UIH(SH:688271)2025-10-21 01:52Summary 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]