Pacific Securities has reiterated its "Buy" rating on UNI MEDICAL (02666), projecting the company's revenue for 2025-2027 to reach RMB 14.723 billion, RMB 15.343 billion, and RMB 16.254 billion, respectively. Net profit attributable to shareholders is expected to be RMB 2.118 billion, RMB 2.228 billion, and RMB 2.366 billion, with EPS of RMB 1.12, RMB 1.18, and RMB 1.25. Based on the closing price on October 29, the corresponding PE ratios stand at 4.99x, 4.75x, and 4.47x. The firm remains optimistic about the valuation uplift driven by the rapid growth of UNI MEDICAL's healthcare business, assigning a 2025 PE multiple of 6.5x and a target price of HK$7.97.
The healthcare segment has emerged as the core growth driver, while the financial business maintains stability with notable risk control achievements. The synergy between these two sectors continues to reinforce the company's value.
**Key Financial Highlights from H1 2025 Report:** - Revenue: RMB 7.581 billion (+15.9% YoY) - Net profit: RMB 1.335 billion (+6.6% YoY) - Net profit attributable to ordinary shareholders: RMB 1.228 billion (+8.0% YoY)
**Pacific Securities' Key Observations:** 1. **Steady Growth in Operational Performance** - Basic EPS: RMB 0.65 (+8.0% YoY) - ROE: 14.08%; ROA: 3.11% - Healthcare business revenue: RMB 4.964 billion (+27.7% YoY), accounting for 65.5% of total revenue. The health tech sub-segment surged 142.1%, becoming the most promising growth area. - Financial business revenue: RMB 2.851 billion (+6.9% YoY), contributing 37.6% of total revenue.
2. **Strong Asset Quality in Financial Business** - Interest-earning assets: RMB 70.605 billion - Non-performing loan ratio: 0.97% - Provision coverage ratio: 313.87%, reflecting robust risk resilience.
3. **Healthcare Business: Multi-Sector Synergy Drives Growth** - **Integrated Healthcare:** Operates 65 consolidated hospitals (including 5 top-tier hospitals) with over 16,000 beds. Outpatient visits reached 5.09 million (+2.8% YoY). Despite a 14.6% YoY decline in segment profit to RMB 231 million due to healthcare payment reforms and new infrastructure investments, the company optimized costs and improved operational efficiency. - **Specialty Healthcare:** Acquired Shandong University of Traditional Chinese Medicine Affiliated Eye Hospital in H1 2025, while expanding rehabilitation and oncology services. - **Health Tech:** Revenue surged 142.1% YoY to RMB 646 million, with equipment lifecycle management services covering 1,600+ institutions (managing RMB 37 billion in assets). Smart healthcare solutions now serve 182 districts and counties, with 4,958 elderly care clients.
4. **Financial Business: Focused on Medical Scenarios with Strong Risk Control** - Core medical financing leasing revenue: RMB 2.851 billion (+6.9% YoY). - The company prioritized funding for medical equipment upgrades and health tech projects while introducing an innovative "leasing + lifecycle management" service model to enhance client engagement. - Risk metrics improved, with NPL ratio down 2bps YoY to 0.97%, provision coverage up 12.01 ppts to 313.87%, and average interest-bearing liability cost declining 44bps to 3.40%.
**Risk Factors:** - Slower-than-expected macroeconomic recovery - Intensified industry competition - Significant deterioration in asset quality
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