Investment Rating - Initiate at BUY with a target price (TP) of HK17.68 [3][4][12]. Core Insights - Rimag Group is a leading medical imaging service provider in China, holding the largest market share in terms of medical imaging centers, equipment units, and registrations by practicing radiologists [1][16]. - The medical imaging service market in China is projected to grow at a CAGR of 13.6%, reaching RMB661.5 billion by 2030, with the third-party medical imaging center market expected to grow at a CAGR of 30.7% to RMB18.6 billion by 2030 [1][7]. - Rimag's revenue increased at a CAGR of 25.3% from RMB592 million in 2021 to RMB928.9 million in 2023, with a projected CAGR of 23.3% from 2023 to 2026 [10][12][29]. Summary by Sections Investment Thesis - The third-party medical imaging center market in China has significant growth potential due to unmet demand for quality services and favorable government policies [6][7]. - Rimag is positioned to lead this market with a comprehensive suite of services and a strong operational model [7][8]. Market Overview - The medical imaging market in China faces challenges such as low equipment per capita and an imbalance in resource distribution, leading to long wait times in public hospitals [6][20]. - Rimag has established 97 imaging centers across 17 provinces, conducting approximately 20,000 examinations daily [8][16]. Business Model - Rimag operates a comprehensive medical imaging platform that includes imaging center services, imaging solution services, and Rimag Cloud services [22][24]. - The company provides operational management services to enhance the capabilities of regional and primary healthcare institutions [11][32]. Financial Performance - Rimag's attributable net profit increased from RMB0.4 million in 2022 to RMB44 million in 2023, with a net profit margin of 4.8% [10][29]. - Revenue from imaging center services accounted for 68.7% of total revenue in 2023, growing at a CAGR of 20.1% [36]. Competitive Landscape - Rimag holds 31 out of 163 third-party medical imaging center licenses in China, representing 19% of the total market [16][17]. - The company ranks second in revenue generated from imaging center services among all third-party operators in China [10][29].
一脉阳光：A leading medical imaging service provider in China