Cofoe Medical Technology Co., Ltd. (Cofoe Medical) (301087)

Individual Stock Analysis Report　|　Industry: Home Medical Devices and Home Health Management　|　Report Date: September 13, 2026　|　Data as of the September 11, 2026 close; shareholder and institutional holding data as of June 30, 2026, with a quarterly lag; certain market indicators are subject to uncertainty due to differences in source definitions or data dates.

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

1. Executive Summary

Cofoe Medical generated operating revenue of RMB 2.072 billion in the first half of 2026, up 38.51% year on year; net profit attributable to the parent was RMB 202 million, up 20.84%, while non-recurring-adjusted net profit attributable to the parent was RMB 173 million, up 26.73%. Revenue growth accelerated significantly, but profit growth lagged revenue growth, mainly due to higher selling expenses, channel placement and overseas expansion investments. Selling expenses were approximately RMB 763 million during the period, up 58.8% year on year, while net cash flow from operating activities was RMB 262 million, down approximately 25.3%. The quality of profit growth and cash flow therefore remains subject to simultaneous monitoring.

The company’s growth drivers are shifting from traditional multi-category retail toward higher-margin products, respiratory support and overseas operations. Gross margin was 55.89% in the first half of 2026, approximately 3.4 percentage points higher than in the same period last year; respiratory-support revenue was approximately RMB 267 million, up 166.90% year on year, and sales of self-developed ventilators exceeded RMB 100 million in the second quarter of 2026. Overseas revenue was approximately RMB 210 million, up 116.97% year on year. In addition, the company obtained brand authorization from Philips for seven health-monitoring categories in Greater China, acquired a stake in Rongxin Medical and advanced overseas collaboration involving home ventilators. However, the relevant authorization and certification information does not equate to realized sales revenue.

The company’s core business remains primarily domestic and online. In 2024, domestic revenue accounted for 98.02% of total revenue, while online product sales accounted for 66.73%; rehabilitation aids and medical care were the main revenue and profit pillars. In 2024, the gross margin of medical and healthcare products rose to 52.74%, with rehabilitation aids reaching 61.15%. However, health monitoring and respiratory support had previously experienced revenue volatility, while investment in new Jian’er Hearing stores and interest-based e-commerce also pressured the expense ratio.

As of September 11, 2026, the company’s share price closed at RMB 52.77, with a trailing P/E ratio of approximately 30x, approaching the technical resistance zone of RMB 53.5–55.2. The moving-average structure remained strong, but RSI6 was approximately 87 and RSI14 approximately 68, indicating overheated short-term momentum. Core funds also remained in net outflow over the previous five trading days. The current valuation and share-price performance already incorporate certain expectations for earnings growth. Future performance will depend on ventilator volume growth, overseas expansion, conversion of brand authorization into sales and improved selling-expense efficiency.

2. Company Overview

2.1 Basic Information

2.2 Main Businesses and Product Portfolio

• Health monitoring: blood-pressure monitors, blood-glucose meters, blood-glucose and uric-acid testing products, thermometers, fetal heart-rate monitors and others
• Rehabilitation aids: wheelchairs, care beds, posture-correction belts, hearing aids and hearing rehabilitation services, among others
• Respiratory support: oxygen concentrators, ventilators, nebulizers, sleep-respiratory products and others
• Medical care: dressings, adhesive dressings, cotton balls/cotton swabs/cotton pads, oral care, ostomy care, wound care, underpads and others
• Traditional Chinese medicine therapy and others: physiotherapy devices, moxibustion, cupping and other traditional Chinese medicine therapy products and related healthcare products
• 2024 revenue composition: rehabilitation aids RMB 1.104 billion, accounting for 37.00%; medical care products RMB 801 million, accounting for 26.86%; health-monitoring products RMB 489 million, accounting for 16.39%; respiratory-support products RMB 267 million, accounting for 8.95%; traditional Chinese medicine therapy and others RMB 181 million, accounting for 6.06%; other businesses RMB 141 million, accounting for 4.74%

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

Cofoe Medical occupies an intermediate position in the home medical-device industry chain, combining midstream manufacturing with downstream branded retail. It operates under a model combining “in-house R&D and production + outsourced production of certain products + externally sourced own-brand products + agency-brand supplements,” and reaches consumers through e-commerce, chain pharmacies, medical-device retail stores, warehouse clubs and hearing-service channels.

• Major procurement categories include electronic components, structural parts, plastic parts, packaging materials, sewn and textile components, certain medical consumables and functional materials.
• Procurement models include production-related raw-material and component procurement, finished-product procurement for Cofoe’s own brands, and procurement of agency-brand products.
• In 2024, direct materials amounted to RMB 615 million, accounting for 45.82% of the cost of self-manufactured products; direct labor accounted for 5.58%, manufacturing expenses for 4.14% and outsourced processing fees for 0.87%. The cost of externally sourced own-brand products was RMB 257 million, accounting for 19.13% of operating costs; the cost of externally sourced agency-brand products was RMB 237 million, accounting for 17.65%.
• Total procurement from the top five suppliers in 2024 was RMB 328 million, accounting for 26.54% of annual procurement; the largest supplier accounted for 10.57%. Overall supplier concentration is not particularly high, and the company is not extremely dependent on any single supplier.
• In upstream areas such as electronic components and structural parts, the company is a relatively large-scale customer among purchasers, but does not have absolute bargaining power over all suppliers. Certain key components must undergo R&D validation, registration and quality certification, meaning that supplier switching is not entirely unrestricted.
• The company generally lacks absolute pricing power over upstream costs for electronic components, structural parts, plastic parts and textile components. These costs may still be affected by raw-material prices, labor costs and supply-chain fluctuations. The improvement in gross margin in 2024 was primarily attributable to product mix, the proportion of self-manufacturing, channel efficiency and the higher contribution of rehabilitation aids, rather than simply lower raw-material prices.
• Major downstream customers include e-commerce platforms and online consumers, large chain pharmacies, medical-device retail stores, warehouse clubs, hearing-aid and hearing-rehabilitation service customers, overseas distributors and end customers.
• The company cooperates with dozens of top-100 chain pharmacy companies, with products and services covering more than 200,000 pharmacies nationwide; online channels are the core sales channel, with online product sales accounting for 66.73% of operating revenue in 2024.
• Total sales to the top five customers in 2024 were RMB 1.005 billion, accounting for 33.70% of annual sales; sales to the largest customer were RMB 564 million, accounting for 18.92%. This information comes from the 2024 annual report, which did not disclose the specific names of the top five customers. It is therefore impossible to determine whether the largest customer specifically corresponds to an e-commerce platform, chain pharmacy or another channel. The figure cannot simply be equated with end-consumer concentration; the company’s subsequent annual reports should be used as the reference.
• Downstream demand has clear consumer-medical and retail characteristics. E-commerce platforms and consumers are price-sensitive, while platform traffic, platform fees, advertising expenditure, brand ratings, promotional intensity and after-sales service jointly affect sales performance.
• The company is not a typical consumer-products company with a strong brand. Downstream bargaining relationships are more characterized by traffic, pricing and fee pressure from e-commerce platforms and retail channels than by a single tendering relationship under the traditional hospital-equipment sales model.
• Selling expenses increased 31.40% year on year in 2024, mainly due to the addition of Jian’er Hearing stores, increased investment in interest-based e-commerce and increased brand-building investment. Many new and recently opened Jian’er Hearing stores remain in the ramp-up stage and may pressure margins in the short term.
• As of December 31, 2024, accounts receivable were RMB 374 million, accounting for 5.82% of total assets and approximately 12.54% of 2024 operating revenue, compared with RMB 474 million at the end of 2023. Inventories were RMB 660 million, accounting for 10.27% of total assets and approximately 22.12% of annual revenue; prepayments were RMB 139 million and accounts payable RMB 375 million, equivalent to approximately 12.58% of annual revenue. Net cash flow from operating activities in 2024 was RMB 663 million, significantly higher than net profit attributable to the parent of RMB 312 million, indicating good sales collection and cash-conversion capability. However, inventory tied up a meaningful amount of capital, and the company recorded an inventory impairment provision during the year, indicating that certain products faced changes in demand, declining selling prices or inventory-turnover pressure. The low ratio of accounts receivable to revenue primarily benefited from direct online sales and retail channels; inventory, platform fees and marketing expenses are the main working-capital and profitability constraints.
• On the supply side, procurement from the top five suppliers in 2024 accounted for 26.54% of annual procurement, while the largest supplier accounted for 10.57%. Overall, the company was not extremely dependent on any single supplier. On the customer side, sales to the top five customers accounted for 33.70% of annual sales, while the largest customer accounted for 18.92%. The data come from the 2024 annual report, which did not disclose customer names, making it impossible to further cross-check the specific channels involved; the figures cannot simply be equated with end-consumer concentration.

The company occupies a position combining midstream manufacturing and downstream branded retail within the home medical-device industry chain. It is neither an upstream resource company nor a single-equipment manufacturer. Current profit improvement mainly depends on a higher contribution from higher-margin products such as rehabilitation aids and medical care, a higher proportion of self-manufacturing, improved brand and channel efficiency, and expansion of service businesses such as Jian’er Hearing. Further margin improvement will depend on sustained growth of higher-margin categories, recovery of health monitoring and respiratory support, cost control and improved channel efficiency, rather than strong pricing power over upstream raw materials.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The latest disclosed financial report is the 2026 Interim Report, covering the period ended June 30, 2026, and disclosed on August 29, 2026. Non-recurring-adjusted net profit attributable to the parent was RMB 173 million in the first half of 2026, up 26.73% year on year; net cash flow from operating activities was RMB 262 million, down approximately 25.3% year on year. Total assets at the end of the reporting period were RMB 7.457 billion, the asset-liability ratio was 25.41%, and cash and cash equivalents plus trading financial assets totaled approximately RMB 3.062 billion. In 2025, non-recurring-adjusted net profit attributable to the parent was RMB 298 million, up 8.33% year on year, while net cash flow from operating activities was RMB 696 million, up 4.87% year on year.

The company’s revenue growth accelerated significantly in 2026, driven mainly by volume growth of core products, product-mix optimization and overseas expansion. Gross margin was 55.89% in the first half of 2026, approximately 3.4 percentage points higher than in the same period last year. Revenue from rehabilitation aids, medical care, health monitoring and respiratory support was RMB 742 million, RMB 511 million, RMB 303 million and RMB 267 million, respectively. Respiratory support grew 166.90% year on year, while traditional Chinese medicine therapy and other revenue grew 114.54%. Sales of self-developed ventilators exceeded RMB 100 million in the second quarter of 2026, and overseas revenue was approximately RMB 210 million in the first half, up 116.97% year on year. However, revenue grew faster than profit, mainly because selling expenses, channel placement and overseas expansion investment increased. Selling expenses were approximately RMB 763 million in the first half, up 58.8% year on year, while operating cash flow declined year on year. The returns on marketing investment, accounts receivable and cash-flow quality warrant further attention.

3.2 Earnings Forecast

As of September 10, 2026, the six-month institutional forecast summary compiled by 10jqka showed that 12 institutions had issued 2026 earnings forecasts and 11 had issued 2028 earnings forecasts. These consensus forecasts were compiled by 10jqka from institutional research reports and are not data disclosed by the listed company or an exchange. Different institutions may use different report dates, assumptions and share-capital definitions. Representative forecasts include the following: Huayuan Securities expects net profit attributable to the parent of RMB 464 million, RMB 583 million and RMB 712 million for 2026–2028, respectively, with EPS of RMB 1.97, RMB 2.47 and RMB 3.02; Pacific Securities expects net profit attributable to the parent of approximately RMB 468 million, RMB 586 million and RMB 708 million, with EPS of RMB 1.98, RMB 2.48 and RMB 3.00; Caixin Securities expects net profit attributable to the parent of RMB 458 million, RMB 597 million and RMB 711 million, with EPS of RMB 1.94, RMB 2.53 and RMB 3.01; China Renaissance Securities expects net profit attributable to the parent of RMB 470 million, RMB 590 million and RMB 720 million; and Huatai Securities expects net profit attributable to the parent of RMB 463 million, RMB 578 million and RMB 715 million.

3.3 Valuation and Institutional Ratings

The closing price was approximately RMB 51.70 as of September 10, 2026, with a total market capitalization of approximately RMB 12.2 billion, a trailing P/E ratio of approximately 30x, a P/B ratio of approximately 2.2x and trailing EPS of approximately RMB 1.95. Based on the consensus EPS from 10jqka, forecast P/E ratios for 2026–2028 are approximately 24.7x, 20.0x and 16.2x, respectively. Based on certain broker forecasts, the corresponding P/E ratios are approximately 26.2x, 20.9x and 17.1x for Huayuan Securities; approximately 26.1x, 20.8x and 17.2x for Pacific Securities; and approximately 26.4x, 21.1x and 17.1x based on a rough calculation using Huatai Securities’ forecasts. The current static P/E of approximately 30x is above the 2026 forecast P/E of approximately 25–26x. If institutional earnings forecasts are achieved over the next two to three years, the valuation could decline to approximately 16–20x as profits grow. Disclosed target prices include approximately RMB 65 from China Renaissance Securities, RMB 68.74 from Huatai Securities and RMB 53.84 from Haitong International’s earlier report. Based on the RMB 51.70 closing price, the potential upside to the China Renaissance Securities and Huatai Securities target prices is approximately 25.7% and 33.0%, respectively, while the Investing.com average target price of RMB 65.28 implies potential upside of approximately 26.3%. Overall, institutional ratings are mainly Buy, Outperform or Accumulate. However, the current valuation is not low, and its reasonableness depends on continued volume growth of self-developed ventilators, sustained high growth in overseas operations, implementation of the Philips cooperation and gradual improvement in the selling-expense ratio. Earnings forecasts and target prices are forecasts from broker research reports or third-party platforms and do not represent commitments by the listed company. Market and valuation data may differ among platforms; this report primarily uses the September 10, 2026 closing price and public data available around that date.

4. Recent News and Announcements

4.1 First-Half 2026 Results Continued to Grow

The company disclosed its 2026 Interim Report on August 29, 2026. In the first half of 2026, operating revenue was RMB 2.072 billion, up 38.51% year on year; net profit attributable to shareholders of the listed company was RMB 202 million, up 20.84%; and non-recurring-adjusted net profit attributable to the parent was RMB 173 million, up 26.73%. Respiratory-support revenue was approximately RMB 267 million, up 166.90% year on year, while overseas revenue was approximately RMB 210 million, up 117%. As of September 12, 2026, no new third-quarter 2026 earnings forecast or earnings flash report had been identified. The latest earnings information therefore remains the interim report.

4.2 A-Share Buyback Continued, with Cumulative Repurchases of Approximately RMB 130 Million

The company’s second A-share buyback plan for 2026 was approved by the board on June 26, 2026 and by shareholders on July 20, 2026. It plans to use no less than RMB 100 million and no more than RMB 200 million, with a maximum repurchase price of RMB 69.66 per share. All repurchased shares are intended to be cancelled and the registered capital reduced. As of August 31, 2026, the company had cumulatively repurchased 1.9429 million A shares, representing 0.93% of total A-share capital, for a total transaction value of approximately RMB 101.94 million. As of September 1, 2026, cumulative repurchases had reached 2.5169 million shares, representing 1.20% of total A-share capital, for a total transaction value of approximately RMB 130.37 million, excluding transaction fees. The company stated that it would continue implementing the buyback plan depending on market conditions.

4.3 Proposed Change of Purpose and Cancellation of 397,000 Historically Repurchased Shares

On August 29, 2026, the company disclosed that it proposed changing the purpose of 397,000 A shares repurchased under the 2022 buyback plan but not used for the employee stock ownership plan or equity incentives to cancellation and reduction of registered capital. If the cancellation is completed, total share capital will decrease from 235,897,000 shares to 235,500,000 shares, with registered capital reduced accordingly. As of September 12, 2026, the matter still required shareholder approval and the completion of relevant procedures with the Shenzhen Stock Exchange and China Securities Depository and Clearing Corporation Limited. No announcement confirming completion of the cancellation had been identified.

4.4 Interim Dividend Proposal of RMB 6 per 10 Shares

On August 28, 2026, the company’s board approved the 2026 interim profit-distribution plan. Based on the total share capital at the time of implementation, after deducting shares held in the special repurchase account, the company proposes to pay a cash dividend of RMB 6 per 10 shares, with no bonus shares and no capitalization of capital reserves. Based on total share capital of 235,897,000 shares as of August 28, 2026 and the deduction of 8,767,681 shares held in the special repurchase account, the estimated number of shares participating in the dividend is 227,129,319, implying an estimated total cash dividend of approximately RMB 136.28 million. The proposal remains subject to shareholder approval, and the final amount will be adjusted according to the actual number of shares eligible for distribution on the record date.

4.5 Third Extraordinary General Meeting of Shareholders for 2026 Scheduled for September 18

The company plans to convene its third extraordinary general meeting of shareholders in 2026 on September 18, 2026, with a record date of September 11, 2026. The meeting is expected to consider the 2026 interim profit-distribution plan; the change of purpose, cancellation and registered-capital reduction involving 397,000 repurchased A shares; amendments to the articles of association; and the proposed appointment of Ernst & Young as the overseas auditor for 2026. The cancellation and registered-capital reduction involving repurchased shares constitutes a special-resolution matter. As of September 12, 2026, the meeting had not yet been held and the relevant proposals had not been finalized.

4.6 Controlling Shareholder and Concert Parties Continued to Increase H-Share Holdings

On July 17, 2026, controlling shareholder Changsha Machinery-Numbered Medical Investment Co., Ltd. increased its H-share holdings by 1,324,400 shares through centralized bidding. After the purchase, the combined holding of the controlling shareholder and its concert parties rose from 47.82% to 48.38%. From July 20 to July 24, 2026, the controlling shareholder continued to acquire approximately 1.7167 million H shares, increasing the combined holding ratio from 48.38% to 49.10% and triggering a 1-percentage-point threshold. The purchases did not change the company’s controlling shareholder or actual controller.

4.7 Obtained Philips Brand Authorization for Seven Health-Monitoring Categories in Greater China

At an investor-relations event on September 2, 2026, the company stated that it had obtained Philips brand authorization in Greater China for seven health-monitoring categories: blood-glucose meters, blood-pressure monitors, continuous glucose monitors, thermometers, pulse oximeters, pulmonary-function instruments and scales. The company stated that the first batch of products had completed registration and certification and production-line construction, and that preparations for launch were under way. This information came from investor-relations activity records and does not equate to realized sales revenue or a formal product-launch announcement.

4.8 Investment in Rongxin Medical and FDA Certification for Ventilator Products

In an investor-relations activity record dated August 28, 2026, the company stated that it had acquired a strategic 30.74% stake in Shenzhen Rongxin Medical at the end of 2025. Rongxin Medical’s home ventilator obtained U.S. FDA 510(k) clearance in July 2026. The company also mentioned co-branded ventilator products and overseas collaboration between the two parties. As of September 12, 2026, no new major equity acquisition, asset acquisition, merger or restructuring announcement disclosed by the company from August through early September 2026 had been identified.

4.9 Continued Progress in AI R&D and “Cofoe Large Model” Development

In an announcement on the progress of its “dual improvement in quality and returns” initiative, the company disclosed that during the reporting period it advanced product R&D, intelligent manufacturing and channel operations across five major areas: respiratory support, health monitoring, rehabilitation aids, medical care and traditional Chinese medicine therapy. The company has established an artificial-intelligence research institute, advanced development of the “Cofoe Large Model” and completed engineering validation of an edge-side intelligent algorithm, with ventilators as the first application scenario.

4.10 No Major Regulatory Penalties or Inquiries Recently Identified

As of September 12, 2026, no announcement had been identified indicating that the company had received an administrative penalty from the China Securities Regulatory Commission, disciplinary action from the Shenzhen Stock Exchange, a regulatory warning, inquiry letter or letter of concern from August through early September 2026. This conclusion is based on searches of the company’s announcement list, the CNINFO website and public media announcement databases. It is subject to delays in public disclosure and cannot exclude subsequent announcements or information from non-announcement channels.

5. Share-Price Performance and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

Cofoe Medical’s share price rebounded rapidly after falling to RMB 47.05 on September 2 and closed at RMB 52.77 on September 11, again approaching the July interim high and the upper Bollinger Band. The moving-average structure indicates a strong short-term trend, but RSI6 of approximately 87 and RSI14 of approximately 68 indicate overheated momentum and a higher risk of consolidation after a rally. In terms of fund flows, core funds turned to net inflow from September 3 to September 4, but total fund flow over the five trading days through September 7 remained negative, and the fund backdrop has not yet shown stable one-way improvement. The key technical points to monitor are whether the RMB 53.5–55.2 resistance zone can be broken effectively with increased turnover, and whether the RMB 50.7–51.5 and RMB 49.5–50.1 support zones attract buying.

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

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

① Key Technical Levels

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

• Range-bound consolidation (relatively higher subjective heuristic weighting, approximately 50%–60%; not a statistical probability): price range of approximately RMB 50.5–54.0. The trigger would be resistance near RMB 53.5 while RMB 50.7–51.5 attracts support and turnover remains approximately RMB 100 million–RMB 200 million. This scenario represents technical digestion after a rapid rise, with the share price potentially oscillating near the upper Bollinger Band
• Stronger rebound (medium subjective heuristic weighting, approximately 30%; not a statistical probability): price range of approximately RMB 53.5–56.0. The trigger would be a volume-backed move above RMB 53.5 followed by a break above RMB 55.2, together with daily turnover clearly exceeding recent normal levels. An intraday break followed by a close back below RMB 53.5 would not constitute confirmation of an effective breakout
• Weak pullback (low-to-medium subjective heuristic weighting, approximately 20%; not a statistical probability): price range of approximately RMB 47.0–50.5. The trigger would be a break below the first support zone of RMB 50.7–51.5, accompanied by higher turnover, continued net outflows of core funds or simultaneous weakness in the ChiNext or medical-device sectors. If the strong support zone of RMB 49.5–50.1 is also lost, the probability of a retracement toward RMB 46.4–47.2 would rise

③ Fund-Flow and Liquidity Background

Recent turnover rates were mainly approximately 0.9%–2.3%, with turnover value mainly between RMB 90 million and RMB 210 million. Turnover value was approximately RMB 212 million on September 4 and an estimated RMB 190 million on September 11, both above that of certain low-volume trading days. Data as of June 30, 2026 showed that the top 10 shareholders held approximately 67.46% of total share capital, while 253 core institutions held approximately 62.86% of outstanding A shares. However, the data have a quarterly lag, and the share price had already experienced substantial volatility during September, so the current ownership structure may have changed. In practice, high shareholder concentration does not necessarily mean ample real-time liquidity. Institutional rebalancing or changes in the holdings of the controlling shareholder and related parties may affect short-term supply and demand. This report does not provide more granular order-book depth or real-time order data and therefore cannot further assess the specific level of slippage.

If the share price decisively breaks above RMB 53.5, with daily turnover expanding consecutively to above RMB 220 million, the turnover rate reaching approximately 2.2% or higher, and the closing price holding above RMB 53.5, these could serve as observable signals of increased short-term fund participation. If volume rises but the closing price falls back below RMB 53.5, the risk of a failed rally should be monitored.

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

• Observation framework, not a trading instruction: monitor whether the RMB 53.5–55.2 resistance zone can be decisively broken with increased turnover.
• Observation framework, not a trading instruction: monitor whether the RMB 50.7–51.5 first-support zone attracts lower-volume buying and whether the RMB 49.5–50.1 strong-support zone is breached.
• Observation framework, not a trading instruction: if strong support is broken, observe whether the price retraces toward the RMB 46.4–47.2 range.
• Observation framework, not a trading instruction: focus on whether turnover can exceed RMB 220 million consecutively and combine with a closing-price break above RMB 53.5; also monitor the overheated short-term condition indicated by RSI6 of approximately 87.

The above scenario analysis is based on the September 11, 2026 closing data and calculations using historical prices and technical indicators. Short-term share prices may also be affected by news, fund flows, the broader market and other factors. Technical indicators are inherently lagging and limited, and the analysis does not guarantee future actual performance or constitute a buy or sell recommendation. Investors should independently assess the latest market information and bear investment risks themselves.

6. Industry Landscape and Competitor Analysis

6.1 Industry Status

Cofoe Medical operates in the broad medical-device industry, with core segments including home medical devices, health monitoring, rehabilitation aids, respiratory support and medical care. Industry demand is supported by population aging, chronic-disease management, home rehabilitation and household health-management needs. Product segmentation is high, and different categories vary in technical barriers, registration requirements and consumption scenarios. Home medical devices are usually purchased directly by consumers or household members, making brand trust, platform ratings, price, ease of use and after-sales service important determinants of sales.

6.2 Competitive Landscape

• The industry features a coexistence of “comprehensive leaders + segment leaders + numerous white-label companies,” and no single company has yet achieved comprehensive dominance across all subcategories.
• Yuwell Medical is stronger in comprehensive home medical-device scale, brand and channels, while Cofoe Medical is differentiated in e-commerce operations, rehabilitation aids, medical care and multi-category retail.
• Andon Health, Sinocare, BMC Medical and Contec Medical have established competition in segments including home electronic healthcare products, blood-glucose monitoring, home respiratory care and health-monitoring equipment.
• Competition in online channels is intense. Online revenue accounted for 66.73% of Cofoe Medical’s revenue in 2024, making online channels a core advantage, but also bringing platform service fees, advertising expenses, traffic-placement costs and pricing pressure.
• The company’s selling expenses increased 31.40% year on year in 2024, mainly due to new Jian’er Hearing stores, investment in interest-based e-commerce and brand-building investment.
• In 2024, the company sold approximately 207 million medical and healthcare products, measured in a mixed number of units/sheets/boxes/pieces/items; production was approximately 209 million units/sheets/boxes/pieces/items, and inventory was approximately 51.54 million units/sheets/boxes/pieces/items. Because the units are mixed, the figures cannot be directly used to compare capacity across different products. The company did not disclose designed capacity, capacity utilization or outstanding orders by product at each production base.
• As of December 31, 2025, the company’s website disclosed four production bases, three research institutes, 99 subsidiaries and 640 branches. This definition may differ in statistical scope from the production-base and branch data disclosed in the 2024 annual report and therefore cannot be directly compared without adjustment.

6.3 Major Competitors

Cofoe Medical overlaps with the above companies in certain businesses but does not compete on a completely homogeneous basis. Compared with Yuwell Medical’s advantages in overall scale, brand and channels; Andon Health’s advantages in overseas home electronics and smart healthcare; Sinocare’s specialization in blood-glucose monitoring; BMC Medical’s specialization in home respiratory care; and Contec Medical’s hospital-channel equipment and monitoring products, Cofoe Medical’s differentiation mainly lies in rehabilitation aids, medical care, multi-category household healthcare products, e-commerce retail operations, chain-pharmacy channels and hearing services. Its competitiveness and profit elasticity depend on the expansion of higher-margin categories, increased self-manufacturing, improved online-channel efficiency and scaling of service businesses. At the same time, it faces online traffic and price competition, inventory usage, volatility in health monitoring and respiratory support, and expense pressure during the expansion of hearing stores.

7. Risk Factors

• The sustainability of high growth in respiratory support is uncertain. Respiratory-support revenue increased 166.90% year on year in the first half of 2026, and quarterly sales of self-developed ventilators exceeded RMB 100 million. However, whether the high growth base and new-product volume growth can continue requires validation in subsequent financial reports. If sales fall short of expectations, overall revenue growth and product-mix improvement could be affected.
• Selling expenses are growing significantly faster than revenue. Selling expenses were approximately RMB 763 million in the first half of 2026, up 58.8% year on year. New Jian’er Hearing stores, interest-based e-commerce placements and brand-building investment may continue to suppress net margin. If returns from traffic placement, store ramp-up or overseas expansion are insufficient, profit growth may continue to lag revenue growth.
• Operating cash flow has weakened. Net cash flow from operating activities was RMB 262 million in the first half of 2026, down approximately 25.3% year on year. The company must also fund channel placement, overseas expansion and inventory turnover, so it is necessary to monitor whether revenue growth can translate into stable cash collections.
• The company has relatively high dependence on online sales, with online product sales accounting for 66.73% of operating revenue in 2024. E-commerce-platform traffic, platform fees, advertising expenditure, promotional intensity and price competition may affect sales and gross margin. If customer-acquisition costs on platforms rise, the profit advantages of higher-margin businesses such as rehabilitation aids and medical care may be partly offset.
• Inventory and changes in product demand may create impairment pressure. At the end of 2024, inventories were RMB 660 million, accounting for 10.27% of total assets and approximately 22.12% of annual revenue, and the company recorded an inventory impairment provision during the year. If demand for health monitoring, respiratory support or other products changes, selling prices decline or turnover slows, asset quality and profitability could be further affected.
• Overseas operations remain in the expansion stage. Although overseas revenue was approximately RMB 210 million in the first half of 2026, up 116.97% year on year, overseas revenue accounted for only 1.98% of total revenue in 2024. Overseas market development, product certification, channel development and localization investment may entail high expenses and execution requirements. Revenue growth cannot yet be directly equated with mature overseas profitability.
• The Philips brand authorization and Rongxin Medical cooperation have not yet been fully converted into operating results. The company has obtained authorization for seven Philips health-monitoring categories in Greater China, and Rongxin Medical’s home ventilator has obtained U.S. FDA 510(k) clearance. However, the first batch of products remains in stages such as launch preparation, and actual sales, profit contribution and synergies remain uncertain.
• The company’s customers and channels have some concentration and bargaining pressure. Sales to the top five customers accounted for 33.70% of annual sales in 2024, while the largest customer accounted for 18.92%; the annual report did not disclose specific customer names. If major platforms or channels adjust traffic, fees or procurement policies, the company’s sales and profitability could be affected temporarily.
• The current share price and valuation place high requirements on earnings delivery. As of September 11, 2026, the share price was RMB 52.77 and the trailing P/E ratio approximately 30x. Technical indicators showed RSI6 of approximately 87, and the share price was close to the RMB 53.5–55.2 resistance zone. If future earnings, cash flow or fund flows fall short of expectations, valuation digestion and share-price volatility could occur.

8. Conclusion and Outlook

The company is currently in a stage of accelerating revenue growth and upgrading its product mix. Rehabilitation aids and medical care continue to form a relatively stable business foundation, while respiratory support, self-developed ventilators, overseas markets and Philips brand authorization provide new growth opportunities. Revenue and net profit attributable to the parent increased 13.56% and 19.20%, respectively, in 2025, and growth accelerated further in the first half of 2026. If core products continue to gain volume and overseas operations maintain high growth, revenue and profit remain capable of expansion.

The quality of growth still requires attention to the matching of investment and returns. Selling-expense growth was significantly higher than revenue growth in the first half of 2026, while operating cash flow declined year on year, indicating that channel placement, store expansion and overseas-business development have not yet been fully converted into profit and cash returns. At the same time, the company has a high proportion of online sales and faces pressure from platform traffic, advertising expenditure, price competition and after-sales service. Institutions expect net profit attributable to the parent to grow approximately 24% annually from 2026 to 2028, but these forecasts come from brokers or third-party aggregators and do not constitute company earnings guidance.

From a valuation perspective, based on the September 11, 2026 closing price, the company’s market capitalization was approximately RMB 12.45 billion and its trailing P/E ratio approximately 30x, above the approximately 25–26x 2026 P/E implied by institutional forecasts. Technically, the share price is close to the previous high and the upper Bollinger Band. The market should continue to monitor the price-volume performance in the RMB 53.5–55.2 resistance zone and the buying support in the RMB 50.7–51.5 and RMB 49.5–50.1 support zones. These factors will jointly reflect the market’s assessment of earnings delivery and the company’s ability to digest its valuation.

Data Sources

• Cofoe Medical (301087)_Company Announcements_Cofoe Medical: 2026 Interim Report_Sina Finance_Sina.com
• https://static.cninfo.com.cn/finalpage/2026-08-29/1225525772.PDF
• Cofoe Medical: First-half revenue and net profit both increased, with overseas business growing rapidly
• Stock code: 301087  Stock abbreviation: Cofoe Medical  Announcement No.: 2026-065
• Company Announcements_Cofoe Medical: Announcement on the Proportion of A-Share Buybacks Reaching 1% and Progress of the Buyback_Sina Finance_Sina.com
• Stock code: 301087  Stock abbreviation: Cofoe Medical  Announcement No.: 2026-085
• https://static.cninfo.com.cn/finalpage/2026-08-29/1225532727.PDF
• https://static.cninfo.com.cn/finalpage/2026-08-29/1225525771.PDF
• Cofoe Medical: Summary of Announcement on the Change in Rights and Interests of the Controlling Shareholder and Its Concert Parties Reaching a 1% Threshold_Announcement Summary_Data Analysis_Stocks_Stockstar
• Cofoe Medical: Combined Holdings of Controlling Shareholder and Concert Parties Rise to 49.10%_7x24-Hour Financial News_Sina.com
• Cofoe Medical (301087)_Company Announcements_Cofoe Medical: September 2, 2026 Investor Relations Activity Record_Sina Finance_Sina.com
• Cofoe Medical (301087)_Company Announcements_Cofoe Medical: August 28, 2026 Investor Relations Activity Record_Sina Finance_Sina.com
• Cofoe Medical (301087) Company Announcements_Sina Finance_Sina.com
• List of ChiNext Companies Listed on the Shenzhen Stock Exchange
• Cofoe Medical (301087) Stock Historical Data: Historical Quotes, Prices and Charts_Investing.com
• Cofoe Medical (301087) - Historical Trading Data | DabanKe
• CITIC Bank International
• Cofoe Medical (301087)_Latest Price_Quotes_Chart_East Money
• Cofoe Medical (301087) Technical Analysis
• Cofoe Medical (301087) Stock Analysis_Niu Cha Stock Diagnosis_10jqka Finance
• Cofoe Medical (301087)_Company Announcements_Cofoe Medical: 2026 Interim Report Summary_Sina Finance_Sina.com

This report was automatically retrieved, compiled and generated by AI based on publicly available information. Information is current as of the September 11, 2026 close; shareholder and institutional holding data are as of June 30, 2026, with a quarterly lag; certain market indicators are subject to uncertainty due to differences in source definitions or data dates. Information may differ in timeliness, and specific data should be based on the company’s formal announcements and authoritative data terminals. This report is for information compilation and research reference only, does not constitute investment advice, and investors should make independent judgments and bear investment risks themselves.