Recently, Shanghai United Imaging Healthcare Co., Ltd. (also known as, United Imaging Healthcare) released its 2024 semi annual report, with a revenue of 5.333 billion yuan in the first half of the year, a year-on-year increase of 1.18%; Realize a net profit attributable to the parent company of 950 million yuan, a year-on-year increase of 1.33%; Deducting non attributable net profit of 798 million yuan, a year-on-year increase of 1.39%.

The growth of Zhonglian Film Medical has slowed down in the semi annual report, leading to a continuous decline in its stock price. Now that the market value of United Imaging Healthcare is not guaranteed at billions, how can the new rich break through the situation?

CT business is sluggish, with a market value of billions falling
Founded in 2011, United Imaging Healthcare is committed to providing global customers with a full range of independently developed high-performance medical imaging diagnosis and treatment equipment, life science instruments, and innovative solutions covering the entire chain of "basic research clinical research medical translation".

Since its listing on the Shanghai Stock Exchange's Science and Technology Innovation Board on August 22, 2022, United Imaging Healthcare has been writing a "miracle". On the day of its listing, United Imaging Healthcare issued 100 million shares at a price of 109.88 yuan per share, raising a total of 109.88 billion yuan, making it the largest IPO on the Science and Technology Innovation Board that year and the third largest IPO since its establishment. And on the first day of listing, the stock price of United Imaging Healthcare soared by over 60%, with a market value exceeding 150 billion yuan at one point, earning it the title of "the first domestic high-end medical imaging equipment stock".

By 2 years, the market value of United Imaging Healthcare has fallen from billions. Perhaps there is a question that, looking at the semi annual report, although the growth rate has slowed down, the revenue and net profit attributable to the parent company still hit new highs. Why is United Imaging Healthcare in deep trouble? This answer has already begun to emerge from previous financial reports and prospectuses.

United Imaging Healthcare's business focuses on the field of medical imaging, with the CT and MR business segments accounting for the majority of revenue. The CT business has been the mainstay of United Imaging Healthcare's revenue since 2019. From 2019 to 2021, United Imaging Healthcare's CT sales revenue has consistently ranked first, increasing from 34.67% to 47.87%. But starting from 2022, the sales volume of CT will be 1769 units, a year-on-year decrease of 2.48%; The sales revenue was 3.772 billion yuan, a year-on-year increase of 10.26%, and the proportion of total revenue decreased to 40.83%.

In 2023, United Imaging Healthcare achieved a revenue of 11.141 billion yuan, a year-on-year increase of 23.52%. This is also the first time that United Imaging Healthcare's annual revenue has exceeded 10 billion yuan; The net profit attributable to the parent company was 1.974 billion yuan, a year-on-year increase of 19.21%, and the net profit after deducting non recurring expenses was 1.665 billion yuan, a year-on-year increase of 25.38%. Despite the booming revenue, the proportion of CT business is still declining: sales volume increased by only 30 units compared to the previous year, sales revenue increased by 7.78% year-on-year, and the proportion further decreased to 35.63%.

The decline in the proportion of CT scans is undoubtedly one of the reasons for the current difficulties faced by United Imaging Healthcare. However, looking at the overall environment, the medical industry is facing a capital winter, and the anti-corruption storm sweeping through the second half of 2023 will also have a significant impact on the medical industry.

Based on these influences, the situation of United Imaging Healthcare has not improved in 2024. In Q1 2024, United Imaging Healthcare achieved a revenue of 2.35 billion yuan, a year-on-year increase of 6.22%; Achieved a non recurring net profit of 300 million yuan, a year-on-year increase of 8.52%, and the performance growth rate hit a historic low since 2021. In Q2 2024, the revenue of United Imaging Healthcare decreased by 2.47% year-on-year, marking the first quarterly year-on-year decline since United Imaging Healthcare went public.

This decline also continued until the 2024 H1 financial report. The sales revenue of CT business in the first half of the year was 1.618 billion yuan, a year-on-year decrease of 22.73%, accounting for 30% of the total revenue, and it is no longer the business with the highest revenue proportion; XR's performance is also not ideal, with a revenue of 256 million yuan in the first half of the year, a year-on-year decline of 20.74%; Fortunately, MR managed to sustain its revenue during the difficult times, generating 1.685 billion yuan in revenue in the first half of the year, a year-on-year increase of 12.26%, accounting for 32%, surpassing the CT business. In addition, the domestic revenue of United Imaging Healthcare has also declined, with a revenue of 4.401 billion yuan in the first half of 2024, a year-on-year decrease of 3.36%, and domestic revenue accounting for 82.51%.

Increased research and development, stable domestic position in multiple businesses
Although the domestic market of United Imaging Healthcare is currently under short-term pressure, the pace of research and development is steady, and the amount of research and development is increasing year by year. In 2023, the R&D expenses amounted to 1.729 billion yuan, a year-on-year increase of 32.33%. In the first half of 2024, the total R&D investment of United Imaging Healthcare exceeded 1 billion yuan, a year-on-year increase of 11.11%.

Based on continuous investment in high research and development funds, United Imaging Healthcare has a rich pipeline of medical products and has applied for 10327 intellectual property rights, with a total of 5516 obtained.

Moreover, although the article mentioned that United Imaging Healthcare's CT business no longer carries the banner of revenue, and even its revenue has begun to decline, its market position in China's CT products has remained consistent, with many businesses ranking among the top in the domestic market. According to the semi annual report of United Imaging Healthcare
 CT - United Imaging Healthcare ranks first in the comprehensive market share in China. Ranked first in market share for CT below 40 rows; Ranked third in CT market share in rows 41-63; Ranked first in the market share of 64 to 80 row CT scanners; Ranked second in the CT market share from 128 to 256 rows; Ranked second in the CT market share above 256 rows. The market share of mid to high end and ultra high end CT represented by 128-256 row and 256 row and above CT has significantly increased year-on-year.
 MR - United Imaging Healthcare ranks third in market share in China. Ranked first in market share in the 1.5T and below superconducting MR market; Ranked third in market share in the 3.0T MR market; Ranked first in the market share of ultra-high field MR equipment with a capacity of 3.0T and above. Ultra high field magnetic resonance uMR Jupiter 5T continues to maintain a significant lead, while 3.0T MR maintains a growth trend.
 MI - According to the statistics of the newly added market amount in China, in the first half of 2024, United Imaging Healthcare's PET/CT market share ranked first, and PET/MR's market share in China temporarily ranked second. In the first half of 2024, United Imaging Healthcare invested 120 million yuan in Jiuyi Yuan, becoming one of the few manufacturers in the industry that can provide users with a complete solution of "nuclide preparation+digital PET/CT diagnosis and treatment integration".
 XR - Fixed DR and mobile DR devices have basically achieved localization, with a localization rate of over 50% for breast DR and less than 10% for DSA. In the first half of 2024, according to the statistics of the newly added market amount in China, United Imaging Healthcare ranks first in the market share of diagnostic XR products (including fixed DR, mobile DR, and breast DR). Among them, the fixed DR market share ranks first, the mobile DR product market share ranks third, and the breast DR market share ranks fourth. Ranked fourth in market share for XR intervention, among which DSA products such as uAngio 960 and uAngio AVIVA have performed outstandingly.
 RT - Varian and Yikeda, as leading companies in radiotherapy equipment, occupy the main share of China's RT market. In the radiotherapy equipment market, according to the statistics of the domestic new market amount in the first half of 2024, United Imaging Healthcare's RT product market share ranks third, and has become one of the few suppliers in the industry with a complete radiotherapy closed-loop solution, further narrowing the gap with the industry's top manufacturers.
Moreover, the growth rate of United Imaging Healthcare in the international market is also continuously accelerating. In 2023, United Imaging Healthcare International Market achieved a revenue of 1.678 billion yuan, a year-on-year increase of 54.72%; In the first half of 2024, the international market revenue reached 933 million yuan, a year-on-year increase of 29.94%, and the proportion continued to increase to 17.49%, a year-on-year increase of 3.87 percentage points. The international order volume maintains a high-speed growth trend, and its products have accumulated over 13700 medical institutions in more than 70 countries and regions worldwide.

Under various influences, the performance of 16 companies has declined
Due to various reasons such as the medical anti-corruption campaign, the decrease in centralized procurement prices, and intensified competition, in addition to United Imaging Healthcare, many companies in the medical device sector have experienced a sharp decline in their quarterly or semi annual financial reports, not only in the imaging industry, but also in the grassroots market, IVD enterprises, ophthalmology enterprises, etc. According to incomplete statistics, at least 16 machinery companies have experienced a significant decline in performance, with the entire industry showing a green trend.

Among these companies with overall or partial green performance, there are also leading and outstanding companies in the field like United Imaging Healthcare. While the overall environmental impact is a major factor, it also exposes some structural problems in the company. Therefore, the following analysis will select some mechanical enterprises in certain sectors.

Yuwell Medical
Yuwell Medical was famous during the COVID-19. Since 2020, the demand for its core industries, such as ventilators and oxygen generators, has surged. In 2023, it has created the best annual performance in history, with revenue approaching 8 billion yuan, which is close to the five-year goal of Yuwell Medical -10 billion yuan revenue. But the sharp drop in performance in the 2024 interim report has made many people sweat.

Along with the decline in performance, the problems of Yuwell Medical have also been exposed. Previously, the performance of Yuwell Medical was mostly achieved through its M&A style "buy buy buy" strategy. Now, its outward growth has stagnated, and how to solve the dilemma of increasing performance has become an urgent problem for Yuwell Medical.

OVCTEK
OK Mirror has become popular all over the country, and as early as 2005, OPPO, which seized the market, has thus firmly established its position as the "OK Mirror Brother". But the good times did not last long. After the epidemic, the wholesale and centralized procurement of OK mirror registration certificates led to the lowest single price of OK mirror standard films, which were originally priced at tens of thousands of yuan, dropping to 1760 yuan per film. These two factors put the "OK Mirror Brother" in a difficult situation.

In the face of intensified competition in the myopia prevention and control market, there are more and more types and brands of OK lenses and other substitutes in the market. After Xingqi Eye Medicine's myopia miracle drug officially receives approval, the position of OK lenses will be even more precarious. How will Opcon Vision resolve the crisis?

Autobio
As one of the three top tier IVD companies in China, Autobio's performance in Q2 2024 was relatively flat. Although its revenue slightly increased, its net profit showed a downward trend.

However, looking at the past performance of Autobio, it is not difficult to find that its style is relatively stable, and its net profit growth has been relatively flat in recent years. With the gradual implementation of policies such as DRGs in the IVD industry and centralized procurement of in vitro diagnostic reagents, IVD industry companies are also facing certain pressure on product prices. Can Autobio continue to stand firm and steadily improve its revenue and net profit growth in the face of "wind and rain shaking"? Worth looking forward to.

Source: https://news.yaozh.com/archive/44142.html