Another pharmaceutical company is expected to reap good results in 2022!

Following the adjustment of the previously announced annual revenue growth target of WuXi AppTec from 68-72% to 70-72%, another pharmaceutical company is expected to reap good results
in 2022.
Dongxing Medical, which is about to land on the Growth Enterprise Market, released a performance forecast saying that it expects a profit of 120 million yuan to 130 million yuan in 2022, an increase of 8.
84% to 17.
91%
over the previous year.
The reason for the change in performance is that the sales revenue of the company's stapler products in overseas markets increased, and the revenue of the stapler parts business increased compared with the previous year, so that the company's operating income and net profit increased
compared with the previous year 。 According to the company's 2022 third quarter report, the main revenue reached 318 million yuan, a year-on-year increase of 3.
26%; the net profit attributable to the parent was 76.
9742 million yuan, an increase of 7.
53% over the same period last year; Deducted non-net profit of 69.
0994 million yuan, up 1.
36% from the same period last year; Among them, in the third quarter of 2022, the company's main revenue in a single quarter was 106 million yuan, a year-on-year decrease of 5.
77%; The net profit attributable to the parent in a single quarter was 24.
6515 million yuan, down 7.
73% from the same period last year; The non-net profit in a single quarter was 19.
5492 million yuan, down 25.
51% from the same period last year; The debt ratio is 9.
7%, the investment income is 1,945,100 yuan, the financial expenses are -315,400 yuan, and the gross profit margin is 54.
97%.

Dongxing Medical is a medical device enterprise, and its revenue components include stapler, medical equipment, and stapler parts, of which the revenue contribution of stapler accounts for about 40% to 50%.

In 2019, 2020, 2021 and the first half of 2022, the company's revenue from stapler products accounted for 55.
81%, 39.
39%, 46.
55% and 43.
94%
of the main business income, respectively.
It is understood that in surgery, stapler is mainly used for the disconnection, suture and anastomosis of various orifices and tissues in the human body, because of the outstanding advantages compared with traditional manual suture, it has been widely used in thoracic surgery, gastrointestinal surgery, hepatobiliary surgery, urology and other surgical fields
。 In recent years, with the aging of the population, the upgrading of consumption, the continuous growth of domestic surgeries, and the increasing penetration rate of minimally invasive surgery, Huaan Securities predicts that the size of China's stapler market will exceed 10 billion yuan in 2022, reaching 10.
929 billion yuan, and is expected to reach 14.
058 billion yuan (CAGR=8.
8%) in 2025, with a compound growth rate higher than the global average
。 From the perspective of market pattern, in recent years, with the continuous release of policies to support the innovation of domestic medical devices, forcing domestic device companies to innovate the layout, at present, domestic stapler manufacturers include Tesson Medical, Davy Medical, etc.
, market competition is becoming more and more fierce, and they have competed for the market "cake"
.
According to the prospectus, Dongxing Medical has realized the whole industrial chain layout from stapler product R&D and design, mold development, parts production, product assembly to downstream sales through the acquisition of Wake Medical and Zihang Precision
.
As of June 30, 2022, the company has obtained 31 medical device registration certificates and filing certificates, and participated in the drafting
of the national industry standard "laparoscopic cutting stapler and components for endoscopic surgical instruments" 。 Its stapler products have covered hundreds of domestic medical institutions, and have successively obtained the U.
S.
FDA, BRAZIL ANVISA, SOUTH KOREA KFDA and other certifications, some products have obtained ISO 13485 certification and CE certification, and the products are exported to Asia, Europe, South America, Africa and other countries and regions
.
Zihang Precision is a high-tech enterprise integrating R&D, design and processing of medical device components, mainly engaged in the research and development, production and sales of stapler parts and components, and the products designed and produced are supplied to more than 100 domestic stapler manufacturers
.
It is worth mentioning that stapler medical consumables are also the object of centralized procurement, and centralized procurement
has been carried out in many places across the country.
This year's Beijing-Tianjin-Hebei "3+14" stapler medical consumables belt volume linkage procurement results show that a total of 68 manufacturers in 2018 specifications and models were selected, of which the average price of tube/end stapler decreased from 2530 yuan to 320 yuan, an average decrease of 86.
89%; The average price of hemorrhoidal stapler decreased from 2333 yuan to 267 yuan, an average decrease of 88.
09%.

It can be said that the stapler price has officially entered the "100-yuan era"
.
Disclaimer: Under no circumstances does the information or opinions expressed herein constitute investment advice
to anyone.