Summary of ISG Global Index Call - Q4 2025 Company and Industry Overview - The call was hosted by Information Services Group (ISG), focusing on the IT and business services industry, which influences $200 billion of technology spending annually [5][11] - The ISG Index measures the health and growth of the technology industry, including managed services and cloud-based software and infrastructure services [11] Key Insights and Arguments Market Performance - The Americas led market growth in 2025, crossing $23 billion in managed services ACV for the first time, driven by strong ITO activity and a rebound in BFSI [12] - EMEA saw a 20% increase in ACV for engineering services, with cloud demand accelerating and deal sizes expanding [13] - The global combined market reached $34.3 billion in ACV in Q4 2025, marking a 16% year-over-year increase and the fourth consecutive quarter above $30 billion [14] - The as-a-service market grew 29% globally in 2025, while managed services grew only 1.3% [14][15] Segment Performance - SaaS accounted for 66% of the total combined market, with significant growth in cloud, software, and consumption-based services [15] - Managed services faced constraints due to fewer mega-deals and pricing pressure, with a slight decline in Q4 2025 [15][16] - Engineering services were the fastest-growing segment, with a 35% increase in ACV year-over-year, driven by large integrated multinational providers [21] - BPO generated over $2 billion in ACV in Q4 2025, up 13% year-over-year, but faced annual declines [24][25] Regional Insights - The Americas generated $23.5 billion in managed services ACV in 2025, up 9% from 2024, while EMEA's managed services ACV totaled $16.7 billion, down 1.4% [28][30] - Asia Pacific struggled, with managed services ACV down 27% year-over-year, primarily due to a decline in the smallest deal category [31] Future Outlook - For 2026, managed services growth is forecasted at 2.1%, while as-a-service is expected to grow by 20% [54] - Enterprises are navigating macroeconomic uncertainties, but investments in AI and cloud infrastructure are expected to continue [54] - The demand for AI-driven outcomes and flexible commercial models will shape the future of the outsourcing market [55] Additional Important Insights - The engineering segment showed strong growth across various sectors, with EMEA leading in ER&D spend, up 86% for the year [22] - AI is now a dominant driver of growth, with hyperscaler investments significantly impacting the market [13][41] - The BPO market is in a reset mode, with uneven growth concentrated in specific functions and industries, particularly industry-specific BPO [26][84] - The call highlighted the importance of AI in transforming traditional outsourcing models, with a focus on hyper-personalization and domain-led transformation [84] This summary encapsulates the key points discussed during the ISG Global Index call, providing insights into market performance, segment growth, regional dynamics, and future outlooks in the IT and business services industry.

Summary of United Imaging (688271.SS) Conference Call Company Overview - **Company**: United Imaging - **Industry**: Medical Imaging Equipment - **Market Context**: The CT scanner is the largest category by bidding value among medical imaging equipment in China. Key Points 1. Photon-Counting CT (PCCT) Market Potential - The NMPA approved domestic PCCT from United Imaging and Neusoft on August 26, 2025, which has generated strong investor interest in this high-end CT subcategory [1][4] - Siemens' PCCT system, NAEOTOM Alpha, has shown strong sales performance in China, accounting for 22% of its sales year-to-date 2025 [6][18] 2. Clinical Benefits and Technology Pathways of PCCT - PCCT utilizes photon-counting detectors for higher energy and spatial resolution, reducing image noise and radiation dose [10] - Higher application potential in cardiovascular imaging, pediatrics, neurovascular and brain imaging, and early cancer screening [10] - Three main detector technology pathways: cadmium telluride (CdTe), cadmium zinc telluride (CZT), and deep silicon [14] 3. Market Size Forecast - Anticipated peak sales of PCCT in China by 2028E at Rmb1.6 billion (approximately USD 228 million) [23] - Adoption of PCCT likely limited to top-tier hospitals due to high unit prices and lack of reimbursement for advanced technology [18] 4. Financial Impact on United Imaging - Expected to capture approximately 35% market share of PCCT by 2028E, translating to Rmb518 million in sales, about 2% of total revenue [23] - Slightly raised revenue and profit forecasts for United Imaging, with a new target price of Rmb175 [23][28] 5. Revenue and Profit Forecasts - Updated revenue and profit estimates for 2025E to 2028E show a steady increase: - 2025E Revenue: Rmb12,391 million - 2026E Revenue: Rmb16,178 million - 2027E Revenue: Rmb21,162 million - 2028E Revenue: Rmb27,457 million [24] 6. Investment Thesis - United Imaging is a leading manufacturer in the medical imaging sector with a growing market share and increasing government funding support [25] - The company is expected to see a rise in service-related revenue, improving gross profit margins [25] - Current trading near median P/E multiple since listing, with significant long-term growth potential [25] 7. Risks and Methodology - Target price of Rmb175 based on a two-stage DCF valuation with a discount rate of 9% and terminal growth rate of 2% [28] - Key risks include chip supply chain issues, raw material costs, macroeconomic downturns in China, and potential value-based pricing risks [28] Additional Insights - The report emphasizes the limited economic return for hospitals investing in PCCT due to high costs and regulatory constraints on examination fees [18] - The company’s growth is supported by the increasing demand for advanced medical imaging technologies and government initiatives [25]