Core Viewpoint - The company is actively leveraging artificial intelligence (AI) technology to enhance its medical imaging and radiation therapy capabilities, focusing on improving diagnostic efficiency and patient experience while navigating complex global trade environments [2][3][5]. AI Strategy and Applications - AI technology is becoming a key driver for innovation in medical imaging and radiation therapy, with hospitals increasingly favoring AI-enabled products for tasks such as lung nodule detection and brain hemorrhage screening [2][3]. - The company has developed several AI platforms across its product lines, including the uSense platform for CT, uAIFI for MR, and uExcel for molecular imaging, which enhance diagnostic accuracy and operational efficiency [5][11]. - Specific advancements include the uMRJupiter 5.0T MRI system, which improves imaging speed by 40% and enhances detection capabilities for small lesions, and the uMIPanvivo PET/CT system, which reduces full-body scan time to one minute [2][5]. Market Position and Global Strategy - The company has established a strong presence in the European market, with over 500 high-end medical devices serving more than half of EU member states, and is adapting its strategy in response to new EU procurement policies [2][3]. - The company aims to diversify its global supply chain and enhance local operations to mitigate risks associated with geopolitical factors, having set up subsidiaries in Poland and the Netherlands [2][3]. Financial Performance and Investment - The company reported fluctuations in operating cash flow due to macroeconomic factors and strategic investments, with R&D expenditures reaching 22.61 billion yuan, accounting for 21.95% of revenue [2][4]. - Despite short-term cash flow challenges, the company is focused on long-term value creation through innovation and global expansion, with a significant increase in overseas marketing and service teams [4][12]. Product Development and Innovation - The company is addressing common MRI challenges such as noise and scan duration through innovations like the QScan technology, which reduces noise levels by up to 97% and the ACS technology that cuts scan times by 80% [7][10]. - The introduction of the uMRUltra 3.0T MRI system and the uMROMEGA 3.0T system with advanced features aims to enhance patient comfort and diagnostic capabilities [8][10]. Shareholder Engagement and Dividends - The company has implemented a stable dividend policy, having distributed over 5.3 billion yuan since its IPO, and is committed to enhancing shareholder returns while balancing the need for reinvestment in high-tech medical equipment [12][14].

Core Viewpoint - The company has released its 2024 ESG report, highlighting its initiatives and achievements in environmental, social, and governance areas, with a strong focus on green and low-carbon development [1] Group 1: Environmental Initiatives - The company has established a cross-departmental carbon management team and set clear greenhouse gas reduction targets, aiming to reduce Scope 1 and Scope 2 carbon emission intensity by 50% by 2035, using 2023 as the baseline [1] - In 2024, the company's greenhouse gas emissions amounted to 54,443.92 tons CO2e (Scope 1 and Scope 2, based on market), representing a 28% reduction (21,000 tons CO2e) compared to the 2023 baseline [1] - The greenhouse gas emission intensity decreased to 5.29 tons CO2e per million revenue, a year-on-year decline of 21%, with 41% of the mid-term goal of a 50% reduction by 2035 already achieved [1] Group 2: Technological Advancements - The company has launched the world's first silicon carbide MRI, which improves intelligent diagnostic efficiency by 30% and reduces equipment energy consumption by 57% [2] - The new generation PET/CT product utilizes more environmentally friendly materials and technologies to replace traditional lead shielding structures, effectively reducing environmental pollution [2] - The breast DR limiter innovatively uses steel instead of lead for X-ray limiting and shielding, achieving environmentally friendly and harmless solutions [2] - In the transportation segment, the company employs cold chain transportation technology for MRI equipment, significantly reducing liquid helium consumption, saving nearly 700,000 liters in 2024 [2]

Investment Rating - The report maintains a "Recommended" rating for the company, indicating a forecasted increase of over 10% relative to the benchmark index in the next 12 months [1][5]. Core Insights - The company has shown a significant quarter-on-quarter recovery in Q4 2024, driven by innovation and expansion into overseas markets. The revenue for Q4 2024 reached 33.46 billion RMB, reflecting a year-on-year decrease of 15.90% but a substantial quarter-on-quarter increase of 106.43% [3][6]. - The company is focusing on increasing R&D investments and optimizing operational efficiency, which is expected to drive a return to growth. New innovative products, such as silicon carbide MRI and zero-noise DSA, are anticipated to create new growth opportunities [6][5]. - The company achieved a total revenue of 103.00 billion RMB in 2024, a year-on-year decline of 9.73%, with a net profit of 12.62 billion RMB, down 36.08% year-on-year. However, projections for 2025 and 2026 indicate a recovery with expected revenues of 124.13 billion RMB and 150.58 billion RMB, respectively [3][5]. Financial Performance Summary - The company’s total revenue for 2024 is projected at 103.00 billion RMB, with a year-on-year growth forecast of 20.51% for 2025 and 21.31% for 2026 [5][10]. - The net profit for 2024 is expected to be 12.62 billion RMB, with a significant recovery projected for the following years, reaching 18.46 billion RMB in 2025 and 23.72 billion RMB in 2026 [5][10]. - The earnings per share (EPS) is forecasted to be 1.53 RMB in 2024, increasing to 2.24 RMB in 2025 and 2.88 RMB in 2026 [10].