UIH(SH:688271)2024-09-05 09:00Investment Rating - The report maintains a "Recommended" rating for the company [3][6]. Core Views - The company reported a slight revenue increase of 1.18% year-on-year for the first half of 2024, with total revenue reaching 5.333 billion yuan and a net profit of 950 million yuan, reflecting a 1.33% increase [1]. - Domestic bidding processes have slowed, impacting short-term performance, while international business continues to grow rapidly, with a 30% year-on-year increase in international revenue [1][2]. - The product mix is improving, contributing to a stable increase in profitability, with a gross margin of 51.01% in Q2 2024, up 3.41 percentage points [1][2]. Summary by Sections Financial Performance - For H1 2024, the company achieved revenues of 5.333 billion yuan, with a net profit of 950 million yuan and a cash flow from operations of -625 million yuan [1]. - Q2 2024 saw revenues of 2.983 billion yuan, a decrease of 2.47%, and a net profit of 587 million yuan, down 3.49% [1]. Domestic and International Markets - Domestic revenue for H1 2024 was 4.401 billion yuan, down 3.35% due to delays in bidding processes and the implementation of large-scale equipment updates [1]. - International revenue reached 933 million yuan, marking a 30% increase year-on-year, with the company expanding its market presence across over 70 countries [1][2]. Product Development and R&D - The company invested 1.017 billion yuan in R&D during H1 2024, an increase of 11.11%, maintaining a leading market share in various product categories [2]. - The company has launched over 120 products to date, with significant market shares in CT and MR products [2]. Profitability and Cost Management - The gross margin improved to 51.01% in Q2 2024, driven by higher service revenue and premium product sales [1][2]. - The company maintained stable expense ratios, with sales, management, and R&D expense ratios at 16.71%, 4.48%, and 15.49%, respectively [1]. Future Outlook - The company is expected to benefit from the recovery of domestic bidding activities and the ongoing expansion of its international business, with projected net profits for 2024-2026 adjusted to 2.296 billion, 2.788 billion, and 3.374 billion yuan, respectively [1][6].