The company's total revenue in the first half of the year was 6.543 billion yuan, with the medical and health business achieving revenue of 3.888 billion yuan, further increasing its share of total revenue to 59.4%; achieving a net profit of 0.271 billion yuan, also increasing its share of total net profit to 21%.
Over the past three years, the Hang Seng Healthcare Index of Hong Kong stocks has experienced a significant period of adjustment, with increased market volatility. Against this background, a group of centrally state-owned listed companies led by Uni Medical, with steady performance growth and sustained high dividends, has gradually gained more attention from investors.
On August 28, 2024, Uni Medical officially released the 2024 interim performance: the company's total revenue in the first half of the year was 6.543 billion yuan, with the medical and health business achieving revenue of 3.888 billion yuan, further increasing its share of total revenue to 59.4%; achieving a net profit of 0.271 billion yuan, also increasing its share of total net profit to 21%.
According to the company's performance data, starting from September 9, the company's industry classification in the Hang Seng Index will also be adjusted to healthcare. The company stated that in the future, with the vigorous development of medical business, the proportion of revenue and profit will continue to rise.
Based on Uni Medical's development strategy of 'Focusing on medical services, supported by financial services, driven by health technology, fully leveraging the advantages of integrating production with finance, and building a shared and win-win ecosystem for the greater health', intelligent Finance and Economics APP will further analyze the company's mid-term performance from the three aspects of comprehensive medical care, specialized medical care, health technology, and financial services.
1. Comprehensive Medical Care: Centrally state-owned enterprises in healthcare, achieving stable and progressive high-quality development.
Since the issuance of the "Opinions on Promoting the High-quality Development of Public Hospitals" by the State Council Office in June 2021, public hospitals have entered a new stage of high-quality development. The focus has shifted from scale expansion to quality improvement and efficiency enhancement, from extensive management to refined management, and from emphasizing material factors to focusing more on talents and technological elements. Public hospitals are actively promoting the improvement of the quality and efficiency of medical services through the "three transformations" and "three improvements". The recently held Third Plenary Session of the 20th Central Committee of the Communist Party of China also made comprehensive and systematic arrangements for the reform of the health sector. The pace of reforms has never stopped, and the reform and high-quality development of public hospitals continue to deepen, placing higher demands on the service and management levels of medical institutions.
Currently, actively exploring new paths for the high-quality development of state-owned enterprises' medical care and promoting the high-quality development of medical institutions is a trend that Uni Medical must adapt to.
In the comprehensive medical business sector, Uni Medical continues to build core capabilities, promote digital empowerment, differentiated layout, and coordinated development, deepen the construction of a hospital group with "comfortable environment, first-class service, superb technology, and efficient operation", and create a high-quality model of state-owned enterprise medical care.
In the first half of 2024, the comprehensive medical business sector of the company is focusing on enhancing quality and efficiency, and the overall operational performance of medical institutions has steadily improved: the revenue is 3.645 billion yuan, a decrease of 2.0% compared to the same period last year; the net income is 0.243 billion yuan, an increase of 9.9% compared to the same period last year.
From an operational perspective, in the first half of 2024, Uni Medical has significantly improved the income structure of the consolidated medical institutions. Through measures such as improving diagnosis and treatment techniques, increasing treatment options, and optimizing disease structure, the overall effective medical revenue of medical institutions has increased by 3 percentage points, efficiently coping with the impact of policy adjustments such as the expansion of drug procurement scope and reforms in medical insurance payment methods.
As a centrally controlled listed company with 72 medical institutions and a main business focus on medical health, Uni Medical is dedicated to making the comprehensive medical business sector the core support and strategic resource for building the medical health industry ecosystem and meeting the health needs of the people. It aims to be the basic customer of industrial units and a collaborative innovation base for industrial innovation.
"State-owned enterprise medical care", as the "second national team" of China's public health system, plays an important role in increasing the supply of high-quality medical resources and deepening the structural reform of the supply side of medical and health services. In the future, I believe that Uni Medical will continue to leverage the advantages of state-owned enterprise medical care and group development, fully create differentiated competitive capabilities, serve the "Health China" strategy, and create greater social value.
2. Specialized medical care + health technology: dual-drive of connotation and extension, accelerating layout.
Currently, the number of specialized hospitals continues to grow. Influenced by factors such as technology, medical insurance, investment, and market demand, different types of specialized hospitals have different development patterns. In this context, the chain operation model has gradually become a major trend in the industry.
The company's specialized medical care business takes the needs and pain points of the people as the fundamental starting point of the business, adheres to the development direction of specialization, chain operation, and industrialization, and strives to build flagship hospitals. It expands business layout in specialized medical fields such as oncology, nephrology, ophthalmology, traditional Chinese medicine, and ethnic medicine. In the first half of 2024, the layout of specialized medical care has been further consolidated and improved:
Next, let's shift our focus to the rapidly growing health technology sector in the past two years. The health technology business mainly expands its business layout in the fields of full life-cycle management of medical equipment and intelligent medical and health care. It introduces cutting-edge technology and innovative methods, cultivates distinctive business and core capabilities, and strives to create the company's second growth curve. Among them, the full life-cycle management of medical equipment has achieved significant growth in the first half of the year, with a consolidated revenue of 0.264 billion yuan, an increase of 423.4%, and a net income of 0.033 billion yuan, an increase of 208.5%. According to the management's explanation at the earnings conference on August 28th, this will continue to be a rapidly growing new business sector in the future.
Recently, the Intelligent Finance App focused on UniTech Service and the Medical Industry Branch of the Chinese Society for Medical Devices announced the release of the "Standard for Maintenance and Service of Medical Magnetic Resonance Imaging (MRI) Equipment", marking the recognition of the company's technical strength and professional level in the industry. The company also stated that it will continue to leverage its corporate advantages to help the high-quality development of the medical equipment management industry through standardization.
"First-class companies set standards." First-class companies not only pursue excellence in products and services, but also strive to establish and lead industry standards, shaping market benchmarks through innovation and quality.
3. Financial business: stabilize the "basic plate" and enter a new direction of innovative transformation.
The financial business is the founding business of Uni Medical, and the company has now developed into a leading enterprise in China's financial leasing industry.
According to Uni Medical's performance materials, the company has provided customized financial solutions to more than 2,000 customers, with a cumulative investment of over 200 billion yuan, owning 2 AAA credit-rated companies, and a total credit line from financial institutions exceeding 100 billion yuan.
The company's financial business revenue in the first half of the year was 2.667 billion, a decrease of 10.7%; however, the cost side and financing management level are continuously improving, resulting in a net income of 0.981 billion yuan, a year-on-year increase of 2%, demonstrating good stability and profitability.
In fact, affected by unfavorable external factors such as the overall downturn in the industry, intensified competition, stricter regulations, and narrowing profit margins, every financial leasing institution urgently needs to consider whether to stay put or seek higher quality development and business transformation. Uni Medical has chosen the latter path. According to the management's statements at the earnings conference, the company's financial business is gradually entering a new stage of structural adjustment and transformation innovation.
In the future, the company plans to focus more on its core responsibilities, be rooted in the real economy, continuously innovate its service system, focus on technology finance, green finance, inclusive finance, retirement finance, and digital finance, highlighting the integration of industry and finance.
Uni Medical's strategic choice reflects the company's keen insight into market changes and proactive grasp of future development opportunities. Seeking change in its existing business and seizing opportunities in a shifting market, Uni Medical's financial business transformation and upgrade are highly anticipated.
Summary: Uni Medical - SOE Medical + Undervalued + High Dividend + High Stock Dividends
The management stated at the earnings conference that the company's goal is to build itself into an internationally leading and domestically first-class medical health technology enterprise with comprehensive medical care as its core, financial service capabilities, specialized medical features, and advantages in health technology.
With the continuous improvement of Uni Medical's business map of "finance + comprehensive medical care + specialized medical care + health technology", and based on its solid fundamentals, strong development resilience, and clear development path, it will continue to accumulate the growth momentum of high-quality development.
Currently, Uni Medical's Price-to-Earnings (PE) ratio is less than 4 times, Price-to-Book (PB) ratio is less than 0.5 times, and the company's dividend ratio has been maintained at 30% for many years, with a dividend yield of over 8%. It is a solid investment with low valuation, high dividends, and high dividend yield. Coupled with its deep accumulation and forward-looking strategic layout in the medical and health field, the company demonstrates strong development momentum and broad growth potential, making it a promising investment for long-term investors.
