<p>In December last year, Singapore welcomed its first tech unicorn company in years, which was highly sought after post-IPO, rising nearly 30% above its offering price at one point. However, under the dual impact of recent performance and the Iran war, it has been sold off in the past month, giving back almost all its gains.</p>
<p>The medical technology company UltraGreen.ai, which received investment from Temasek, also had the largest non-real estate initial public offering in eight years. As of Friday (March 27), it was up only 1.3% from its offering price.</p>
<p>Is it due to business performance falling short of expectations, or did it just happen to coincide with unfavorable macro market factors? Lianhe Zaobao asked analysts for their insights.</p>
<p>For ordinary investors, UltraGreen.ai's business may be relatively unfamiliar, but its business model and growth prospects have caught the attention of several brokerage firms.</p>
<p>The company uses artificial intelligence (AI) technology to provide fluorescence technology for medical and surgical imaging. Simply put, its products help doctors &#34;see more clearly&#34; during surgeries.</p>
<p><img src="https://imageproxy.pbkrs.com/https://dss0.zbstatic5.com/s3fs-public/articles/2026/03/29/2703caijingultragreendigital002-01_0.jpg/query-MTAyNw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://dss0.zbstatic5.com/s3fs-public/articles/2026/03/29/2703caijingultragreendigital002-01_0.jpg/query-MTAyNw"/></p>
<h3>The company's main product is a medical dye</h3>
<p>Its main product is a medical dye called Indocyanine Green. During surgery, this dye is injected into the body and illuminated with near-infrared equipment, allowing blood vessels, tissues, and even tumor boundaries to be clearly displayed on the screen, thereby improving surgical precision.</p>
<p>This fluorescence-guided surgery has been applied in various surgeries, including cancer, gastrointestinal, cardiovascular, and plastic surgeries.</p>
<p>Zhao Junwu, a director at the investment platform Tickrs, pointed out that this technology has become an important auxiliary tool in modern surgery, and Indocyanine Green is currently one of the most widely used fluorescent agents, with UltraGreen.ai holding a dominant position in this niche market.</p>
<h3>The company's global market share exceeds 60%</h3>
<p>In the fiscal year 2024, based on the number of bottles sold, UltraGreen.ai's market share in the global Indocyanine Green market is approximately 68%, with a revenue-based market share of 63%. These two market shares are 6.8 times and 2.6 times that of the second-largest player in the market, respectively.</p>
<p><img src="https://imageproxy.pbkrs.com/https://dss0.zbstatic5.com/s3fs-public/articles/2026/03/29/2703caijingultragreendigital001-01_0.jpg/query-MTAyNw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://dss0.zbstatic5.com/s3fs-public/articles/2026/03/29/2703caijingultragreendigital001-01_0.jpg/query-MTAyNw"/></p>
<p>Beansprout analyst Huang Huijun pointed out that the company has achieved a leading position in this field due to over 10 years of investment in regulatory approvals, quality systems, clinical collaborations, and global distribution capabilities
The company currently has one of the most extensive regulatory layouts in the field of fluorescent imaging agents, with its indocyanine green products registered in 35 countries and sold in another 33 markets through exemption pathways, operating in a total of 68 markets across the Americas, Europe, the Middle East and Africa, and the Asia-Pacific region.</p>
<h3>90% of the company's revenue comes from indocyanine green products</h3>
<p>Unlike one-time equipment sales, the revenue of YouChuang KangZhi mainly comes from indocyanine green, which is a type of surgical consumable used in every fluorescence-guided surgery.</p>
<p>Huang Huishun stated that over 90% of the company's revenue comes from indocyanine green-related products, which belong to a recurring revenue model. This business model provides stable income and strong cash flow, while not relying on large equipment purchases by hospitals.</p>
<p>Compared to the overall cost of surgery, the cost of indocyanine green is relatively low. DBS Group analyst Chen Kaihui mentioned that this means its demand is price insensitive.</p>
<p>Daiwa Capital Markets analyst Zhong Mingcheng pointed out that YouChuang KangZhi's gross margin is about 85%, and its net margin is close to 50%, reflecting its pricing power and scale advantages in the market.</p>
<h3>The industry is still in its early stages, with increased penetration being the main growth driver</h3>
<p>Fluorescence-guided surgery has significantly improved surgical outcomes, such as reducing complications in breast reconstruction surgeries by 51%. However, the global penetration rate of such surgeries remains low, with usage in the U.S. below 25% and even lower in regions like Asia.</p>
<p>Zhong Mingcheng believes that with increased training for doctors, wider equipment availability, and accumulation of clinical evidence, this technology is expected to gradually become part of standard surgical procedures, driving demand for indocyanine green.</p>
<p>However, analysts remind that the company's advantages come from compliance barriers, first-mover scale, and customer habits, rather than patents. Once a large pharmaceutical company decides to enter this market, the competitive landscape may change in the medium to long term.</p>
<h3>The company's raw materials come from only one supplier</h3>
<p>Additionally, the company's raw materials currently come mainly from one supplier, which poses a concentration risk. The company is promoting a second source for commercial use, but it is still under approval.</p>
<h4>Further Reading</h4>
<p>Temasek's two companies will manage the second tranche of the joint investment fund of 1.5 billion

 Singapore Exchange adjusts Next 50 index constituents, YouChuang KangZhi and three other companies make the list


In addition, YouChuang KangZhi is developing a data platform that provides doctors with more accurate blood flow and tissue assessments by analyzing surgical images.</p>
<p>Zhong Mingcheng pointed out that this artificial intelligence (AI) platform is expected to enhance the standardization of doctors' decision-making and increase customer stickiness, becoming an important growth driver for the company in the future.</p>
<p>However, this is still in the development stage, and its contribution to profits in the short term is limited.</p>
<h3>Steady Performance Growth but Expansion May Compress Short-Term Profits</h3>
<p>From a financial performance perspective, the company's revenue is expected to grow by 24% in the fiscal year 2025, reaching $142.4 million (SGD 182.78 million), with net profit increasing by 35% to $75.6 million.</p>
<p>Chen Kaihui pointed out that revenue growth mainly comes from the increased usage and price of indocyanine green, while the expansion into overseas markets brings faster growth.</p>
<p>The company's management expects revenue to grow to between $170 million and $190 million in 2026. However, as the company increases its investment in platform and market expansion, short-term profit margins may be affected.</p>
<p>Multiple brokerages have given YouChuang KangZhi a &#34;Buy&#34; rating, with target prices ranging from $2 to $2.1.</p>
<h3>Dual Impact of Performance and Macroeconomic Situation</h3>
<p>Although the stock showed strong performance at the beginning of the year, its price began to decline after the earnings announcement at the end of February.</p>
<p>Zhao Junwu stated in an interview with Lianhe Zaobao: &#34;The weakening of the stock price is due to a combination of macroeconomic concerns and the company's own performance reactions, with macro headwinds amplifying disappointment at the micro level.&#34;</p>
<p>On the macro front, during periods of heightened geopolitical uncertainty, the market typically enters a risk-averse mode, with investors tending to avoid newly listed stocks that are overvalued.</p>
<p>Such conflicts can also lead to a flow of funds into safe-haven assets, driving the dollar stronger.</p>
<h3>Nearly $9 million Foreign Exchange Loss in Fiscal Year 2025</h3>
<p>This directly impacts YouChuang KangZhi's fundamentals, as its European subsidiary is denominated in euros. The company has incurred a foreign exchange loss of $6.8 million (approximately SGD 8.79 million) in fiscal year 2025 due to fluctuations in the euro to dollar exchange rate, with macro tensions drawing attention to this specific operational weakness.</p>
<p>Despite the company achieving strong revenue growth, Zhao Junwu stated that the market has already assigned a &#34;perfect pricing&#34; after the IPO.</p>
<p>The market is more focused on profitability metrics, with the core net profit margin, excluding one-off projects, contracting by four percentage points to 44.8%. Additionally, the company set aside a one-time tax provision of $8.5 million for foreign-sourced dividend income, which surprised the market and confirmed previous concerns about rising effective tax rates.</p>
<p>However, he still reiterated the &#34;Buy&#34; rating, as &#34;the clinical demand corresponding to fluorescent-guided surgical products continues to show high resilience to geopolitical shocks.&#34;</p>
<h3>Analysis: Medical Surgical Innovations Exhibit Counter-Cyclical Resilience</h3>
<p>YouChuang KangZhi holds a monopoly position in the indigo market, with a gross margin exceeding 80% and revenue growth ranging from high double digits to low 30%. Even in the face of uncertainties from new listings, rising tax rates, and platform execution risks, this is sufficient to support a valuation premium.</p>
<p>After the earnings announcement, Chen Kaihui lowered the profit forecasts for the fiscal years 2026 and 2027 by about 3%, reflecting the cost increases brought about by a growing workforce and investments in other growth areas, as well as the impact of overall weak market performance.</p>
<p>Huang Huijun told Lianhe Zaobao that from a valuation perspective, the stock's forward price-to-earnings ratio is roughly in line with its peers, and whether it can be maintained depends on the company's ability to execute and deliver on growth expectations. However, against the backdrop of geopolitical uncertainty, the demand for surgical innovation in the medical field is generally seen as more resilient than more cyclical industries.</p>
<p>Whether YouChuang KangZhi can grow into a more influential medical technology company still requires time to test</p>

<p>Singapore's tech unicorn UltraGreen.ai saw its stock rise nearly 30% after going public, but due to poor recent performance and the impact of the Iran war, its share price has been sold off over the past month, nearly giving back all its gains, currently up only 1.3%. The company uses artificial intelligence technology to provide medical imaging solutions, with its main product being the medical dye indocyanine green, which helps doctors improve surgical precision. Analysts are exploring the relationship between its business performance and macroeconomic factors in the market</p>

Unicorn stock UltraGreen.ai's price "returns to its original form" what happened to it? | Lianhe Zaobao