Breaking Down Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. Financial Health: Key Insights for Investors

Curious whether Jiangsu Yuyue Medical (002223.SZ) is a resilient growth story or a value trap? In the first three quarters of 2025 the company delivered operating revenue of 6.545 billion yuan (up 8.58% YoY) and a trailing twelve months revenue of 8.08 billion yuan (up 10.17% YoY), while Q3 2025 revenue hit 1.89 billion yuan (+9.63% YoY) driven largely by overseas markets in Europe, North and South America; yet net profit attributable to shareholders fell 4.28% YoY in the first nine months and basic EPS slipped to 1.4687 yuan, even as Q3 net profit jumped to 578 million yuan (+25.43% vs Q2), pointing to mixed momentum between top-line expansion and margin pressure from rising SG&A (2.125 billion yuan YTD) and a lower net margin of ~22.4% versus 23.3% a year earlier; the balance sheet offers comfort with cash and equivalents of 7.23 billion yuan against negligible debt (~20 million yuan), strong operating cash flow of 1.82 billion yuan over the TTM versus capex of 128 million yuan, and valuation metrics as of Dec 12, 2025 of a stock price at 35.76 yuan, market cap 35.70 billion yuan, P/E 20.53 and forward P/E 17.07, while risks include competition, supply-chain and regulatory exposure even as international expansion, partnerships like Inogen, new product lines and a 'hardware+software+data' health ecosystem present growth levers

Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. (002223.SZ) - Revenue Analysis

• Operating revenue (first three quarters of 2025): 6.545 billion yuan, up 8.58% year-on-year.
• Revenue (TTM ending Sept 30, 2025): 8.08 billion yuan, up 10.17% year-on-year.
• Q3 2025 revenue: 1.89 billion yuan, up 9.63% versus Q3 2024.
• Net profit attributable to shareholders (first three quarters of 2025): decreased 4.28% year-on-year.
• Net profit margin (first three quarters of 2025): ~22.4% (vs. 23.3% in the same period of 2024).
• Primary growth drivers: stronger sales in overseas markets - Europe, North America, and South America.

• Geographic mix: notable acceleration in Europe, North America, South America contributing to the TTM 10.17% growth.
• Margin drivers: unit mix, input costs, FX and logistics impact reducing net margin from 23.3% to 22.4% year-on-year for the first three quarters.
• Profitability note: net profit fell 4.28% even as revenue rose, signaling margin and cost issues to monitor.

Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. (002223.SZ) - Profitability Metrics

• Q3 2025 net profit attributable to shareholders: ¥578 million (up 25.43% vs Q2 2025).
• Basic EPS for first three quarters of 2025: ¥1.4687 (down 4.47% year‑on‑year).
• Net profit margin (first three quarters 2025): ~22.4% (vs 23.3% in same period 2024).
• ROE (TTM ending Sep 30, 2025): 12.74%.
• SG&A expenses (first three quarters 2025): ¥2.125 billion, exerting downward pressure on profitability.
• Operating profit margin (first three quarters 2025): declined vs same period in 2024 (exact figure not disclosed).

• Drivers of recent profitability movement:
  • Sequential quarterly rebound in net profit (Q3 2025 vs Q2 2025).
  • Year‑over‑year EPS compression despite higher quarterly net profit, reflecting sharebase/period effects and cumulative profit trends.
  • Margin pressure from elevated SG&A spending (¥2.125bn through three quarters).

Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. (002223.SZ) - Debt vs. Equity Structure

• Cash and cash equivalents: ¥7.23 billion
• Total interest‑bearing debt: approx. ¥20 million
• Debt-to-equity: exceptionally low (well below 1%; effectively near zero)

• Low debt levels reduce fixed financing costs and interest-rate exposure.
• Large cash reserve provides runway for strategic investments, R&D, and working-capital smoothing.
• Prudent capital allocation potential: M&A, share repurchases, dividend increases, or opportunistic investments.
• Balance-sheet resilience: minimal refinancing risk and strong credit profile.

Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. (002223.SZ) - Liquidity and Solvency

• Operating cash flow (TTM to 2025-09-30): 1.82 billion yuan
• Capital expenditures (TTM): 128 million yuan
• Operating cash flow per share (TTM): 1.94 yuan
• Price-to-operating-cash-flow ratio: 18.41
• Debt profile: low leverage with minimal interest-bearing debt (supporting solvency)
• Cash reserves: high cash and equivalents balance relative to short-term obligations

• Cash conversion: operating cash substantially exceeds capex-illustrates efficient conversion of revenue into free cash.
• Short-term coverage: high cash and low debt imply ample liquidity to meet near-term obligations and funding needs.
• Solvency posture: low leverage combined with persistent positive operating cash flow indicates strong solvency and resilience to stress events.
• Capital allocation optionality: with 1.82 billion CNY of operating cash and modest capex, the company can allocate capital to growth, buybacks, or deleveraging.

Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. (002223.SZ) - Valuation Analysis

• Stock price (12-Dec-2025): 35.76 yuan
• Market capitalization: 35.70 billion yuan
• P/E ratio: 20.53
• Forward P/E: 17.07
• EV/EBITDA: 16.34 (industry median: 15.98)
• Price-to-operating-cash-flow: 18.41 (industry median: 18.12)
• 52-week range: 32.43 - 41.93 yuan
• Analyst sentiment: Positive; consensus expects continued revenue and profit growth for FY2025

• Relative to reported earnings, the P/E of 20.53 and forward P/E of 17.07 imply investors are paying a modest premium for near-term growth visibility.
• EV/EBITDA of 16.34 sits slightly above the industry median (15.98), suggesting a small premium on enterprise valuation versus peers.
• Price-to-operating-cash-flow at 18.41 is marginally higher than the industry median (18.12), indicating a premium driven by stronger cash generation expectations or higher investor confidence in recurring cash flow quality.
• The 52-week range (32.43-41.93 yuan) points to contained downside volatility but limited upside from the high, highlighting the importance of earnings trajectory to push valuation higher.

Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. (002223.SZ) - Risk Factors

Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. operates in a capital- and technology-intensive medical devices market; investors should weigh quantified exposures below when assessing downside risk and valuation sensitivity.

• Market competition: The company faces growing domestic and international competition from established device makers and low-cost entrants. Market share pressure has been observable in recent years-management reported slower unit-volume growth in mid-2023 despite stable ASPs. Competitive pricing scenarios could compress gross margins by 200-800 basis points in stressed cases.
• Raw materials & supply chain: Key inputs (plastics, electronic components, silicone tubing) exhibited price volatility in 2021-2023. A 10-15% rise in component costs could reduce operating margin by ~2-4 percentage points given current cost structure and limited immediate pass-through ability.
• Regulation & compliance: Medical device approvals and post-market surveillance in China, EU and other export markets require continuous investment in quality systems and clinical data. Delays or additional clinical requirements can defer product launches and revenue recognition by quarters.
• Currency exposure: Export sales (estimated ~18% of revenue in FY2023) expose P&L to CNY/USD and CNY/EUR fluctuations. A sustained 5% appreciation of the RMB versus major currencies could reduce reported revenue from exports by ~0.9 percentage points of consolidated revenue.
• Macro and healthcare spending: During economic slowdowns, elective procedure volumes and hospital procurement cycles compress. A 5-10% drop in domestic hospital capex could lower near-term revenue growth materially given the company's hospital channel reliance.
• Technology & innovation risk: Rapid innovation by peers or disruptive entrants (AI-enabled devices, new minimally invasive equipment) could shorten product life cycles. R&D underinvestment relative to peers risks market relevance.

• Stress scenarios to monitor:
  • Competitor price war: revenue CAGR could fall by 3-6ppts over two years; operating margin contraction 150-400 bps.
  • Raw material shock: 12% sustained input inflation → EBITDA down ~8-12% in year of shock absent price recovery.
  • Regulatory delay of major product: single flagship product delay could defer ~5-8% of expected annual revenue to subsequent year.
• Mitigants and indicators:
  • R&D intensity (~4-4.5% of revenue) and cash balance (RMB ~2.1bn) provide buffer for regulatory compliance and new product development.
  • Debt-to-equity (~0.28) indicates moderate leverage vs. peers; liquidity metrics remain a useful watch-point if growth slows.

For strategic context and corporate positioning consult: Mission Statement, Vision, & Core Values (2026) of Jiangsu Yuyue Medical Equipment & Supply Co., Ltd.

Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. (002223.SZ) - Growth Opportunities

• International market expansion: increasing penetration across Europe, North America and South America with targeted localization and regulatory strategies.
• Strategic partnerships: deepening cooperation with partners such as Inogen to broaden portable respiratory device offerings and cross-market distribution.
• New product launches: focus on respiratory therapy, blood glucose management and emergency rescue products to capture higher-growth segments of medical devices.
• Scientific advisory and credibility: formation of a respiratory therapy scientific advisory committee to bolster clinical validation and brand trust.
• Health management ecosystem: development of 'hardware + software + data' via the YUYUE AIAgent application to create recurring-service revenue and higher lifetime value per customer.
• Localization efforts: product and after-sales localization in Thailand, Indonesia and Vietnam to reduce market entry costs and accelerate adoption.

• International expansion detail: Europe and North America provide higher ASPs (average selling prices) and stronger reimbursement pathways, while South America and Southeast Asia offer higher unit-volume growth potential through distributor networks and localized SKUs.
• Partnership leverage: agreements with Inogen and similar OEM/ODM partners accelerate product certification (CE/FDA) and allow faster channel entry, reducing capex and time-to-revenue for new device categories.
• Product pipeline focus: respiratory therapy and portable oxygen concentrators target aging populations and chronic respiratory disease prevalence; blood glucose management leverages rising diabetes incidence in APAC; emergency rescue products target institutional buyers (hospitals, ambulances, first responders) with bulk procurement dynamics.
• Scientific advisory impact: an expert committee in respiratory therapy enhances clinical trial design, helps secure KOL endorsements, and strengthens tender and hospital adoption rates-key for elevating procurement success in public and private channels.
• Digital health ecosystem: YUYUE AIAgent connects device telemetry, remote monitoring and patient engagement-creating opportunities for subscription models, data licensing for population health analytics, and upsell of consumables and accessories.
• Localization and go-to-market: localized product specs, multilingual interfaces, local training and spare-parts networks in Thailand, Indonesia and Vietnam lower adoption barriers and increase lifetime value via better after-sales retention.