Recently, Jiangxi Yimai Sunshine Group Co., Ltd. (hereinafter: Yimai Sunshine) opened a stock offering and is expected to be listed on the main board of the Hong Kong Stock Exchange on June 7. This marks that the company will become the first listed company in the field of medical imaging specialist medical services in China.

Since its establishment in 2014, Yimai Sunshine has thrived into a veritable leading enterprise on the third-party medical imaging specialist medical service circuit.

According to the prospectus, in terms of the number of medical imaging center outlets, number of registered radiologists registered as their main workplace, average daily examination volume, and fees paid by patients, in 2023, Yimai Sunshine ranked first among all third-party medical imaging center operators in China.

Zhitong Finance App understands that as the only medical imaging platform operator and manager in China that provides diversified imaging services and values for the entire medical imaging industry chain, Yimai Sunshine's three major businesses (imaging center services, imaging solution services, and Yimai cloud services) complement each other and have formed a one-stop network ecosystem.

The Zhitong Finance App believes that Yimei Sunshine has accumulated pioneering strength in many areas to create “the first stock of medical imaging services in China.”

First, in terms of business development, there is a combination of sunshine, “soft and hard.” In terms of hardware equipment, the company continued to introduce advanced international medical imaging equipment, which not only improved the hardware level of primary medical institutions, but also provided strong support for technological innovation in the medical imaging industry. In terms of software services, Yimai Sunshine actively explores digital and intelligent development paths, and uses technical means such as big data and artificial intelligence to optimize image processing processes and improve diagnosis accuracy.

Furthermore, Yimai Sunshine continues to develop and operate throughout the country, making it capable of formulating standards relating to the construction, operation and management of imaging centers, capability evaluation, and informatization, and actively participating in the formulation and promotion of many standards in the medical imaging service industry.

Second, in terms of operation, Yimai Sunshine adheres to the concept of “clinical imaging service”, changes the current state of disconnection between clinical and imaging by leveraging the role and value of medical imaging in the field of modern medicine, and provides high-quality diagnostic services through standardized scanning specifications and a full-process quality control system.

With an efficient and standardized development and operation management model, Yimai Sunshine has achieved the scale advantage of operating imaging centers and has established a leading position in the third-party medical imaging center industry in China. For example, the company has established a mature imaging center development system and SOP operation system to promote rapid expansion of its business combining quality and quantity. Through its own imaging center and the provision of operation and management services to other medical institutions, Yibai Sunshine continues to accumulate and develop solid medical imaging service capabilities. According to the prospectus, most regional shared imaging centers are expected to record their first positive monthly net profit in the first year after opening, reaching a break-even point.

From 2021 to 2023, the number of medical imaging centers the company has put into operation increased from 78 to 97, with a CAGR of 11.5%. Imaging center service revenue increased from 442 million yuan in 2021 to 638 million yuan in 2023, with a compound annual growth rate of 20.1%.

It is based on deep exploration of the business model and scale operation moat that has enabled Yimai to gradually establish a significant competitive advantage.

The double increase in business capacity and scale expansion is reflected in financial reports, which is a remarkable increase in both revenue and gross profit.

From 2021 to 2023, the company's revenue was 592 million yuan, 784 million yuan and 929 million yuan respectively. The three-year compound annual growth rate was 25.3%, showing strong revenue growth; gross profit for the same period was 175 million yuan, 237 million yuan and 333 million yuan respectively, with a three-year compound annual growth rate of 37.8%, which is even more significant. It is worth noting that in 2023, Yimai Sunshine's adjusted net profit was 59.996 million yuan, making a profit for the first time. Obviously, the company has achieved continuous improvement in hematopoietic capacity and profitability, and has taken the lead in entering a new stage of development.

In addition to its scale effect and rich technical heritage, it is also inextricably linked to the rapid growth of the Chinese third-party medical imaging circuit where it is located, which can support the successful crowning of the “China Medical Imaging Service No. 1” crown.

According to Frost & Sullivan, in terms of revenue, the market size of China's third-party medical imaging centers is expected to reach RMB 18.6 billion by 2030, with a compound annual growth rate of 30.7% from 2023 to 2030. As can be seen, China's third-party medical imaging circuit is growing at an accelerated pace and maturing, and is welcoming faster development with the encouragement of growing demand and favorable policies in the medical service market. As a leader, Yimei Sunshine will surely be a beneficiary of the rapid development of the industry.

It's easy to see that Yimai Sunshine continues to focus on business innovation, technological innovation, and large-scale operation. Coupled with the rapid growth of China's third-party medical imaging circuit, it is a matter of course to become “China's first medical imaging service.” However, the first correction in adjusted profit in 2023 proved to the market that Yimei Sunshine has proven its commercial value and monetization efficiency. The improvement in its main operating indicators will enhance the company's intrinsic value. Coupled with the scarcity of “first shares,” it is expected that it will be favored by the capital market.