Although the east wind of policy is blowing frequently, the medical device sector also needs to be rationally laid out

【Pharmaceutical Network Market Analysis】The recent medical device sector can be described
as quite lively.
In early trading on November 16, the medical device sector was still relatively active, at 10:12, Yingke Medical rose by more than 4%, and Mindray Medical, Lepu Medical, Aier Eye and others followed suit
.
Since late September, a number of individual stocks in the medical device sector have performed well, with high gainers during the period, such as Mindray Medical, United Imaging Medical, and KaiKai Medical, all rising by more than 20%, performing strongly
in the weak market.
According to industry statistics, as of the end of the third quarter at the beginning of this year, the share of medical device ETFs increased by 88%
year-on-year.
During the year, the medical device sector ushered in an IPO boom
.
Among them, on August 22, the domestic medical imaging equipment leader United Imaging Medical officially landed on the science and technology innovation board, as of the morning close, the stock rose 66.
26% to 183.
69 yuan, with a total market value of 150.
6 billion yuan; BGI Intelligent Manufacturing was listed on the science and technology innovation board on September 9 this year, and the stock price rose 22% after the opening, with a market value of more than 40 billion yuan
.
Microelectrophysiology, a listed electrophysiology company (stock price of 22.
22 yuan, market value of 10.
46 billion yuan), was also listed
on August 31 this year as the fifth set of standard head stocks on the science and technology innovation board of medical devices.
From the perspective of the reasons for the rise in the sector, it is mainly related
to the frequent blowing of the east wind of policy.
On September 15 this year, the National Health Commission issued a notice that it intends to use financial discount loans to upgrade and transform medical equipment, with a total financial discount loan of about 1.
7 trillion yuan, and the national scale of medical equipment renewal discount is expected to reach hundreds of billions
.
This favorable policy sounded the "assembly number" of new infrastructure for medical equipment and drove the sector to rise
sharply for several days.
In addition, on September 3, the Health Insurance Administration issued the "Reply of the National Medical Security Administration to Recommendation No.
4955 of the Fifth Session of the 13th National People's Congress" (hereinafter referred to as the "Reply"), which for the first time explicitly set aside a certain market in addition to centralized procurement to provide space for innovative products to develop markets
.
This also sends a signal
to the industry that innovative medical devices are temporarily less affected by centralized procurement.
Under the east wind of various policies, the medical device sector has appeared on the stage, attracting investors to actively layout
.
Kaiyuan Securities believes that the national and local finances have once again given sufficient financial support to the new medical infrastructure, and the introduction of financial discount loans to support the renewal and transformation of medical equipment will become an important part
of the further promotion of the new medical infrastructure.
Kaiyuan Securities estimates that the demand for hundreds of billions of medical equipment renovation in the country is about to be released, and the medical device industry will continue to be in a boom period
of high market demand.
However, the industry also reminded that although the medical device sector is good, it also needs a rational layout
.
From the perspective of the policy requirements for the renewal and transformation of medical equipment with financial discount loans, the time node required by the document is December 31, 2022, and the industry expects that some problems will inevitably be encountered in the implementation process, such as the current offline work cannot be promoted in time, some large-scale equipment may not be able to obtain configuration certificates, hospitals may be difficult to apply for interest discounts due to time constraints, and domestic self-owned brand equipment may not be selected
by hospitals 。 Some industry insiders also said that although the re-loan and financial discount policies are beneficial, for public hospitals with relatively single funding channels, the policy can alleviate the problem of insufficient funds in the process of hospital development, reduce the cost of hospitals, and promote the upgrading of hospital equipment, but many hospitals, especially private hospitals, may be unwilling to declare the purchase of equipment
if their operating conditions are not good.
At present, a large number of companies actively respond to the subsidized interest loan policy and fully support medical equipment renewal and transformation projects
.
However, many pharmaceutical companies said that the favorable policy has little impact on the company
.
For example, Jianfan Biotech recently said on the interactive platform that the relevant policies of the state on financial discount loans have a promoting effect on the renewal and transformation of medical equipment in hospitals and have a certain positive effect
on the company.
Since the company's current equipment products do not account for a high proportion of overall revenue, this policy does not have a significant impact
on the company.
At present, the medical device sector has built a bottom, but not all companies are worth layout, for some companies with high valuations and no sustainability in performance outbreak, we should remain rational, and we need to select enterprises
with investment value.
Deppon Securities analysts pointed out in the research report that there are many subdivisions of medical equipment, and equipment with low localization rate + high technical barriers is the key area of domestic medical equipment at present, and medium and high-end domestic substitution + concentration improvement contains investment opportunities
.
In the medium and long term, with favorable policy support, the aging of the population, and the continuous breakthrough of domestic medical device technology, the medical device sector still has investment value
under the three logical main lines of "big infrastructure" trend + domestic substitution of high-end devices + internationalization.
Although the policy wind is blowing frequently, the medical device sector also needs to be rationally laid out (Image source: Pharmaceutical Network) Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice
to anyone.