Universal Medical (2666.HK): Leading Integrated Healthcare Solution Provider in PRC November 7, 2017

Investment Summary

  • Fast growth of core finance lease business;
  • Bright outlook of hospital operation business;
  • Unique SOE background with outstanding medical resources.

Business Overview

Universal Medical is a leading integrated healthcare solution provider in Mainland China. The company reported revenue of RMB2,700mn/1,653mn in 16/1H17 (+23%/32% YoY), and net profit of RMB872mn/578mn (+32.5%/48.6%). Its service mix comprises three parts: (1) medical equipment financing which constitutes the principal component (72% in 1H17); (2) healthcare industry, equipment and financing advisory services (21%); (3) clinical department upgrade services (5%). Leveraging on the central SOE background, strong medical resources platform and efficient management team, the company develops very quickly with 2012-2016 revenue/net profit CAGR of 46%/48.9%.

About the author

Profile photo of Eurus Zhou

Eurus Zhou
Phillip Securities (HK)

Graduated from Hong Kong Polytechnic University, Master of Finance (Investment Management). Possess bachelor degree majoring in Financial Management from Southwestern University of Finance and Economics. Focus on industry prospect and corporate fundamentals to explore investment value and cover pharmaceutical and consumer industry.

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