UIH(SH:688271) HTSC·2025-04-29 06:40Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 158.03 [7][8]. Core Views - The company has returned to growth in Q1 2025, with revenue, net profit attributable to the parent, and net profit excluding non-recurring items showing year-on-year increases of 5.4%, 1.9%, and 26.1% respectively [1]. - The company is expected to achieve steady growth in 2025, driven by improved domestic equipment update policies and ongoing global expansion efforts [1]. Revenue and Profitability - For 2024, the company reported revenues of RMB 103.00 billion, a year-on-year decline of 9.7%, with net profit attributable to the parent at RMB 12.62 billion, down 36.1% [1]. - In Q1 2025, the company achieved revenues of RMB 24.78 billion, with a gross margin of 49.9%, reflecting a 0.4 percentage point increase year-on-year [1]. Business Segments - Equipment Products: In 2024, revenue from equipment products was RMB 84.45 billion, down 14.9% year-on-year, but the RT business saw a revenue increase of 18.1% [2]. - Maintenance Services: Revenue from maintenance services in 2024 was RMB 13.56 billion, up 26.8% year-on-year, with a gross margin of 63.4% [2]. Market Performance - Domestic Market: In 2024, domestic revenue was RMB 80.34 billion, down 17.5% year-on-year, but the company maintained the highest market share in new imaging products [3]. - International Market: In 2024, international revenue reached RMB 22.66 billion, up 35.1% year-on-year, with operations in over 85 countries [3]. Earnings Forecast and Valuation - The earnings per share (EPS) forecast for 2025 is RMB 2.43, with a projected PE ratio of 65x for 2025 [4]. - The target price of RMB 158.03 corresponds to a 54x PE for 2025, compared to a comparable company average PE of 45x [4].