of RMB 11.01–11.10 is decisively breached.
• Monitor whether a rebound can reclaim the RMB 11.45–11.75 moving-average resistance area and move toward the stronger resistance area of RMB 11.90–12.10.
• Monitor whether daily turnover can remain above approximately RMB 200 million and coincide with the price moving above RMB 11.45–11.55.
• Monitor whether institutional funds shift from recent net outflows to consecutive net inflows. These are observational considerations only and are not trading instructions.

The above scenarios are based on the September 11, 2026 closing data, historical prices, and technical-indicator calculations. Short-term share prices may also be affected by news, fund flows, broader market conditions, and other factors. Technical indicators have inherent lag and limitations. This analysis does not guarantee actual future performance and does not constitute a buy or sell recommendation. Investors should make independent judgments based on the latest market information and bear their own investment risks.

6. Industry Landscape and Competitor Analysis

6.1 Industry Conditions

Lepu Medical spans high-value medical consumables, medical equipment, in-vitro diagnostics, pharmaceuticals, and medical services, but its core competitive area is cardiovascular interventional medical devices. The industry has technological, clinical, registration, and quality-system barriers. Products require clinical validation and physician training, while hospital access and distributor channels are relatively sticky. At the same time, centralized procurement of high-value consumables continues to pressure prices and margins of traditional products, while innovative devices, complex-lesion devices, and structural heart disease products retain growth potential.

6.2 Competitive Landscape

• Coronary stents became one of the first products subject to national volume-based procurement of high-value medical consumables in 2020. Prices of selected stents fell below RMB 1,000, shifting the industry from high-price sales to competition based on scale, low prices, and clinical quality.
• A 2026 real-world study released by the National Healthcare Security Administration found no statistically significant difference in the two-year incidence of major adverse cardiovascular events among more than 90,000 patients before and after centralized procurement. The study information came from the NHSA materials cited in the research notes.
• Coronary stents are one of the more highly localized segments of China’s cardiovascular intervention market. Competition has expanded from stents to drug-coated balloons, specialty balloons, intravascular imaging, complex-lesion treatment, and integrated PCI solutions.
• Major coronary-stent participants include MicroPort Medical, Lepu Medical, BrosMed Medical under Biosensors Medical, Jinruikaili, Yisheng Technology, Abbott, Medtronic, Boston Scientific, and Biotronik.
• Major structural-heart competitors include MicroPort and related platforms, Venus Medtech, Lifetech Scientific, Balancemed, Edwards Lifesciences, Medtronic, and Abbott. The segment has high technical barriers and long clinical cycles and requires extensive physician training and procedural adoption.
• Major companies in electrophysiology and cardiac rhythm management include APT Medical, MicroPort EP and MicroPort, Lepu Medical’s Lepu Medical Electronics, Medtronic, Abbott, Boston Scientific, and Biotronik.
• Key industry pressures include centralized procurement of high-value consumables, reimbursement, and distributor bargaining power. Main development directions are innovative devices, complex-lesion treatment, structural heart disease, electrophysiology, neuromodulation, innovative drugs, and consumer healthcare.

6.3 Major Competitors

Compared with specialized competitors, Lepu Medical’s advantages include its integrated cardiovascular platform, relatively complete PCI product portfolio, domestic hospital channels, and integration of devices, pharmaceuticals, and medical services. Compared with integrated high-end device platforms such as MicroPort, Lepu Medical is differentiated by pharmaceuticals, medical services, and domestic channels. However, its traditional stent business is constrained by centralized procurement, while it continues to face competition from APT Medical, MicroPort EP, and global leaders in high-end electrophysiology equipment, three-dimensional mapping systems, and complex ablation technologies. The company’s current value-chain positioning is that of an integrated healthcare platform seeking to “maintain scale through traditional centralized-procurement businesses, increase value added through innovative devices, and find a second growth curve through pharmaceuticals and consumer healthcare.”

7. Risk Factors

• Centralized procurement and reimbursement pressure may continue to suppress traditional device profitability. Coronary stents have already undergone national centralized procurement, materially constraining prices and margins of traditional metal stents. In the first half of 2026, medical-device revenue declined 3.47% year on year and coronary intervention revenue declined 2.71%. If drug-coated balloons, specialty balloons, structural heart disease, and electrophysiology products ramp up more slowly than expected, medical devices may continue to weigh on overall results.
• The pharmaceutical business faces inventory and channel-digestion risks. Pharmaceutical inventory increased 54.64% year on year in 2025, and production grew faster than sales. Although pharmaceutical revenue and gross margin recovered in 2025, it remains necessary to monitor whether growth can translate into terminal sales, collections, and sustainable profit. Poor inventory digestion could create pressure from promotions, impairments, or lower margins.
• The first-half 2026 earnings decline may indicate that the foundation of the earnings recovery remains unstable. First-half attributable net profit fell 27.71% year on year and non-recurring-adjusted attributable net profit fell 27.40%, while results were also affected by centralized procurement, channel inventory controls, and temporary financial expenses related to convertible-bond redemption. The high growth rate in 2025 was also influenced by the low base in 2024. If earnings recovery falls short of institutional forecasts, valuation pressure may increase.
• Innovative R&D and product commercialization remain uncertain. The company proposed terminating certain overseas R&D programs for bioabsorbable coronary and peripheral stents. MWN117 injection has only been approved for clinical trials in overweight or obese patients and faces risks including clinical failure, regulatory failure, a lengthy development cycle, and intensified competition. These projects cannot yet make a meaningful contribution to current earnings.
• Internal equity and funding arrangements face execution risks. The company proposed transferring its 54.2384% stake in Shanghai Minova to controlling subsidiary Lepu Medical Technology (Shanghai) for approximately RMB 1.088 billion, with the remaining 40% of the consideration payable within 18 months after the corporate-registration change. It also proposed applying for an acquisition loan of no more than RMB 315 million to fund pharmaceutical-related intangible-asset consideration. Closing, final payment, financing approval, and subsequent use of funds remain uncertain.
• Shareholder structure and potential supply pressure require monitoring. Shareholder 725 Research Institute, which holds more than 5%, proposed issuing no more than RMB 600 million of sci-tech innovation exchangeable corporate bonds that could eventually be converted into Lepu Medical shares. As of the relevant disclosure, the total share-pledge ratio was approximately 11.33%, based on third-party aggregation. Future conversion, changes in pledges, or weaker market liquidity could increase share-price volatility.
• The share price remains technically weak. As of the September 11, 2026 close, it was approximately RMB 11.22, near the 52-week low of RMB 11.01 and below MA5, MA10, and MA20. A high-volume break below RMB 11.01–11.10 could extend the weak trend. The margin balance represented approximately 6.24%–6.90% of free-float market capitalization; continued weakness could create forced deleveraging pressure.

8. Conclusion and Outlook

Lepu Medical’s medium- and long-term growth thesis is to maintain scale and channel foundations through traditional centralized-procurement businesses while improving its product mix and earnings quality through structural heart disease, electrophysiology, neuromodulation, innovative drugs, consumer healthcare, and overseas operations. Structural heart disease revenue increased 12.41% year on year in 2025, overseas revenue increased 25.45%, and medical services and health management continued to grow rapidly in the first half of 2026, indicating some support from diversification. The company has substantial R&D investment and product-registration reserves. After completing certain fund-raising projects and terminating some overseas R&D programs, it proposed using approximately RMB 406 million of surplus proceeds to permanently supplement working capital, reflecting an adjustment in the allocation of R&D resources and capital.

Near-term earnings remain in a verification phase. Revenue and profit declined simultaneously in the first half of 2026. Pharmaceutical inventory increased 54.64% year on year in 2025, and pharmaceutical production grew faster than sales. It will therefore be important to observe whether subsequent revenue recovery translates into terminal sales and cash collections. Institutional forecasts for 2026–2028 vary significantly, with 2026 attributable net profit estimates ranging from RMB 845 million to RMB 1.290 billion. Valuation support will depend on easing pressure in traditional businesses and the delivery of growth from innovative businesses.

From a technical and valuation perspective, the current share price is near its 52-week low, and P/B is approximately 1.15x–1.27x. However, the dynamic P/E is approximately 26.8x–27.0x, so valuation cannot be justified simply by the low P/B. The market is still waiting for evidence that the earnings recovery is sustainable. Key areas to monitor include the impact of centralized procurement and channel inventory on the device and pharmaceutical businesses, commercialization of innovative products and consumer healthcare, and whether the share price can recover above short-term moving-average resistance with support from higher turnover.

Data Sources

• List of ChiNext-listed companies on the Shenzhen Stock Exchange
• Lepu Medical (300003)_Company Announcements_Lepu Medical: 2025 Annual Report_Sina Finance_Sina.com
• https://stockn.xueqiu.com/SZ300003/20240419311638.pdf
• Company Announcements_Lepu Medical: 2024 Annual Report_Sina Finance_Sina.com
• National Healthcare Security Administration: Results of Real-World Study on Centralized Procurement of Cardiac Stents Released
• APT Medical 2024 Annual Report
• Biosensors Medical 2024 Annual Report
• Lepu Medical (300003)_Company Announcements_Lepu Medical: 2026 Interim Report Summary_Sina Finance_Sina.com
• Lepu Medical (300003)_Company Announcements_Lepu Medical: 2026 Interim Report Summary_Sina Finance_Sina.com
• Lepu Medical: First-half attributable net profit of RMB 499 million, down 27.7% year on year_Sina Finance_Sina.com
• Lepu Medical (300003)_Company Announcements_Lepu Medical: 2026 Interim Report Investor Relations Activity Record_Sina Finance_Sina.com
• Company Announcements_Lepu Medical: 2025 Financial Final Accounts Report_Sina Finance_Sina.com
• Lepu (Beijing) Medical Devices Co., Ltd. 2024 Financial Final Accounts Report
• Company Announcements_Lepu Medical: 2025 Annual Report_Sina Finance_Sina.com
• Lepu Medical (300003) Earnings Forecast_F10_Tonghuashun Financial Services
• Earnings Forecast
• Lepu Medical (300003) Earnings Forecast_F10_Tonghuashun Financial Services
• Lepu Medical (300003): Diversified positioning supports expectations for 2026_Sina Finance_Sina.com
• Institutional Ratings|Guolian Minsheng Securities rates Lepu Medical “Outperform” without a target price
• Lepu Medical (300003)_Stock Quote, Market Overview_CFi.CN
• Stock Code: 300003  Stock Name: Lepu Medical  Announcement No.: 2026-003
• Lepu Medical (300003)_Company Announcements_Lepu Medical: Resolution Announcement of the Second Extraordinary General Meeting of 2026_Sina Finance_Sina.com
• Stock Code: 300003  Stock Name: Lepu Medical  Announcement No.: 2026-062
• Lepu Medical (300003): Company Applies to Bank for Acquisition Loan_CFi.CN
• Lepu Medical (300003)_Company Announcements_Lepu Medical: Announcement on Completion of Certain Fund-Raising Projects, Termination of Certain Projects, and Permanent Supplement of Working Capital with Related Surplus Proceeds_Sina Finance_Sina.com
• Lepu Medical: Announcement on Returning Idle Proceeds Used to Temporarily Supplement Working Capital_East Money
• Stock Code: 300003 Stock Name: Lepu Medical Announcement No.: 2015-032
• Lepu Medical: Indicative Announcement on No-Objection Letter from Shenzhen Stock Exchange for Proposed Private Placement of Sci-Tech Innovation Exchangeable Corporate Bonds by Shareholder Holding More Than 5%_Stockstar
• Lepu Medical_Individual Stock Calendar_East Money Data Channel
• Lepu Medical (300003) Share Pledge|Shareholders_Lixinger
• Lepu Medical (300003) Corporate Events_F10_Tonghuashun Financial Services
• Stock Code: 300003 Stock Name: Lepu Medical
• Lepu Medical (300003) Latest Developments_F10_Tonghuashun Financial Services
• Lepu Medical (300003) Shareholder Research_F10_Tonghuashun Financial Services
• Lepu Medical Tech Beijing (300003) Historical Prices_Investing.com
• Lepu Medical (300003) Historical Data: Historical Quotes, Prices, and Charts_Investing.com
• Lepu Medical (300003) Technical Analysis, Forecasts, and Trading Recommendations_Investing.com
• Lepu Medical (300003) Stock News_Sina Finance_Sina.com

This report was automatically searched, compiled, and generated by AI based on publicly available information. Information is current as of the September 11, 2026 close; some market data may differ slightly due to differences in sources, update times, and calculation methodologies. The principal reference figures in the meeting notes are used below. Information may be subject to timeliness differences. Specific data should be based on the company’s official announcements and authoritative data terminals. This report is for information and research reference only and does not constitute investment advice. Investors should make independent judgments and bear their own investment risks.