Core Viewpoint - Universal Healthcare Group Limited ("Universal Healthcare", 2666.HK) has officially released its 2024 Environmental, Social, and Governance (ESG) report, showcasing its commitment to ESG responsibilities and addressing key concerns of stakeholders [1] ESG Strategy and Governance - In 2024, the company renamed its strategic committee to the Strategic and ESG Committee, marking a significant step in integrating ESG into its corporate strategy [1] - The company aims to align its development with public service, employee growth, environmental sustainability, and stakeholder collaboration [1] Healthcare Service Quality - Universal Healthcare has made significant advancements in specialized medical services, adding one national key specialty, three provincial clinical key specialties, and nine municipal clinical key specialties in 2024 [3] - The company has received over 100 quality-related awards and has made substantial improvements in hospital infrastructure, adding over 3,000 beds and 270,000 square meters of new construction [3] Digital Transformation and Innovation - The company is advancing its smart hospital initiatives and integrating digital solutions into its operations, with over 40 hospitals online and serving 41 million patients [4] - Universal Healthcare has achieved a 30% reduction in resource input and over 30% in total cost savings through centralized cloud deployment of approximately 200 application systems [4] Green Development Initiatives - The company is committed to green development, with new projects like the Xidian Hospital's outpatient and inpatient complex achieving a 16.97% energy-saving rate and reducing CO2 emissions by approximately 281.7 tons annually [5] - Universal Healthcare has successfully secured overseas ESG loans, with its green credit scale nearing 10 billion yuan by the end of 2024 [5] Employee Welfare and Rights - The company emphasizes employee rights and development, with a workforce of 22,885, of which 71.4% are women, and all employees receiving training [6] - Universal Healthcare has implemented a talent strategy to strengthen its workforce and ensure high-quality development [6] Social Responsibility and Community Engagement - The company has engaged in 12 charitable projects in 2024, assisting 699 patients and receiving recognition for its contributions to community health [7] - Universal Healthcare has been recognized for its long-term commitment to social welfare, including support for healthcare in remote areas [7] Recognition and Future Goals - In 2024, Universal Healthcare was ranked 63rd in CCTV's "Pioneer 100 ESG Listed Companies in China" and achieved a significant increase in its S&P Global ESG score [7] - The company aims to leverage its "medical, industry, and finance" synergy to enhance its ESG practices and contribute to sustainable development in China [8]

Healthcare Operations - The company operates 73 medical institutions across 14 provinces and municipalities in China, including 6 tertiary hospitals and 31 secondary hospitals, with a total of over 16,000 beds[9]. - The company aims to contribute to the "Healthy China" strategy and enhance its role in the national healthcare sector[9]. - The company is committed to providing quality medical services that are safe, effective, accessible, and human-centered[9]. - The company has added 2 new tertiary specialty hospitals, achieving a breakthrough in national key specialties, with a total expansion area of 270,000 square meters[13]. - The company has served a cumulative total of 41 million patients through its internet health platform, enhancing its digital capabilities[14]. - The total number of patient visits across 65 consolidated medical institutions reached approximately 10.414 million, representing a year-on-year growth of 4.5%, with surgical procedures exceeding 106,000, up 13.3%[29]. - The total number of discharges increased by 6.2% to 521,000, with bed occupancy rate improving from 89.0% to 90.0%[30]. - The group successfully reduced overall drug and consumable costs as a percentage of revenue by 3 percentage points, enhancing the sustainability and risk resistance of medical institutions[31]. - The rehabilitation specialty revenue reached RMB 601.2 million in 2024, representing a year-on-year growth of 20.2%[43]. - The nephrology specialty generated revenue of RMB 317.3 million in 2024, with a year-on-year increase of 15.7%[44]. Financial Performance - The company achieved total revenue of RMB 13,663.5 million for the year ended December 31, 2024, representing a year-on-year growth of 0.1%[24]. - Revenue from the healthcare business reached RMB 8,488.3 million, an increase of 8.4% year-on-year, accounting for 62.1% of total revenue[24]. - The company's net profit for the year was RMB 2,258.3 million, up 2.7% year-on-year, with the healthcare business contributing RMB 522.2 million, a 15.0% increase[24]. - The return on total assets (ROA) was 2.71%, while the return on equity (ROE) for common shareholders was 12.37%[24]. - The company’s basic earnings per share (EPS) was RMB 1.07, maintaining the same level as the previous year[24]. - The company achieved a net profit of RMB 86.5 million from the medical equipment lifecycle management business in 2024, reflecting a year-on-year increase of 145.4%[47]. - The financial services segment reported a revenue of RMB 5,227.2 million in 2024, a year-on-year decrease of 11.1%, while net profit rose by 0.2% to RMB 1,747.6 million[56]. - The financial segment's revenue decreased by 11.1% to RMB 5,227.2 million, making up 38.3% of total revenue[62]. - The healthcare segment's gross profit rose by 31.1% to RMB 1,401.8 million, while the financial segment's gross profit decreased by 8.4% to RMB 3,028.1 million[61]. Strategic Development - The company focuses on the rapidly developing healthcare industry in China, leveraging its strengths in medical services, financial services, and health technology[9]. - The company emphasizes the integration of finance and healthcare to build a shared and win-win ecosystem in the health industry[9]. - The company is actively responding to opportunities in the healthcare sector, aiming to leverage its advantages as a central enterprise[9]. - The company has completed multiple acquisitions in fields such as ophthalmology and smart healthcare, improving its business layout under the "1+N" strategy[14]. - The company has launched nearly 600 lean management projects, achieving significant improvements in efficiency, quality, and cost savings[14]. - The company aims to leverage its strengths in medical and financial resources to build a comprehensive health ecosystem and create a world-class healthcare group[58]. - The company plans to continue strengthening its health technology business and accelerate the development of its health industry ecosystem[67]. Risk Management and Governance - The company has established a systematic risk control system, utilizing a multi-dimensional risk assessment model for management[128]. - The company has implemented a comprehensive risk management framework involving multiple departments to enhance asset quality and safety[149]. - The company actively monitors and manages credit risk by only engaging with reputable third parties and regularly assessing the creditworthiness of clients[145]. - The board regularly reviews and strengthens its corporate governance practices to ensure compliance with governance codes[168]. - The audit committee is responsible for monitoring the integrity of the company's financial statements and reviewing significant opinions related to financial reporting[188]. - The company has a dedicated risk control department that implements a tiered authorization approval system for regular business evaluations[128]. Employee and Board Diversity - The group had a total of 22,885 employees, an increase of 1,851 employees (8.8%) compared to June 30, 2023[165]. - Approximately 66.01% of employees hold a bachelor's degree or higher, while 6.84% possess a master's degree or higher[165]. - The board consists of 11 members, including 3 executive directors, 4 non-executive directors, and 4 independent non-executive directors[173]. - The board has maintained a minimum of three independent non-executive directors, fulfilling the listing rules requirements[179]. - The company emphasizes the importance of board diversity in skills, experience, and demographics to enhance performance quality[194]. - The current board composition is deemed sufficiently diverse, with a focus on various skills and backgrounds[195]. - The company plans to maintain its current gender ratio in the future, which is considered satisfactory[199].

Summary of Conference Call Notes Company Overview - The conference call is related to **环球医疗 (Global Healthcare)**, a company involved in the healthcare and financial services sectors, particularly focusing on medical services and equipment management. Key Points and Arguments Financial Performance - In 2024, the company achieved a total revenue of **136.63 billion** (0.1% YoY growth) and a net profit of **22.58 billion** (2.7% YoY growth) [2] - The net profit attributable to ordinary shareholders was **20.32 billion**, reflecting a 0.5% YoY increase [2] - Return on Assets (ROA) was **2.71%** and Return on Equity (ROE) was **12.37%**, maintaining strong industry performance [2] - The company has consistently maintained a dividend payout ratio of **30%** since its listing [2] Business Segments - The healthcare segment generated **84.88 billion** in revenue, marking an **8.4%** increase and accounting for **62.1%** of total revenue [3] - The comprehensive medical business segment reported revenue of **76.13 billion**, remaining stable despite external pressures [4] - The equipment lifecycle management business saw a **253.7%** increase in revenue to **8.47 billion**, with net profit rising **146.1%** to **0.91 billion** [5] - Financial services maintained a net profit of **17.48 billion**, a slight increase of **0.2%** [6] Strategic Initiatives - The company has become a pioneer in adopting the **IISB International Sustainable Disclosure Standards** and improved its **ESG rating** significantly from **24** to **61**, ranking first in the industry [3] - The company is focusing on enhancing its financial management and reducing financing costs, achieving a financing cost rate decrease of **1.13 percentage points** [8] - The company has established strategic partnerships with banks to secure **100 billion** in credit lines to support its business transformation [8] Market and Regulatory Environment - The company is adapting to new healthcare payment models, specifically the **DRG and DIP** payment systems, which require enhanced cost management and service quality [31][32] - The company is actively involved in the **digital transformation** of healthcare services, integrating AI technologies into its operations [56][57] Growth and Expansion Plans - The company plans to expand its **康养 (healthcare and wellness)** services, leveraging its existing hospital network to provide integrated care solutions [39] - There are ongoing efforts to enhance the capabilities of its hospitals, with several hospitals transitioning to specialized care facilities [15] - The company aims to develop a **national chain of eye care** facilities, capitalizing on its recent acquisition of a leading eye hospital [43] Challenges and Risks - The company faces challenges from regulatory changes in the healthcare sector, particularly regarding payment reforms and competition from private hospitals [30][35] - There are concerns about the sustainability of profit margins in the face of increasing operational costs and regulatory compliance [63] Additional Insights - The company emphasizes its commitment to social responsibility and sustainable practices, as evidenced by its high ESG score and community engagement initiatives [25] - The management is focused on long-term growth strategies, balancing profitability with public service obligations as a state-owned enterprise [64] This summary encapsulates the key points discussed during the conference call, highlighting the company's financial performance, strategic initiatives, market environment, growth plans, and challenges faced.

Group 1 - The acquisition agreement between General Technology Global Medical and Beijing Jinxu Medical was signed on March 28, marking a significant step in the healthcare sector [1] - General Technology Global Medical focuses on the full-cycle management of medical equipment, which is a key area of development and an important part of its industrial layout and second growth curve [2] - The company has successfully completed strategic acquisitions of three leading industry firms, establishing a comprehensive service matrix covering procurement consulting, financing leasing, maintenance services, and operational management [2] Group 2 - The acquisition of Jinxu Medical, a national high-tech enterprise specializing in medical endoscopes and related equipment, will allow General Technology Global Medical to hold a 67% stake, becoming the controlling shareholder [2] - This acquisition aims to fill critical product line gaps and address challenges related to the management and maintenance costs of medical endoscopes, enhancing the company's core competitiveness [2] - General Technology Global Medical plans to continue advancing high-quality, cost-effective full-cycle management services for medical equipment, aiming to become a leader in standardization and normalization within the industry [3]

Core Viewpoint - The company focuses on a long-term investment strategy centered around mergers and acquisitions of leading firms in the healthcare and financial sectors, aiming to enhance valuation and create a second growth curve [1][2][3] Financial Performance - In the fiscal year 2024, the company reported a revenue of approximately 13.663 billion yuan, a slight increase of 0.1% year-on-year [1] - The healthcare segment generated about 8.488 billion yuan, growing by 8.4% and accounting for 62.1% of total revenue, while the financial segment contributed 5.227 billion yuan, representing 38.3% of total revenue [1] - The net profit for the year was 2.258 billion yuan, up 2.7% from 2023, with the healthcare segment contributing 522 million yuan, a 15.0% increase [1] Business Segments - The company operates 73 medical institutions, including 65 consolidated medical institutions, with a total of 15,832 open beds [2] - The total number of patient visits across these institutions reached approximately 10.414 million, reflecting a year-on-year growth of 4.5% [2] - The revenue from medical services amounted to 7.9 billion yuan, with an average revenue per bed of about 500,000 yuan [2] Investment Strategy - The company emphasizes a strategy of acquiring leading firms and replicating successful models, particularly in the healthcare sector [3] - Recent acquisitions include the Shandong University of Traditional Chinese Medicine Affiliated Eye Hospital, which will serve as a flagship for integrating eye care resources [3] - The company also acquired Qingniao Ruantong, a leading smart health and elderly care enterprise, to enhance its operational platform [3] Financial Services - The financial services segment, primarily focused on providing comprehensive financial solutions to public hospitals, generated interest income of 4.745 billion yuan, a decrease of 1.0% year-on-year [5] - Despite the decline in revenue, the financial services still contributed nearly 80% of the company's profits, with a total revenue of 5.272 billion yuan, down 11.1% [5] - The company is actively transforming its financial services to focus on healthcare and elderly care sectors, leveraging its strengths in equipment procurement and operational management [5]

Core Insights - The company reported a stable overall performance for the fiscal year ending December 31, 2024, with a slight increase in revenue and profit [1][2] - The business structure continues to optimize, focusing on a combination of finance, comprehensive medical services, specialized medical care, and health technology [1] Financial Performance - Total revenue reached RMB 13.663 billion, a year-on-year increase of 0.1%, with the healthcare segment generating RMB 8.488 billion, up 8.4% [1] - Net profit amounted to RMB 2.258 billion, reflecting a 2.7% increase, with the healthcare segment contributing RMB 522 million, a growth of 15.0% [1] - The return on assets (ROA) was 2.71%, and the return on equity (ROE) stood at 12.37%, indicating stable financial health [1] Financial Services - Financial services revenue totaled RMB 5.227 billion, a decline of 11.1%, while net profit from this segment was RMB 1.748 billion, a slight increase of 0.2% [2] - The company maintained strong asset quality, with net interest-earning assets reaching RMB 71.277 billion, a growth of 5.8% from the beginning of the year [2] - The non-performing asset ratio was 0.99%, and the 30-day overdue rate was 0.97%, with a provision coverage ratio of 301.86%, enhancing risk resilience [2] Strategic Initiatives - The company aims to innovate and transform its financial services while supporting the real economy and its core business [2] - Future plans include transitioning towards four key areas: healthcare, equipment manufacturing, chemical pharmaceuticals, and innovative businesses [2] - The company is developing a new model for medical equipment that combines financing leasing with full lifecycle management, and is also focusing on the development of elderly care finance and digital finance [2]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenue of approximately RMB 13,663.5 million, a slight increase of 0.1% compared to RMB 13,650.2 million in 2023[3]. - The net profit for the year was approximately RMB 2,258.3 million, reflecting a growth of 2.7% from RMB 2,199.1 million in 2023[3]. - The healthcare business revenue reached approximately RMB 8,488.3 million, marking an 8.4% increase and accounting for 62.1% of total revenue[3]. - The total comprehensive income for the year was RMB 2,354.3 million, down from RMB 2,587.7 million in 2023[5]. - Basic earnings per share remained stable at RMB 1.07, while diluted earnings per share increased to RMB 1.02 from RMB 0.99 in 2023[4]. - The company's operating profit before tax for 2024 is RMB 2,907,119 thousand, an increase from RMB 2,866,213 thousand in 2023, reflecting a growth of approximately 1.1%[12]. - The company's pre-tax profit for 2024 was RMB 2,907,119,000, slightly up from RMB 2,866,213,000 in 2023, reflecting an increase of about 1.4%[67]. - The total revenue for the fiscal year ending December 31, 2024, was RMB 13,663,485 thousand, a slight increase from RMB 13,650,203 thousand in 2023, representing a growth of 0.1%[47]. Assets and Liabilities - The company's total assets as of December 31, 2024, were approximately RMB 86,032.3 million, up 7.1% from RMB 80,344.7 million in 2023[3]. - Non-current assets totaled approximately RMB 52,957.1 million, an increase from RMB 49,649.6 million in 2023[6]. - Current assets amounted to approximately RMB 33,075.2 million, compared to RMB 30,695.2 million in 2023[6]. - The company's total liabilities increased from RMB 29,903,345 thousand in 2023 to RMB 34,544,954 thousand in 2024, reflecting a rise of about 15.5%[7]. - The company's total equity increased from RMB 20,367,958 thousand in 2023 to RMB 22,869,745 thousand in 2024, a growth of around 12.3%[7]. - The company's total liabilities were reported at RMB 63,162,550 thousand, with financial liabilities at RMB 62,406,975 thousand and health liabilities at RMB 5,582,478 thousand[45]. - The total amount of bank and other financing secured by loans and receivables was RMB 9,227,529 thousand as of December 31, 2024, up from RMB 8,429,333 thousand in 2023[122]. Cash Flow - The cash flow from operating activities for 2024 is RMB 5,660,742 thousand, compared to RMB 6,041,080 thousand in 2023, indicating a decrease of about 6.3%[12]. - The company reported a net cash flow from operating activities of RMB 1,138,308 thousand for 2024, down from RMB 4,993,965 thousand in 2023, representing a significant decline of approximately 77.2%[13]. - Cash flow from financing activities showed a net outflow of RMB 520,670,000 in 2024, significantly improved from a net outflow of RMB 3,793,636,000 in 2023[14]. - The company's cash and cash equivalents decreased by RMB 467,325,000 in 2024, compared to an increase of RMB 141,332,000 in 2023[14]. - The cash and bank balances at the end of 2024 were RMB 3,168,050 thousand, down from RMB 3,395,033 thousand in 2023, a decrease of about 6.7%[107]. Revenue Segmentation - Medical service revenue accounted for RMB 7,295,603 thousand, contributing to the overall health business revenue of RMB 8,428,156 thousand[50]. - External customer revenue in the healthcare segment reached RMB 8,428,156 for 2024, compared to RMB 7,789,009 in 2023, reflecting a significant increase of 8.2%[51]. - The health technology business achieved a reportable revenue of RMB 697.0 million in 2024, representing a year-on-year growth of 189.9%[182]. - The financial business revenue decreased to RMB 5,227,167 thousand from RMB 5,882,032 thousand, indicating a decline of about 11.1%[162]. Expenses and Costs - The total cost of medical services was RMB 4,041,078 in 2024, slightly decreasing from RMB 4,077,373 in 2023, a reduction of 0.9%[60]. - The company reported a total of RMB 3,925,231 in employee benefits expenses for 2024, compared to RMB 3,348,351 in 2023, an increase of 17.2%[60]. - The total amount of other non-current assets increased to RMB 100,000 thousand in 2024 from RMB 25,941 thousand in 2023, reflecting a significant growth of approximately 285%[105]. Investments and Acquisitions - The company acquired 60% of Shandong Tuozhuang Medical Technology Co., Ltd. for RMB 82,500,000 on March 1, 2024[145]. - On May 1, 2024, the company purchased 70% of Beijing Zhongtaihe Medical Equipment Co., Ltd. for RMB 49,000,000[145]. - The total cash outflow for the acquisition, including cash paid, was RMB 332,496 thousand, resulting in a net cash outflow of RMB 239,147 thousand[148]. Strategic Initiatives - The group is focused on integrating into the national healthcare service system and improving service quality to meet the growing healthcare demands of the public[171]. - The company aims to enhance its integrated development system for ophthalmology, leveraging the capabilities of the newly acquired flagship hospital[177]. - The company plans to accelerate its transformation towards four key areas: healthcare, equipment manufacturing, chemical pharmaceuticals, and innovative businesses[191]. Regulatory and Compliance - The classification of liabilities as current or non-current has been clarified, with no impact on the group's financial position or performance following the application of the revisions[22]. - The group is evaluating the impact of the amendments to the Hong Kong Financial Reporting Standards, expecting no significant effect on consolidated financial data[22]. - The amendments to Hong Kong Financial Reporting Standard 9 clarify the derecognition date of financial assets or liabilities, with no expected significant impact on the group's financial statements[28].

Investment Rating - The report assigns an "Accumulate" rating to the company [1] Core Views - The company, a state-owned enterprise, has transitioned from a financing leasing business to a comprehensive medical service group, focusing on the integration of finance and healthcare [4][7] - The medical health segment has shown growth, with a revenue of 3.888 billion yuan in the first half of 2024, representing a year-on-year increase of 3.6% [5] - The financing leasing business has experienced a revenue decline of 10.7% year-on-year, but net profit increased by 2.0%, indicating effective cost control [6] Summary by Sections Company Overview - The company operates 72 medical institutions, including 5 tertiary hospitals and 32 secondary hospitals, as of June 30, 2024 [13] - The company aims to become a leader in the healthcare sector by leveraging its financial services as a foundation for its medical services [13][21] Medical Services Segment - The medical services segment has seen a significant increase in operational efficiency, with bed occupancy rates and single-bed revenue steadily improving [5][39] - The company has expanded its specialty medical services, particularly in oncology, nephrology, and ophthalmology, through acquisitions and partnerships [48] Financing Leasing Segment - The financing leasing business remains a cornerstone of the company's operations, with a non-performing asset ratio of 0.99% as of the first half of 2024, indicating strong asset quality [6][18] - The company has actively adjusted its financing leasing strategy in response to macroeconomic conditions and regulatory changes [18][63] Financial Projections and Investment Recommendations - The company is projected to achieve revenues of 13.670 billion yuan, 14.493 billion yuan, and 15.183 billion yuan for the years 2024, 2025, and 2026, respectively, with year-on-year growth rates of 0%, 6%, and 5% [7][66] - The expected net profit for the same period is projected to be 2.106 billion yuan, 2.254 billion yuan, and 2.398 billion yuan, with growth rates of 4%, 7%, and 6% [7][66]

Investment Rating - The report assigns an "Accumulate" rating to the company [1]. Core Viewpoints - The company, a state-owned enterprise, has successfully transitioned from a financing leasing business to a comprehensive medical service group, focusing on the integration of finance and healthcare [4][7]. - The medical health segment has shown growth, with a revenue of 3.888 billion yuan in the first half of 2024, representing a year-on-year increase of 3.6% [5]. - The financing leasing business remains a cornerstone, with a revenue of 2.667 billion yuan in the first half of 2024, although it experienced a decline of 10.7% year-on-year [6]. Summary by Sections Company Overview - The company operates 72 medical institutions, including 5 tertiary hospitals and 32 secondary hospitals, as of June 30, 2024 [13]. - The company aims to become a leader in the healthcare sector by leveraging its financing leasing roots and expanding into comprehensive medical services [13][21]. Medical Services Segment - The medical services segment has seen a significant increase in operational efficiency, with bed occupancy rates and single-bed revenue improving steadily [5][39]. - The company has expanded its specialty medical services, particularly in oncology, nephrology, and ophthalmology, enhancing its competitive edge [48]. Financing Leasing Segment - The financing leasing business has maintained a low non-performing asset rate of 0.99% and has shown resilience despite a challenging macroeconomic environment [6][18]. - The company has a diversified financing structure, with a significant portion of its debt coming from bank loans and bond issuances, allowing for competitive interest costs [59]. Financial Projections - The company is projected to achieve revenues of 13.670 billion yuan, 14.493 billion yuan, and 15.183 billion yuan for the years 2024, 2025, and 2026, respectively, with year-on-year growth rates of 0%, 6%, and 5% [7][66]. - The net profit attributable to shareholders is expected to be 2.106 billion yuan, 2.254 billion yuan, and 2.398 billion yuan for the same years, reflecting growth rates of 4%, 7%, and 6% [7][66].

Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [2][10]. Core Viewpoints - The company reported a slight revenue decline of approximately 1.2% year-on-year for the first three quarters of 2024, while the net profit attributable to the parent company increased by about 5.1% year-on-year. The healthcare business is showing steady development [2][3]. - The forecast for net profit attributable to the parent company for 2024-2026 is projected to be 2.108 billion, 2.281 billion, and 2.481 billion respectively, with year-on-year growth rates of 4.3%, 8.2%, and 8.8%. The current stock price corresponds to a PE ratio of 4.1, 3.8, and 3.5 times for the respective years [2][10]. - The company has significant potential for value reconstruction in its healthcare business, and its valuation is considered cost-effective, justifying the "Outperform the Market" rating [2][10]. Revenue and Profitability - For the first half of 2024, the company achieved a revenue of 6.543 billion (a decrease of 2.9%), with healthcare business revenue of 3.888 billion, representing a year-on-year increase of 3.6%, accounting for 59.4% of total revenue. The net profit for the first half was 1.252 billion, up 4.8%, with the healthcare business contributing 271 million, a growth of 16.3% [3][4]. - The overall operational status of the healthcare institutions is good, with outpatient and emergency visits increasing by approximately 4.9% and total discharges rising by about 6.7%. The average length of hospital stay has decreased to 9.8 days, and bed occupancy rates remain high at around 90% [7]. Financial Performance - The financial business generated a total income of 2.667 billion in the first half of 2024, a year-on-year decline of 10.7%. The average yield on interest-earning assets was 6.70%, with an average cost of interest-bearing liabilities at 3.84%, resulting in a net interest margin of 3.42% [4][6]. - The gross profit margin for the first half of 2024 was 34.6%, reflecting a 0.5 percentage point increase, attributed to a stable proportion of comprehensive medical income and an increase in the proportion of higher-margin equipment management business [7][9]. Valuation Metrics - The company’s valuation metrics indicate a PE ratio of 4.1 for 2024, 3.8 for 2025, and 3.5 for 2026, suggesting a favorable valuation compared to peers [10]. - The company has completed acquisitions of Shandong University of Traditional Chinese Medicine Affiliated Eye Hospital and Shandong Qingniao Ruantong, enhancing its operational capabilities [7].