Core Viewpoint - Samsung Medical (601567) is focusing on the development of high-quality rehabilitation specialty chains, emphasizing critical rehabilitation, neurological rehabilitation, and functional rehabilitation, with a foundation in elderly rehabilitation [1] Group 1: Company Strategy - The company has been deeply involved in the medical services sector for many years, focusing on the construction, operation, and investment mergers and acquisitions of physical medical institutions [1] - Samsung Medical is continuously expanding its presence in key regions such as the Yangtze River Delta and the Pearl River Delta [1] Group 2: Operational Highlights - As of now, the company operates a total of 38 hospitals, including 32 rehabilitation hospitals [1] - The total number of beds across these hospitals has exceeded 10,000 [1]

Core Viewpoint - The company, Samsung Medical, is primarily focused on its smart power distribution business, which has accounted for over 75% of its revenue in recent years, raising questions about its alignment with its name and potential plans for enhancing its medical services business [1] Group 1: Business Focus - Samsung Medical has been deeply involved in the medical services sector for many years, focusing on the construction, operation, and investment in physical medical institutions [1] - The company is actively developing high-quality rehabilitation specialty chains, emphasizing critical rehabilitation, neurological rehabilitation, and functional rehabilitation, with a foundation in elderly rehabilitation [1] Group 2: Operational Scale - As of now, the company operates 38 hospitals, including 32 rehabilitation hospitals, with a total bed capacity exceeding 10,000 [1] Group 3: Future Plans - The company expressed gratitude for investor suggestions and indicated that if there are plans for further asset integration or acquisitions to enhance the revenue and profit contribution from its medical services, it will comply with relevant laws and regulations for timely information disclosure [1]

Investment Rating - The report maintains a strong buy rating for several key companies in the power equipment sector, including Guodian Nanrui, Siyuan Electric, and TBEA, while recommending an increase in holdings for others like Sifang Co. and China XD Electric [2][3]. Core Insights - The State Grid's planned investment of 4 trillion yuan during the 14th Five-Year Plan period represents a 40% increase compared to the previous plan, with an expected compound annual growth rate (CAGR) of 7% [1][9]. - The focus of this investment will be on green transformation, ultra-high voltage, distribution networks, energy storage, and digitalization, which is expected to significantly support the performance of related companies [1][9]. - The report highlights the increasing pressure on power consumption and the need for a new power system, emphasizing ultra-high voltage and energy storage as critical solutions to address this challenge [1][13][21]. Industry Overview - The total number of listed companies in the power equipment sector is 308, with a total market capitalization of 7,728.9 billion yuan [3]. - The absolute performance of the power equipment and new energy sector has shown significant growth, with a 63.1% increase over 12 months [5]. Key Company Analysis - Guodian Nanrui is recognized as a leader in secondary equipment with strong technology barriers and stable operations, expected to see significant growth in high-voltage and system stability businesses [26]. - Siyuan Electric has established a comprehensive product system and service network in overseas markets, with a notable increase in overseas revenue [26]. - China XD Electric benefits from increased capital expenditure in domestic main networks and ultra-high voltage projects, with a growing presence in international markets [27]. - TBEA is experiencing rapid growth in orders, particularly in the Middle East and Europe, and is expected to benefit from ongoing power construction projects [28]. - Other notable companies include XJ Electric, Pinggao Electric, and Igor, each with unique strengths and growth prospects in the evolving power equipment landscape [29][30][31].

Key Points Summary Industry Overview - The report focuses on the power equipment sector, specifically highlighting the recovery in domestic and international demand for electric meters and the significant contributions from distribution and renewable energy sectors [1][2]. Core Insights and Arguments 1. **Valuation Concerns**: - Current low valuation levels are attributed to concerns over the cyclical nature of electric meters and the absence of AIDC product labels, leading to reliance on traditional business valuations [1]. 2. **Business Development Outlook for 2026/2027**: - The domestic electric meter market experienced its lowest point in five years in 2025, with only 50 million units sold and prices dropping approximately 20% compared to 2024. A significant recovery is expected in 2026, with a projected 20%+ increase in volume and a 30%+ increase in new meter prices [1]. 3. **International Demand Recovery**: - Demand in Southeast Asia and Europe for electric meters is anticipated to gradually recover [2]. Distribution Sector Insights 1. **New Orders and Growth**: - Samsung's new domestic distribution orders in 2025 increased by nearly 20%, demonstrating resilience. The company is expected to see a doubling of overseas distribution orders, with the overseas share projected to rise from over 10% to 20-30% [3]. 2. **Haixing's Performance**: - Haixing achieved a breakthrough in overseas distribution, renewable energy, and water meter businesses in 2025, with new business revenue exceeding 300 million, doubling year-on-year and accounting for 15-16% of total revenue. The company anticipates further doubling of overseas new business revenue in 2026, increasing its revenue share to over 20% [3]. Investment Recommendations - Both Samsung and Haixing are positioned well due to their extensive overseas factory layouts (Haixing with 9 factories and Samsung with 6) and superior overseas channel capabilities compared to other domestic companies. This positions them for long-term growth through regional expansion, market share increase, and product diversification [3]. - Profit projections for 2026 are 2.5 billion for Samsung (target market cap of 50 billion at 20X) and 1.2 billion for Haixing (target market cap of 24 billion at 20X, with 70% of profits from overseas) [3].

Core Viewpoint - Samsung Medical (601567) has shown a positive stock performance, with a closing price of 24.95 yuan on January 16, 2026, reflecting a 2.04% increase from the previous week [1] Company Announcements - Samsung Medical provided a performance guarantee for its wholly-owned subsidiary, Brazil Nansen, amounting to approximately 44.07 million yuan, with the guarantee period extended to January 30, 2027 [1] - The guarantee for Brazil Nansen is 33.90 million Brazilian Reais (approximately 44.07 million yuan) and has been approved by the board and shareholders, falling within the previously estimated guarantee limit [1] - Brazil Nansen has a debt-to-asset ratio of 112.50%, and Samsung Medical has actual control over it, indicating that the guarantee risk is manageable [1] - As of the announcement date, the total external guarantees provided by the company amount to 975.35 million yuan, which represents 80.73% of the most recent audited net assets, with no overdue guarantees reported [1]

Core Viewpoint - Samsung Medical indicated that detailed order information for 2025 will be disclosed in future periodic reports, highlighting the company's commitment to transparency and investor communication [1] Group 1: Business Operations - Copper, a key raw material for the company's distribution products, is subject to market price fluctuations, prompting the company to engage in hedging activities authorized by the board to mitigate risks [1] - The company is focused on enhancing operational efficiency through ongoing digital transformation and refined management practices, aiming to achieve cost reduction and efficiency improvement goals [1]

Group 1 - The company has two production bases in Europe located in Poland and Germany [1] - A new sales company in Hungary is expected to be established in the first half of 2025 [1] - The company's sales strategy in Europe includes direct exports to European customers and sales through subsidiaries established in Europe [1]

Core Viewpoint - Samsung Medical is committed to advancing its digital transformation strategy to enhance patient experience and medical quality [1] Group 1: Digital Transformation Strategy - The company is focusing on building an integrated patient service mini-program based on systems such as "case quality control system," "rehabilitation treatment system," "clinical pathway system," and "internet medical services" [1] - The aim is to promote intelligent upgrades of in-hospital diagnosis and treatment services and the informatization of grade evaluation [1] Group 2: Goals and Vision - Samsung Medical seeks to comprehensively construct a new ecosystem of smart, efficient, and safe medical services [1]

Group 1 - The core stock price of Samsung Medical (601567) closed at 24.75 yuan on January 15, 2026, with an increase of 1.02% and a turnover rate of 1.27% [1] - The trading volume was 178,300 shares, with a total transaction amount of 439 million yuan [1] - On January 15, the main funds had a net outflow of 9.54 million yuan, accounting for 2.17% of the total transaction amount [2] Group 2 - Samsung Medical provided a performance guarantee for its wholly-owned subsidiary, Brazil Nansen, with a guarantee amount of approximately 44.07 million yuan, and the guarantee period has been extended to January 30, 2027 [1][2] - The guarantee has been approved by the board of directors and shareholders, and it falls within the previously estimated guarantee limit [1] - As of the announcement date, the total external guarantees of the company amounted to 975.35 million yuan, which is 80.73% of the most recent audited net assets, with no overdue guarantees [1]

Core Viewpoint - Samsung Medical (601567) experienced a decline in stock price, closing at 24.5 yuan on January 14, 2026, with a trading volume of 306,300 hands and a total transaction amount of 760 million yuan [1] Group 1: Financial Performance - For the first three quarters of 2025, Samsung Medical reported a main revenue of 11.08 billion yuan, an increase of 6.19% year-on-year [3] - The net profit attributable to shareholders was 1.528 billion yuan, a decrease of 15.85% year-on-year [3] - The net profit after deducting non-recurring items was 1.28 billion yuan, down 26.81% year-on-year [3] - In Q3 2025, the company’s single-quarter main revenue was 3.108 billion yuan, a decline of 9.56% year-on-year [3] - The single-quarter net profit attributable to shareholders was 298 million yuan, a decrease of 55.22% year-on-year [3] - The single-quarter net profit after deducting non-recurring items was 144 million yuan, down 78.54% year-on-year [3] - The company’s debt ratio stood at 47.57%, with investment income of 179 million yuan and financial expenses of -109 million yuan [3] - The gross profit margin was reported at 28.46% [3] Group 2: Market Activity - On January 14, 2026, the net outflow of main funds was 1.4346 million yuan, accounting for 0.19% of the total transaction amount [1] - Retail investors saw a net inflow of 22.827 million yuan, representing 3.01% of the total transaction amount [1] - Over the past five days, the financing buy amounted to 82.3109 million yuan, while financing repayment was 76.1522 million yuan, resulting in a net financing increase of 6.1587 million yuan [2] - The total financing and securities balance was reported at 383 million yuan [2] Group 3: Analyst Ratings - In the last 90 days, six institutions have given buy ratings for Samsung Medical, with an average target price of 30.16 yuan [4]