As the domestic third-party medical imaging market shows a high growth trend, the first Chinese medical imaging service has also emerged.

On May 30th, Yixianyang was officially listed on the Hong Kong Stock Exchange. The offering price is HKD 14.60-16.80 per share, 500 shares per hand, and the offering period is from May 30th to June 4th. It is expected to be listed on June 7th and will soon become the first Chinese medical imaging service to be listed on the stock market. This not only represents the improvement of its technology and market recognition, but also a microcosm of the booming development of the domestic third-party medical imaging industry.

Yixianyang's listing is just a new starting point. From an investment perspective, with the continuous expansion of the domestic third-party medical imaging market, unprecedented growth dividends have been brought. How to accurately grasp the development trend of this market and share the benefits of its growth is a question that every investor needs to think deeply about.

Yixianyang's ability to stand out from the competition and successfully land on the Hong Kong stock market is a reflection of its advantages and strategic layout. In order to better understand Yixianyang's growth logic, we can start with the following three questions:

First, why can it become the first medical imaging company listed on the Hong Kong stock market?

Second, what is the business development and performance?

Finally, how much is the future valuation growth space?

1. The only one + providing medical imaging full industry chain services, with both leading and unique characteristics.

To sum up, the author believes that Yixianyang is able to become the first medical imaging service company listed on the Hong Kong stock market due to its leading full industry chain layout and unique business capabilities. Simply put, Yixianyang has built three core businesses including imaging center services, imaging solution services, and Yixian cloud services. These three sections work together to form a one-stop ecosystem that effectively connects all participants in medical services.

According to the company overview, thanks to its complete business layout, Frost Sullivan data shows that Yixianyang is the only one among the medical imaging platform operators and managers in China that provides comprehensive imaging services and values for the entire medical imaging industry chain and the other four major participants in China’s third-party medical imaging center market (based on patient payment fees) do not simultaneously provide imaging solution services and Yixian cloud services similar to those of Yixianyang, demonstrating its unique service capabilities.

Source: Company overview

And in many key indicators, the various titles of "the only one", "the first" and "unique" are enough to prove Yixianyang's leading position in the competition. It is reported that in 2023, the company ranked first in the number of medical imaging center outlets, equipment quantity, registered and practicing imaging physicians, daily average examination volume, and patient payment fees among all third-party medical imaging center operators in China. At the same time, calculated according to the income generated by the imaging center, Yixianyang ranks second among all third-party medical imaging centers in China.It is obvious that through a full industry chain strategic layout, Yixianyang not only establishes its leading position and unique characteristics in the domestic third-party medical imaging service market in China, but also lays a solid foundation for future development and innovation. This is the confidence that allows it to become the first medical imaging service company listed on the Hong Kong stock market.2. Strong growth momentum of business performance and accelerating value release.

Of course, the business model only provides a basic framework for the company's development. Only through actual business data can we more accurately evaluate the company's development status and value.

Other translations: It is worth noting that Yixianyang can become the first medical imaging service company listed on the Hong Kong Stock Exchange due to its leading full industry chain layout and unique business capabilities, which has both leading and unique characteristics. Simply put, Yixianyang has built three core businesses, including imaging center services, imaging solution services, and Yixian cloud services. Through these three sections, an integrated ecosystem has been formed, which effectively connects all participants in medical services. With its integrated strategy, Yixianyang is not only leading in the domestic third-party medical imaging service market, but also in a unique position. Through its complete business layout, Yixianyang is currently the only medical imaging platform operator and manager in China that provides comprehensive imaging services and values for the entire medical imaging industry chain. In the other four major participants in China’s third-party medical imaging center market (based on patient payment fees), none of them simultaneously provide imaging solution services and Yixian cloud services similar to those of Yixianyang, which demonstrates its unique service capabilities. The performance of Yixianyang’s medical imaging center has created “The first brand of imaging center in China”. In addition to the image center service, Yixianyang further consolidated its medical imaging business segment by entering a variety of business-driven medical imaging application scenarios, and established the enterprise-level application name “One-line medical network”.

It is obvious that through a full industry chain strategic layout, Yixianyang not only establishes its leading position and unique characteristics in the domestic third-party medical imaging service market in China, but also lays a solid foundation for future development and innovation. This is the confidence that allows it to become the first medical imaging service company listed on the Hong Kong stock market.

Of course, the business model only provides a basic framework for the company's development. Only through actual business data can we more accurately evaluate the company's development status and value.

From a visual perspective of data, the prospectus shows that the medical imaging network of YMYG covers 17 provinces, autonomous regions and municipalities directly under the Central Government in China, extending from first- and second-tier cities to 59 county-level administrative regions, which demonstrates the breadth and depth of the company's channel layout.

As of December 31, 2023, YMYG's medical imaging network consisted of a total of 97 imaging centers, including 9 flagship imaging centers, 24 regional shared imaging centers, 50 specialist medical alliance imaging centers and 14 operation and management imaging centers. This diverse combination of imaging centers not only meets the medical service needs of different regions and levels, but also demonstrates YMYG's constant exploration and practice in service mode innovation and the importance attached to grassroots medical services.

In terms of service capabilities, YMYG's imaging solution service has covered more than 80 medical institutions, which not only proves the company's influence in the industry, but also demonstrates its extensive recognition of services. Additionally, the company has over 220 advanced imaging equipment including PET, superconducting MRI and multi-slice spiral CT scanners, which provide strong technical and hardware support to ensure service quality and efficiency.

Moreover, as of 2023, the daily average examination volume of YMYG's operated imaging centers has reached about 20,000 times, which is the highest number in China. This not only confirms YMYG's leading position in the field of medical imaging services, but also reflects its good performance in meeting market demand and customer service efficiency.

As the most intuitive reflection of the company's business development status, YMYG's fast-growing core indicators such as revenue and gross profit in recent years have all verified the continuity of its growth momentum.

According to the prospectus, YMYG's revenue increased by 32.5% from CNY592 million in 2021 to CNY784 million, which further increased by 18.4% to CNY929 million in 2023, with a compound annual growth rate of 25.3% from 2021 to 2023. Gross profit increased by 35.3% from CNY175 million in 2021 to CNY237 million in 2022, which further increased by 40.4% to CNY333 million in 2023, with a compound annual growth rate of 37.8% from 2021 to 2023.

Source: Prospectus

It is particularly worth mentioning thatIn 2023, YMYG's adjusted net profit attributable to owners of the parent company reached CNY59.996 million, successfully achieving the transformation from loss to profit.This achievement not only proves YMYG's success in business strategy and management efficiency, but also brings tangible returns to its shareholders and investors.

In addition,Besides, YMYG's cash flow has also continued to strengthen, with an operating cash flow of as high as CNY201 million in 2023, which not only ensures the smooth daily operation of the company, but also provides a solid financial foundation for future expansion and investment.The strong cash flow not only ensures the smooth operation of the company on a daily basis, but also provides a solid financial foundation for future expansion and investment.

Source: Prospectus

3. Blue ocean market with broad prospects brings upward valuation space.

As YMYG is about to officially land on the Hong Kong Stock Exchange, exploring the company's future value growth potential inevitably requires an analysis of the development potential of the industry in which it operates.

Although the third-party medical imaging center market in our country started late and has a relatively short development time, under the joint driving force of multiple factors such as demand, policy, technology, and so on, the market has demonstrated strong growth momentum, and the expansion of its development speed and scale signifies a huge market space.

For example, the increasing aging population and residents' awareness of health have led to a continuous increase in demand for high-quality and high-efficiency medical imaging services. Secondly, a series of policies have been introduced to encourage the development of third-party medical imaging centers, especially the establishment of third-party regional sharing imaging centers in county-level administrative regions, to promote the extension of high-quality medical resources to the grassroots medical system and balance the distribution of resources. Furthermore, the relatively low per capita medical imaging equipment in China has resulted in a general lack of medical imaging equipment resources in the grass-roots medical system, which has also promoted the growth of the third-party medical imaging center market. In addition, technological innovation has also provided strong support, such as the application of artificial intelligence (AI), cloud computing and big data technology, which has improved the accuracy and efficiency of medical imaging diagnosis and provided more intelligent and personalized solutions for medical services.

Reflected in market size, according to Frost & Sullivan's estimate, the Chinese medical imaging services market is expected to reach CNY661.5 billion by 2030. Among them,The size of the Chinese third-party medical imaging center marketis expected to increase from CNY2.9 billion in 2023 to CNY18.6 billion in 2030, with a compound annual growth rate as high as 30.7%, still far from reaching the market ceiling. .

This growth rate not only shows the strong driving force of the market, but also demonstrates the key role played by third-party medical imaging centers in meeting the growing medical demand. It will continue to maintain a high growth trend in the next few years.

Source: Prospectus

It is not difficult to judge that as the market demand continues to expand, technological innovation continues to advance, and the policy environment continues to improve, YMYG, as a leading company in the third-party medical imaging center industry, is expected to achieve the strong situation of the strong in the rising market, and obtain higher valuation in the capital market while achieving business growth.

4. Conclusion.

Overall, the business model and growth path of Yimaiyangguang have gradually become clear.

Returning to the investment perspective, for general individual investors, the professionalism of medical service industries such as third-party medical imaging may be difficult to grasp and relatively complex to understand. In contrast, professional investment institutions, with their professional knowledge and information acquisition capabilities, usually can more accurately evaluate the value of the company and provide some guidance to ordinary investors.

Since 2016, Yimaiyangguang has successively received investment from many well-known investment institutions, including Goldman Sachs, Baidu, JD Health, China International Capital Corporation, China People's Insurance, and Orbis Capital, demonstrating the capital market's recognition and preference for the value of Yimaiyangguang.

Of course, the industry experience and resource network of these institutions will also provide strong support and help for Yimaiyangguang's future development, injecting more confidence and increasing the market's expectations for its performance after going public. Believe that with the support of capital, Yimaiyangguang will likely release even more potential as it successfully enters the Hong Kong stock market.