Core Viewpoint - The company has been confirmed as the primary selected bidder for multiple packages in the 2025 unmanned vehicle leasing centralized procurement project by China Post Express Logistics Co., Ltd [2] Group 1 - The company received a "Notice of Winning Bid" from the bidding agency [2] - The company is the main selected bidder for packages 3, 4, 5, and 8 [2] - The company is the first alternate bidder for packages 1 and 2, and the second alternate bidder for packages 6 and 7 [2]

Investment Rating - The report maintains an "Overweight" rating for several pharmaceutical companies including Jiangsu Heng Rui Medicine, Hansoh Pharmaceutical Group, 3SBio, and Jiangsu Nhwa Pharmaceutical, with related targets such as CSPC Innovation Pharmaceutical [6][28]. Core Insights - The innovative drug sector is experiencing high prosperity, and the report continues to recommend innovative drugs and their industry chain. It highlights the recent global strategic collaboration between Innovent Biologics and Takeda, which is expected to catalyze the innovative drug market [6][29]. - The report notes that the A-Shares pharmaceutical sector underperformed the market in the fourth week of October 2025, with the SW Pharmaceutical and Biological index rising only 0.6% compared to a 2.9% increase in the SHCOMP [8][30]. - In the same period, the Hong Kong pharmaceutical sector also underperformed, while the U.S. pharmaceutical sector performed in line with the market [31][19]. Summary by Sections Continuous Recommendation of Innovative Drugs and Industry Chain - The report emphasizes the ongoing recommendation of innovative drugs and the industry chain, maintaining "Overweight" ratings for various companies including Heng Rui Medicine, Hansoh Pharmaceutical, 3SBio, and Nhwa Pharmaceutical. It also recommends Biopharma/Biotech companies with innovative pipelines and increasing performance, maintaining "Overweight" ratings for Innovent Biologics, Xiamen Amoytop Biotech, and others [6][28]. Performance of A-Shares Pharmaceutical Sector - In the fourth week of October 2025, the A-Shares pharmaceutical sector's performance was weaker than the overall market, with a 0.6% increase compared to the SHCOMP's 2.9% rise. The medical service, pharmaceutical commerce, and medical equipment sub-sectors showed relatively better performance [8][30]. Performance of Hong Kong and U.S. Pharmaceutical Sectors - The Hong Kong pharmaceutical sector underperformed the market with a decline of 0.8%, while the U.S. pharmaceutical sector matched the market performance with a 1.9% increase. Notable stock movements included significant gains for companies like WuXi AppTec and declines for Alphamab Oncology in Hong Kong [31][19].

Core Viewpoint - The strategic partnership between United Imaging and Superhealth marks a significant milestone in the Indian medical imaging equipment procurement history, valued at over 25 billion INR (approximately 2 billion CNY), and represents a shift from product export to ecosystem co-construction for Chinese high-end medical equipment [2][16]. Group 1: Partnership Details - United Imaging will provide a complete set of advanced radiology imaging systems for 100 hospitals being built by Superhealth over the next five years, covering the entire lifecycle management [2][4]. - The collaboration includes a full range of high-end products, such as AI-enabled MRI devices, 160-slice CT, whole-body cardiac CT, digital mammography, and DR systems, integrated with Superhealth's self-developed electronic medical records and AI platform [4][12]. - To support this record-breaking order, United Imaging will establish a dedicated service hub and parts warehouse in India, creating over 1,000 high-skilled jobs [5][12]. Group 2: Market Impact - This partnership is expected to reshape the high-end imaging equipment market in India and signifies a new phase in United Imaging's global expansion strategy [2][8]. - United Imaging's overseas revenue reached 2.22 billion CNY in 2024, a year-on-year increase of 33.81%, with the Indian market being a crucial part of its global strategy [7][8]. - The deal represents over 10% of India's annual radiology imaging market, challenging the long-standing dominance of international giants like GE Healthcare, Philips, and Siemens [16][24]. Group 3: Technological Strength - United Imaging's success in securing this major order is attributed to its continuous breakthroughs in core technologies and a long-term strategic approach [9][21]. - The company has made significant advancements in the CT and MR fields, introducing innovative products that enhance imaging capabilities and efficiency [12][18]. - United Imaging's AI technology is becoming a key component of its global competitiveness, with over 20 products approved by the FDA [12][21]. Group 4: Strategic Alignment - The partnership reflects a strong alignment of strategic goals between United Imaging and Superhealth, focusing on improving healthcare access and quality in India [15][20]. - Superhealth aims to build a data-driven, imaging-first smart healthcare system, with imaging equipment as the foundational infrastructure [14][20]. - The collaboration is seen as a step towards promoting affordable healthcare and establishing advanced medical infrastructure in India [15][20]. Group 5: Broader Implications - This strategic cooperation signifies a global leap for Chinese high-end medical equipment companies, moving from simple product exports to comprehensive solutions [16][24]. - The case of India provides important strategic insights for the entire Chinese medical technology industry, emphasizing the need for complete service systems and technological platforms to maintain competitiveness [21][24]. - Emerging markets like India, Southeast Asia, and the Middle East present significant growth opportunities for Chinese medical technology firms [22][24].

Core Insights - On October 24, 2025, United Imaging Healthcare (688271) closed at 142.16 CNY, up 1.54% with a trading volume of 41,800 lots and a transaction value of 594 million CNY [1] - The net inflow of main funds was 26.49 million CNY, accounting for 4.46% of the total transaction value, while retail investors experienced a net outflow of 15.47 million CNY, representing 2.60% of the total transaction value [1][2] Financial Performance - For the first half of 2025, United Imaging reported a main revenue of 6.016 billion CNY, a year-on-year increase of 12.79%, and a net profit attributable to shareholders of 998 million CNY, up 5.03% [3] - The second quarter of 2025 saw a single-quarter main revenue of 3.538 billion CNY, an 18.6% year-on-year increase, and a net profit of 628 million CNY, up 6.99% [3] - The company’s gross margin stood at 47.93%, while the net margin was 16.42% [3] Market Position - United Imaging's total market capitalization is 117.162 billion CNY, ranking second in the medical device industry, with a net asset of 20.787 billion CNY, ranking third [3] - The company has a price-to-earnings ratio (P/E) of 58.7, which is lower than the industry average of 103.78, indicating a relatively favorable valuation [3] Analyst Ratings - In the past 90 days, 24 institutions have rated the stock, with 19 buy ratings and 5 hold ratings, and the average target price set at 171.35 CNY [4]

Investment Rating - The report maintains a "Market Weight" rating for the pharmaceutical and biotechnology industry, indicating that the industry index is expected to perform within ±10% of the market index over the next six months [3][24]. Core Insights - The SW pharmaceutical and biotechnology industry underperformed the CSI 300 index, declining by 3.41% from October 10 to October 23, 2025, which is approximately 1.22 percentage points lower than the index [10][24]. - Most sub-sectors within the industry recorded negative returns during the same period, with offline pharmacies and traditional Chinese medicine showing positive growth of 4.19% and 1.55%, respectively, while medical R&D outsourcing and medical equipment sectors faced declines of 8.86% and 7.66% [13][24]. - Approximately 56% of stocks in the industry reported positive returns, with notable performers including ZhenDe Medical, which saw a weekly increase of 43.97% [14][16]. - The overall industry valuation has decreased, with the SW pharmaceutical and biotechnology index's PE (TTM) at approximately 53.10 times, and a relative PE to the CSI 300 of 3.90 times as of October 23, 2025 [17][24]. Summary by Sections 1. Market Review - The SW pharmaceutical and biotechnology industry underperformed the CSI 300 index, with a decline of 3.41% from October 10 to October 23, 2025 [10]. - Most sub-sectors recorded negative returns, with offline pharmacies and traditional Chinese medicine performing better than others [13]. - About 56% of stocks in the industry achieved positive returns during this period [14]. 2. Industry News - On October 21, the Ministry of Finance announced the allocation of funds for enhancing medical services and capacity building, aimed at supporting various healthcare initiatives [18][22]. 3. Company Announcements - Junshi Biosciences disclosed that its wholly-owned subsidiary passed an FDA inspection, indicating compliance with current Good Manufacturing Practices [23]. 4. Industry Outlook - The report suggests focusing on sectors with potential for exceeding expectations in the upcoming quarterly reports, including medical devices, pharmaceutical commerce, aesthetic medicine, scientific services, and innovative drugs [24][25].

Summary of Conference Call Records Industry Overview - The medical imaging equipment market has shown significant recovery in 2025, with MRI equipment market growing by 70% year-on-year and procurement amounts increasing by 67% [1][10] - The ultrasound equipment procurement amount increased by 61% year-on-year, with procurement volume rising by 75% [1] Key Companies and Market Performance - **United Imaging**: - Achieved a 20% market share in sales and 25%-30% in volume for CT equipment, with high-end models like UCT 960 and 860 seeing increased sales [1][6] - In the PET CT segment, United Imaging maintained a 51% market share in the first seven months of 2025 [12] - The company’s average selling price for high-end products reached 18.04 million yuan [9] - **Mindray**: - Reported a year-on-year growth rate of 40% in procurement amounts from January to September 2025 [2] - Maintained a leading position in the ultrasound equipment market with a sales volume share of 38% [18] - **Neusoft**: - Rapidly increased market share through competitive pricing strategies [1][7] Market Trends and Dynamics - The domestic market share of Chinese-made radiological imaging equipment rose from 12% in 2019 to 37% by July 2025, driven by supportive procurement policies [1][3] - The CT equipment market experienced a decline in 2024 due to policy impacts but showed recovery towards the end of the year, with a 31% year-on-year sales increase in the first seven months of 2025 [1][6] - The procurement situation for medical devices in 2025 showed significant growth, with overall procurement amounts increasing by 54% year-on-year [2] Pricing and Competition - The average price of domestic products is lower than that of imported ones, which affects total sales despite high volume [8] - High-end products are expected to gain more market recognition, which is crucial for improving competitiveness against imported brands [8] Specific Equipment Insights - **MRI Equipment**: - The market share of United Imaging in MRI sales reached 27% in 2024, surpassing GE [10][11] - The domestic sales localization rate for MRI equipment was 40% in terms of sales value [11] - **Molecular Imaging Equipment**: - The market size reached 2.2 billion yuan in the first seven months of 2025, with United Imaging holding a 59% market share in PET CT sales in 2024 [12] - **Radiotherapy Equipment**: - United Imaging's integrated CT-guided linear accelerator achieved a 15% sales market share by July 2025 [16] - The overall sales amount for radiotherapy equipment in the first seven months of 2025 was 4 billion yuan, reflecting a year-on-year growth of 14.74% [15] Future Outlook - The high-end medical imaging sector is expected to see increased investment in photon technology CT and high-performance tubes, with United Imaging leading in innovation [19][21] - Despite challenges from international policies affecting exports, companies like United Imaging continue to perform well in both emerging and developed markets [22]

Core Viewpoint - The company has signed a project contract with Shanghai Construction Group and China State Construction Engineering Corporation for the development of the United Imaging Research and Development Base, with a total contract amount of 38.3295 million yuan [1] Group 1: Project Details - The project includes two phases: Phase I focuses on weak current intelligent systems for high-end medical imaging equipment, while Phase II involves weak current intelligent systems and a supercomputing center [1] - The United Imaging Research and Development Base in Jiading is a significant industrial park for United Imaging, integrating technology research, intelligent manufacturing, international training, global brand display, and living services [1] Group 2: Strategic Importance - The project aims to align with international standards, accelerating the research and innovation of next-generation products and technologies [1] - It will facilitate the industrialization process of high-end medical equipment and core components, including PET/MR, PET-CT, MR, CT, and XR technologies, promoting self-sufficiency in critical technologies [1]

Core Viewpoint - The Medical Health Index (980016) closed at 6646.6 points, down 0.3%, with a trading volume of 19.922 billion yuan and a turnover rate of 0.75% on October 23 [1] Group 1: Index Performance - Among the constituent stocks of the Medical Health Index, 16 stocks rose while 31 stocks fell, with Kanglong Chemical leading the gainers at 1.55% and Te Bao Biological leading the decliners at 6.07% [1] - The top ten constituent stocks of the Medical Health Index include: - WuXi AppTec (14.37% weight, latest price 101.90, market cap 304.045 billion yuan) - Hengrui Medicine (11.45% weight, latest price 65.14, market cap 432.347 billion yuan) - Mindray Medical (8.07% weight, latest price 221.80, market cap 268.920 billion yuan) [1] Group 2: Capital Flow - The net outflow of main funds from the constituent stocks of the Medical Health Index totaled 1.072 billion yuan, while retail investors saw a net inflow of 955 million yuan [3] - Detailed capital flow for key stocks includes: - Mindray Medical: Main net inflow of 66.9479 million yuan, retail net inflow of 3.6088 million yuan - Te Bao Biological: Main net inflow of 29.0966 million yuan, retail net outflow of 41.3737 million yuan [3]

Core Viewpoint - The stock of United Imaging Healthcare has experienced fluctuations, with a recent decline of 2.01% and a year-to-date increase of 11.07%, indicating volatility in investor sentiment and market performance [1]. Financial Performance - For the first half of 2025, United Imaging Healthcare reported a revenue of 6.016 billion yuan, representing a year-on-year growth of 12.79%, and a net profit attributable to shareholders of 998 million yuan, reflecting a growth of 5.03% [2]. - Cumulative cash dividends since the company's A-share listing amount to 641 million yuan [3]. Shareholder and Market Activity - As of June 30, 2025, the number of shareholders decreased by 23.01% to 16,500, while the average number of circulating shares per person increased by 29.89% to 35,953 shares [2]. - Major shareholders include the Huaxia SSE STAR 50 ETF, which increased its holdings by 3.2169 million shares, and the Hong Kong Central Clearing Limited, which raised its stake by 781,970 shares [3]. Stock Performance Metrics - As of October 22, the stock price was 140.16 yuan per share, with a market capitalization of 115.514 billion yuan. The trading volume was 293 million yuan, with a turnover rate of 0.25% [1]. - The stock has seen a decline of 5.44% over the past five trading days and 8.30% over the last 20 days, while it has increased by 5.07% over the past 60 days [1]. Business Overview - United Imaging Healthcare, established on March 21, 2011, specializes in high-performance medical imaging equipment, radiation therapy products, life science instruments, and medical digitalization and intelligence solutions. The main revenue sources include medical imaging diagnostic equipment sales (81.29%), maintenance services (13.56%), and software (0.47%) [1]. - The company operates within the pharmaceutical and biotechnology sector, specifically in medical devices [1].

Economic Overview - Shanghai's GDP for the first three quarters reached 40,721.17 billion yuan, with a year-on-year growth of 5.5% [1] - The industrial production maintained a growth trend, with the industrial added value increasing by 5.2% year-on-year [2] Industrial Performance - The total industrial output value for large-scale industries in Shanghai grew by 5.7% year-on-year, with an acceleration of 0.1 percentage points compared to the first half of the year [2] - Key sectors such as railway, shipbuilding, aerospace, and other transportation equipment manufacturing saw a significant increase of 15.9% [2] - Electrical machinery and equipment manufacturing grew by 14.3%, while computer, communication, and other electronic equipment manufacturing increased by 12.1% [2] Investment Trends - Industrial investment in Shanghai rose by 20.3%, outpacing the overall fixed asset investment growth rate of 14.3 percentage points [2] - The resilience and internal driving force of industrial growth have been enhanced, indicating a positive investment outlook for future production [2] Emerging Industries - The three leading industries in Shanghai experienced an 8.5% increase in output value, surpassing the overall industrial growth by 2.8 percentage points [3] - The artificial intelligence manufacturing sector grew by 12.8%, and integrated circuit manufacturing increased by 11.3% [3] - High-tech manufacturing output value rose by 10.3%, with aerospace and communication equipment manufacturing growing by 20.6% and 13.4%, respectively [3] Strategic Initiatives - Shanghai is focusing on enhancing its artificial intelligence industry by aiming for a tripling of innovative enterprises, industry scale, and talent [4] - The city has established 12 national-level intelligent factories and 254 advanced intelligent factories, leading the nation in smart manufacturing [4] - In the biopharmaceutical sector, Shanghai's industry scale is expected to exceed 1 trillion yuan this year, with significant advancements in innovative drug approvals [5] Future Industry Development - Shanghai aims to cultivate a number of future industry clusters and lead in disruptive technologies by 2027 [5] - The city plans to nurture around 20 leading enterprises in future industries and establish itself as a globally influential hub by 2030 [5]