Core Viewpoint - Pacific Securities maintains a "Buy" rating for Universal Medical (02666), projecting revenue growth and profit increases from 2025 to 2027, with a target price of HKD 7.97 based on a 6.5x PE valuation for 2025 [1] Financial Performance - For the first half of 2025, Universal Medical reported revenue of CNY 75.81 billion, a year-on-year increase of 15.9%, and a net profit of CNY 13.35 billion, up 6.6% [1] - Basic earnings per share (EPS) reached CNY 0.65, reflecting an 8.0% increase year-on-year, with a return on equity of 14.08% and a return on total assets of 3.11% [1] Business Segments Healthcare Business - The healthcare segment generated revenue of CNY 49.64 billion in H1 2025, accounting for 65.5% of total revenue, with a year-on-year growth of 27.7% [2] - The health technology sub-sector saw a remarkable growth rate of 142.1%, indicating its potential as a key growth area [2] - The comprehensive medical sector includes 65 consolidated hospitals and over 16,000 open beds, with a total of 5.09 million patient visits, despite a 14.6% decline in segment profit due to external pressures [2] Financial Business - The financial segment, focusing on medical financing leasing, achieved revenue of CNY 28.51 billion, a 6.9% increase year-on-year [3] - The financial business emphasizes risk control, with a non-performing asset ratio of 0.97% and a provision coverage ratio of 313.87%, indicating strong risk management capabilities [3] - The average cost of interest-bearing liabilities decreased by 44 basis points to 3.40%, enhancing cost control alongside risk management [3]

Core Viewpoint - Pacific Securities maintains a "Buy" rating for Universal Medical (02666), projecting revenue growth from 147.23 billion to 162.54 billion CNY and net profit growth from 21.18 billion to 23.66 billion CNY from 2025 to 2027, with an estimated PE ratio decreasing from 4.99 to 4.47 times [1] Group 1: Financial Performance - In the first half of 2025, the company achieved revenue of 75.81 billion CNY, a year-on-year increase of 15.9%, and a profit of 13.35 billion CNY, up 6.6% [1] - Basic earnings per share for 2025H1 were 0.65 CNY, reflecting an 8.0% increase year-on-year, with a return on equity of 14.08% and a return on total assets of 3.11% [1] - The medical health segment generated 49.64 billion CNY in revenue, accounting for 65.5% of total revenue, with a year-on-year growth of 27.7% [2] Group 2: Medical Health Business - The medical health segment is the core growth driver, with significant contributions from three areas: 1. Comprehensive medical services with 65 hospitals and over 16,000 beds, despite a 14.6% decline in profit to 2.31 billion CNY due to external pressures [2] 2. Specialized medical services, including the acquisition of Shandong University of Traditional Chinese Medicine Affiliated Eye Hospital [2] 3. Health technology revenue reached 6.46 billion CNY, a remarkable 142.1% increase, managing assets worth 370 billion CNY across over 1,600 institutions [2] Group 3: Financial Business - The financial business, focusing on medical financing leasing, generated 28.51 billion CNY in revenue, a 6.9% increase year-on-year [3] - The financial segment's non-performing asset ratio was 0.97%, with a provision coverage ratio of 313.87%, indicating strong risk management capabilities [3] - The average cost of interest-bearing liabilities decreased by 44 basis points to 3.40%, enhancing both risk resistance and cost control [3]