Executive Summary
Shandong Weigao reported QQ2 2025 revenue of 3.322 billion CNY, up 105.97% year over year and 100% quarter over quarter, signaling a powerful rebound from prior-period baselines. The quarter delivered a gross margin of 49.72% (gross profit of 1.6517 billion CNY) with an EBITDA of 819.20 million CNY and an operating income of 587.87 million CNY, translating to an operating margin of 17.70% and a net margin of 15.18% (net income of 504.16 million CNY). Diluted earnings per share stood at 0.11 CNY. The company’s balance sheet remains liquidity-rich, with a current ratio of 3.73 and a debt ratio of 0.153, underscoring conservative leverage alongside robust cash generation. Cash per share is 2.11 CNY, and the payout ratio is 55.7%, indicating a healthy approach to shareholder returns while maintaining balance sheet flexibility. The trailing four-quarter revenue runs at approximately 6.64 billion CNY, illustrating a meaningful growth trajectory when viewed on a twelve-month basis. While management commentary is not provided in the dataset, the results imply continued strength in domestic hospital demand, disciplined cost management, and potential operating leverage as the company expands its single-use medical device portfolio. Investors should monitor hospital capex cycles, material costs, and competitive dynamics within the Chinese medical device space, where margin dispersion exists across peers.
Key Performance Indicators
QoQ: 100.00% | YoY:105.97%
QoQ: 100.00% | YoY:109.13%
QoQ: 100.00% | YoY:132.86%
QoQ: 100.00% | YoY:110.26%
QoQ: 100.00% | YoY:120.00%
Key Insights
Revenue performance: QQ2 2025 revenue of 3.322 billion CNY, up 105.97% YoY and 100.00% QoQ. Gross Profit: 1.651 billion CNY; gross margin 49.72% (0.497213). Operating income: 587.87 million CNY; operating margin 17.70% (0.176962). Net income: 504.16 million CNY; net margin 15.18% (0.151762). EBITDA: 819.20 million CNY; EBITDA margin 24.66% (0.246596). Earnings per share (EPS): 0.11 CNY; diluted EPS: 0.11 CNY. Balance sheet and liquidity: current ratio 3.73; quick ratio 3.32; cash ratio 1.61. Lev...
Financial Highlights
Revenue performance: QQ2 2025 revenue of 3.322 billion CNY, up 105.97% YoY and 100.00% QoQ. Gross Profit: 1.651 billion CNY; gross margin 49.72% (0.497213). Operating income: 587.87 million CNY; operating margin 17.70% (0.176962). Net income: 504.16 million CNY; net margin 15.18% (0.151762). EBITDA: 819.20 million CNY; EBITDA margin 24.66% (0.246596). Earnings per share (EPS): 0.11 CNY; diluted EPS: 0.11 CNY. Balance sheet and liquidity: current ratio 3.73; quick ratio 3.32; cash ratio 1.61. Leverage: debt ratio 0.153; debt/equity 0.229; long-term debt to capitalization 0.157; total debt to capitalization 0.186. Return metrics: ROA 2.79%; ROE 4.18%; ROCE 3.84%. Cash flow: operating cash flow per share 0.192 CNY; free cash flow per share 0.192 CNY; cash per share 2.11 CNY; dividend payout 55.7%; dividend yield 2.20%. Valuation: price-to-earnings 6.33x; price-to-book 1.06x; price-to-sales 3.84x. Market context: trailing four-quarter revenue ≈ 6.64 billion CNY, indicating solid momentum beyond the single quarter. Peer context: gross margin range among listed Chinese med-tech peers varies (e.g., 0867.HK ~72.3% GM; 1112.HK ~62.5% GM; 0853.HK ~56.4% GM), suggesting Weigao operates mid-to-high efficiency given its product mix and cost structure.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
3.32B |
105.97% |
100.00% |
| Gross Profit |
1.65B |
109.13% |
100.00% |
| Operating Income |
587.87M |
132.86% |
100.00% |
| Net Income |
504.16M |
110.26% |
100.00% |
| EPS |
0.11 |
120.00% |
100.00% |
Key Financial Ratios
operatingProfitMargin
17.7%
operatingCashFlowPerShare
$0.19
freeCashFlowPerShare
$0.19
dividendPayoutRatio
55.7%
Management Commentary
Note: No earnings call transcript was provided in the dataset. Consequently, there are no management quotes to synthesize by themes (strategy, operations, market conditions) within this analysis. Investors should consider that any forward-looking commentary would typically touch on order trends, hospital procurement cycles, channel strategy, and raw material cost management. Once transcripts are available, these sections should be updated with management tone and quantified guidance.
Not available in dataset.
—
Not available in dataset.
—
Forward Guidance
There is no explicit forward guidance disclosed in the provided QQ2 2025 materials. Given the strong quarterly momentum and robust liquidity, a cautious, guidance-lite stance may be anticipated, with management potentially highlighting expectations for continued revenue growth supported by domestic hospital capex and ongoing device demand. Factors to monitor include: (1) hospital procurement cycles and tender wins, (2) raw material and component cost trends, (3) regulatory shifts affecting medical device pricing or reimbursement, and (4) competitive dynamics and market share changes in single-use devices. A prudent approach would assume modestly constructive revenue growth in H2 2025 with potential margin improvement if cost control and manufacturing efficiency continue to scale.