United Orthopedic reported a strong performance for the first quarter, with a gross margin surpassing 80%, reaching 80.87%, an increase of about 3 percentage points compared to the same period last year. Net profit after tax was NT$191 million, more than double the figure from the same period last year, with earnings per share (EPS) of 1.98. Analysts stated that the better-than-expected gross margin was driven by a favorable product mix and exchange rate movements. Tariffs did not cause supply disruptions or the need for accelerated shipments, and new product shipments proceeded as planned. The company remains optimistic about achieving a 20% revenue growth target this year as it continues to expand across various markets.
United Orthopedic's first-quarter revenue reached NT$1.297 billion, a 21.7% year-on-year increase, marking the second-highest quarterly revenue on record. Revenue from Europe, the Middle East, and Africa (EMEA) increased by 34%, maintaining strong growth momentum. The region's revenue share rose from 36% to 39%, with France remaining the largest market in Europe. Analysts noted that the strong performance in high-margin key markets, coupled with an optimized product mix, contributed to the overall gross margin increase of around 3 percentage points, helping to achieve the gross margin of 80.87%.
Additionally, favorable exchange rates in the first quarter further boosted performance. Net profit after tax was NT$191 million, a 103% year-on-year increase, with EPS of 1.98.
United Orthopedic's management team is optimistic about this year's operations. In addition to France’s continued strong performance, the UK market is expected to perform notably well. Japan, which has grown by about 40% over the past two years, will see further growth through a private-label agreement with Kyocera, the fourth-largest joint implant manufacturer in Japan, for the sale of United’s bone graft products. Shipments are set to begin in May, which is expected to drive a higher growth rate in the Japanese market compared to the past two years.
Analysts pointed out that the fastest growth markets for United Orthopedic are the Americas and Japan. U.S. tariffs have not caused supply disruptions or accelerated shipments, and the original plan to start shipping new products in the second quarter remains unchanged. The collaboration with Kyocera for private-label sales in Japan will start contributing to growth. The EMEA and Taiwan markets are showing steady growth, and in China, post-centralized procurement, shipment volumes have already shown significant improvement. The company continues to be optimistic about achieving a 20% revenue growth this year.
Resource: 聯合Q1財報出爐，毛利率衝破八成，獲利翻倍EPS 1.98元
