United Imaging Intelligence (联影智能, UII), a subsidiary of United Imaging Group ( 联 影 集 团 , 24.1% of shareholding), delivers various medical AI solutions to empowers diagnosis, research and equipment. United Imaging (联影医疗) and UII have established in-depth collaboration in intelligent equipment, with AI applications fully adopted across United Imaging’s entire product lines. We believe that leveraging intra-group synergies, United Imaging is transitioning from a traditional equipment manufacturer to an intelligent imaging solution provider through AI technology. Its leading advantage in “Equipment + AI” will further consolidate the Company's industry leading position and build a stronger competitive barrier in the high-end market.

Full-stack and full-spectrum AI solutions, empowering medical scenarios from multiple dimensions. UII’s full-stack and full-spectrum medical imaging AI spans the entire clinical workflow, from imaging to therapy and covering diverse modalities including XR, CT, MR, and MI, etc. UII’s main businesses include three segments: 1) Clinical Empowerment (~60-70% of business by revenue): Leveraging AI to assist clinicians in diagnosis, primarily deployed in radiology departments. As of the end of 2024, UII has launched over 100 medical AI products and obtained 12 NMPA Class III certificates, 21 NMPA Class II certificates, 13 CE certifications, and 15 FDA certifications. 2) Research Empowerment (~20%): Supporting physicians in research. 3) Equipment Empowerment (~10%): Collaborating with United Imaging to enable intelligent upgrades and performance enhancements of medical devices.

Synergistic innovation of hardware and software to build competitive edge of “Equipment + AI”. United Imaging and UII, sister companies of United Imaging Group, have established a unique hardware-software synergistic innovation advantage. For instance, UII embeds AI algorithms directly into United Imaging’s equipment, enabling intelligent patient positioning, scan parameter optimization, and accelerated image reconstruction-all enhancing imaging efficiency and quality. We believe that AI will enhance the competitiveness and premium capability of equipment. Thus, medical AI applications will partly drive the growth of the equipment market. Currently, AI applications have been fully adopted across United Imaging’s entire product lines. With the strategic collaboration with UII, United Imaging has forged a competitive edge of “Equipment + AI”. Amid policy-driven equipment renewals and increasing AI adoption in clinical practice, we expect United Imaging to sustainably benefit from industry tailwinds and achieve solid growth.

Maintain BUY. We are optimistic about United Imaging’s integrated competitiveness in the synergistic development of AI-empowered medical equipment. With the ongoing recovery in equipment procurement activities, we expect the Company to demonstrate gradually strong earnings recovery in 2025E. Based on a 9-year DCF model, we adjust the target price to RMB 168.08 (WACC: 9.0%, terminal growth rate: 4.1%).