Guotai Haitong: The 25-year equipment renewal policy is implemented on schedule. The scale of medical equipment procurement has grown rapidly year-on-year. The "buy" rating is maintained.

Guotai Haitong released a research report stating that the 25-year equipment renewal policy was implemented as scheduled, and the annual scale of medical equipment procurement grew rapidly year-on-year. According to Zhongcheng Shuke data, in terms of month-on-month comparison, in December 2025, the scale of new equipment bidding and tendering decreased by 11.8% for MR, 7.3% for CT, 3.9% for DR, 1.3% for ultrasound, increased by 1.4% for endoscope, and decreased by 23.9% for surgical Siasun Robot & Automation. Maintaining a "buy" rating. Recommended medical equipment companies that are expected to benefit from the implementation of the equipment renewal policy driving performance recovery. Guotai Haitong's main points are as follows: The 25-year equipment renewal policy was implemented as scheduled, and the scale of medical equipment procurement grew rapidly year-on-year. According to Zhongcheng Shuke data, in terms of month-on-month comparison, in December 2025, the scale of new equipment bidding and tendering decreased by 11.8% for MR, 7.3% for CT, 3.9% for DR, 1.3% for ultrasound, increased by 1.4% for endoscope, and decreased by 23.9% for surgical Siasun Robot & Automation. Looking at the year-on-year comparison for the entire year of 2025, in December, the scale of new equipment bidding and tendering increased by 31.4% for MR, 53.2% for CT, 53.2% for DR, 42.3% for ultrasound, 16.3% for endoscope, and 21.9% for surgical Siasun Robot & Automation. Looking at the month-on-month comparison of subsidiaries, in December 2025, United Imaging MR decreased by 17.4%, United Imaging CT increased by 17.4%, Mindray ultrasound increased by 13.8%, GE ultrasound decreased by 13.5%, GE endoscope increased by 61.1%, and Olympus endoscope increased by 9.4%. Looking at the year-on-year comparison of subsidiaries, for the entire year of 2025, United Imaging MR increased by 15.6%, United Imaging CT increased by 47.7%, Mindray ultrasound increased by 56.3%, GE ultrasound increased by 69.7%, GE endoscope increased by 85.0%, and Olympus endoscope increased by 24.4%. The continuous implementation of the equipment renewal policy is expected to drive the medical equipment procurement level in the long term. In 2024, four ministries jointly issued the "Notice on Promoting the Implementation Plan for Equipment Update in the Field of Medical and Health Care", clearly stating the goal of increasing the investment in medical and health care equipment by more than 25% compared to 2023 by 2027 and improving the configuration of high-end equipment to the level of middle- to high-income countries. At the same time, in 2024, various provinces and cities across the country have issued large-scale procurement plans for domestic medical equipment renewal projects. Since 2025, the large-scale equipment updates promoted by the country have gradually become normalized and specialized, significantly increasing the purchasing enthusiasm of various levels of medical institutions and quickly releasing the demand for innovative diagnostic and therapeutic equipment updates such as imaging and radiotherapy. Policy-driven domestic market effectively recovers, equipment companies usher in a turning point in performance. With the continuous increase in support from domestic macroeconomic policies for people's livelihood and technological innovation, the gradual implementation of the medical equipment renewal policy has released more abundant procurement demand for domestic medical institutions. With the gradual implementation of policies and the recovery of medical demand, the Chinese market is showing a stable and positive development trend. In the first three quarters of 2025, Shanghai United Imaging Healthcare achieved a revenue of 6.866 billion RMB in the domestic market, a year-on-year increase of 23.70%, fully reflecting the trend of the recovery and structural upgrade of the domestic medical equipment industry. Risk warning: Equipment procurement recovery is lower than expected, policy implementation is lower than expected, and risks related to fluctuation in product prices, etc.