Strong recovery in Q3

PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE MORE REPORTS FROM BLOOMBERG: RESP CMBR <GO> OR http://www.cmbi.com.hk 1 MN 31 Oct 2025 CMB International Global Markets | Equity Research | Company Update United Imaging (688271 CH) United Imaging (688271 CH) - Strong recovery in Q3 Strong recovery in Q3 United Imaging (UIH) reported strong 9M25 results, with revenue of RMB8.9bn (+27% YoY), reaching 69% of our prior full-year estimate and exceeding the historical average of ~65%. The sharp 75% YoY revenue growth in 3Q25 was driven by a significant recovery in domestic equipment procurement, sustained overseas growth momentum, and a low base in 3Q24. Domestic demand remained solid, with the value of medical imaging tenders up by 55% YoY in 3Q25, according to Joinchain. Overseas growth was supported by strong order intake and improved order-to-revenue conversion. Therefore, we raise our 2025E revenue forecast to RMB13.3bn, implying 28.8% YoY growth.  Robust performance of high-end portfolios. UIH’s domestic revenue grew 24% YoY to RMB6.9bn in 9M25, driven by procurement recovery and market share gain of over 4ppts. High-end products remained a key growth driver. 1) MR revenue grew 40% YoY, with notable share gains in 5T (+ ~52ppts) and 3T (+over 4ppts). 2) CT revenue increased 8% YoY with high-end CT up ~30% YoY. We expect photon-counting CT uCT Ultima and uCT Siriux to further strengthen UIH’s position in the high-end CT market. 3) MI revenue rose 22% YoY with PET/CT maintaining its decade-long leading position in China. uMI Panorama has contributed ~40% of MI revenue. 4) XR and RT both delivered double-digit growth with continued share gains. The increasing revenue contribution from mid- to high-end products is expected to offset margin pressures from lower-end portfolios. Moreover, the upcoming launch of a comprehensive ultrasound portfolio in Nov 2025 should further support UIH’s “diagnosis-to-treatment” strategy and high-end imaging leadership, in our view.  Overseas business maintained strong momentum. Overseas revenue rose 42% to RMB2.0bn, representing 22.5% (+2.3ppts) of total revenue in 9M25. Revenue in North America grew by over 50% YoY to ~RMB700mn in 9M, with US service revenue up 80%+ YoY on the back of an expanding installed base. A diversified supply chain and proactive inventory management helped mitigate tariff pressure, while recurring service revenue may enhance long-term resilience. European revenue more than doubled YoY to over RMB400mn in 9M. Notably, uMI Panorama GS and uMI Panvivo have penetrated into the high-end market in Western Europe. Asia-Pacific and emerging markets also delivered double-digit growth. Management indicated robust overseas order intake. With stronger sales conversion from orders, we expect overseas growth to remain solid in 4Q25E.  Maintain BUY. Considering the rapid domestic recovery in 2025E and strong overseas growth momentum, we raise our forecasts of 2025