UIH(688271) ZHESHANG SECURITIES·2024-11-10 00:23Investment Rating - The investment rating for the company is "Accumulate" [7] Core Views - The company reported a revenue of 6.95 billion yuan for the first three quarters of 2024, a year-on-year decline of 6.4%, with a net profit of 670 million yuan, down 36.9% week-on-week. The revenue for Q3 was 1.62 billion yuan, a year-on-year decline of 25%, and a net loss of 280 million yuan for the quarter. It is anticipated that Q4 will see a significant recovery in revenue due to the resumption of domestic bidding and continued expansion in overseas markets [2][3] Summary by Sections Growth Potential - Despite pressure from a slowdown in domestic bidding, the company is expected to enhance its market share in mid-to-high-end and ultra-high-end products due to improved product capabilities. The domestic revenue for the first three quarters of 2024 was 5.55 billion yuan, with a steady increase in market share in high-end products. The R&D investment for the first three quarters of 2024 accounted for 18.9% of revenue, a year-on-year increase of 0.5 percentage points. The company has launched over 120 products in the market, with several receiving NMPA registration in Q3 2024 [3] - The overseas market revenue for the first three quarters of 2024 reached 1.404 billion yuan, a year-on-year increase of 36.49%, with international market revenue accounting for 20.19% of total revenue, up 6.35 percentage points year-on-year. The company has received CE certification for 42 products and FDA (510k) approval for 47 products. The launch of the uMR Jupiter 5T, the highest field strength MRI system, is expected to drive revenue growth as the company accelerates its overseas promotion [3][4] Profitability - The gross margin for the first three quarters of 2024 was 49.4%, an increase of 0.74 percentage points year-on-year, with the proportion of high-margin maintenance service revenue rising to 13.9%, up 3.7 percentage points year-on-year. The gross margin is expected to improve from 2024 to 2026 as the company continues to expand its mid-to-high-end offerings and increase the share of maintenance service revenue [4] - The net profit margin for the first three quarters of 2024 was 9.5%, a decrease of 4.9 percentage points year-on-year, attributed to increased sales and R&D expenses. The net profit margin is expected to decline slightly in 2024 due to ongoing R&D and overseas expansion efforts [4] Earnings Forecast and Valuation - The earnings forecast for the company has been adjusted downwards, with projected total revenues for 2024, 2025, and 2026 expected to be 10.653 billion yuan, 12.726 billion yuan, and 15.196 billion yuan, respectively, reflecting year-on-year growth rates of -6.64%, 19.46%, and 19.41%. The net profit for the same years is projected to be 1.474 billion yuan, 1.794 billion yuan, and 2.268 billion yuan, with corresponding year-on-year growth rates of -25.36%, 21.73%, and 26.41% [5][10]