Will these companies, which are on the rise of the epidemic, be sent back to their original form?

Text . . Edmund's new crown epidemic, which has swept the world with the advent of vaccines from all over the world, is beginning to dawn.
in this smoke-free war, a large number of pharmaceutical and health enterprises have been able to rise or re-develop with the demand brought about by the outbreak, especially medical device companies.
the global outbreak is under control, the outbreak of the "east wind" of these medical device companies will be back to the original shape? 01, to "epidemic" to work, medical enterprises fully profitable due to the demand in the epidemic greatly increased, the entire medical device industry in 2020 overall good.
the first three quarters of this year, the total revenue of 78 medical device companies in Shenwan's medical device industry increased by 22% year-on-year, with more than 70% achieving net profit growth.
we have combed through the list of companies with net profit growth of more than 30% in the first three quarters of 2020 and the business related to the outbreak, and compared it with the growth rate of net profit in 2019.
Chart 1: List of companies with net profit of more than 30% in the first three quarters of 2020: Company Annual Report, Company Third Quarter Report, Zhongkang Industrial Capital Research Center can clearly see that the above enterprises in the first three quarters of 2020 net profit growth is much higher than in 2019 - their development benefits from the outbreak performance is obvious.
from the breakdown of the track, enterprises are obviously concentrated in consumables, in-body testing, ventilators and monitors and other fields.
in the medical supplies circuit, Anglo Medical and Blue Sail Medical's medical gloves products have contributed significantly to the company's profit growth.
2019, The company's net profit did not grow, while its net profit grew by 3376 percent in the first three quarters of 2020, making it one of the best companies in medical devices.
similar companies are Omei Medical and Zhende Medical, which focus on medical dressings.
for these companies, the increase in demand from the outbreak is undoubtedly the main reason for the sharp increase in the company's performance.
detection requirements brought about by the outbreak have also contributed to the development of in-body diagnostic tracks.
of IVD enterprises in the first three quarters of this year's net profit growth rate of more than 30%, compared with 2019 net profit growth rate is also a very significant improvement.
for companies with a significant business coverage of the POCT segment, the demand for detection of the new coronavirus has boosted revenue significantly.
Wanfu Bio's semi-annual report showed that the company achieved revenue of 1.05 billion yuan, a significant increase of 275.46 percent over the same period last year, mainly driven by strong sales of new crown anti-medical reagents.
first half of 2020, Mingde bioreagent revenue accounted for 75.35 percent of total revenue, up 214.20 percent year-on-year, and new crown reagent revenue also accounted for the majority.
on the ventilator circuit, Murray Medical's gains were reflected in overall net profit growth and revenue from ventilator products.
2018, the company's respirator products revenue of about 300 million, 2019 revenue of about 400 million, and in the first three quarters of 2020, the revenue of ventilator products has reached more than 1.7 billion, accounting for about 20% of the monitoring line revenue, a significant increase.
not only brought financial improvement to medical device companies, but also made a considerable number of enterprises have been recognized by the capital market.
the rise in share prices of well-known listed companies as a result of the increase in financial data, as of today, as many as 15 equipment companies have successfully landed on A-shares.
a considerable number of A-share "recruits" in the first three quarters of 2020 have a leap in net profit growth, in the capital market also performed well.
, which focuses on in-body diagnostics, is not only the most visible of the newly listed enterprises, but also the most amazing growth in net profit under the entire medical device sector.
first three quarters of 2020, the company reported total revenue of $3.605 billion, net profit of $2.013 billion and a net profit margin of 55.84 percent, according to the company's annual report.
first half of 2020, the company's reagent revenue of 1.815 billion yuan, accounting for 86.45 percent of total revenue.
the company's earnings growth was due to a surge in sales of new crown-checking reagents.
In addition to oriental biology under the IVD circuit, Wanta Bio, these brightly-performing new listed companies also have robust medical treatment for the manufacture of medical protective gloves, Arch East Medical for vacuum blood-picking supplies, and Kantai Medicine for focused monitoring diagnostics.
in the medical device industry as a whole good background, some unlisted companies also take advantage of the opportunities brought by the outbreak to prepare for the listing, it is also worth noting.
such as Zhonghong Medical, which produces medical protective gloves, and Dana Bio, which focuses on immunological analysis.
to mention is that Lep Diagnostics and Huada Zhizhi, two biopharmaceutical giants, are spin-offs of Lep Medical and Huada Genetics.
Huada Zhi's main business is gene sequencer, in 2019 loss of 130 million yuan, the company in the first three quarters of 2020 alone made a profit of 190 million yuan, a sharp turn-around profit.
Lepu Diagnostics also made a profit of 323 million yuan in the first half of 2020 with the help of POCT new crown reagents and instruments, far exceeding the net profit of less than 50 million yuan in 2019.
positive impact of the outbreak on both companies is immeasurable.
02, after the outbreak, who is the main floating? Even if the demand from the outbreak is an opportunity, is it a sustainable incentive for the business or a short-term dividend? First, it should be viewed in terms of the segment in which the company's products are located.
if the enterprise's products in the post-epidemic era do not have more in-depth clinical application, there is likely to be overcapacity problem.
the early new crown epidemic spread fast, widespread, many medical protective supplies enterprises and cross-industry enterprises actively respond to the government's call to expand production, transfer production of medical protective supplies.
, according to sky-eye survey data, this year, more than 3000 enterprises nationwide business scope of new masks, protective clothing, goggles and other products.
After the global epidemic was brought under control, the main business focused on medical gloves, masks, blood vessels and other medical low-value supplies enterprises, especially the product quality of low-end enterprises, if not timely completion of production capacity and business transformation, the large probability of revenue will be cliff-edged decline.
for medical device products that can be further applied after the outbreak, enterprises will benefit from two levels, thus making the corresponding enterprises continue to benefit.
, the outbreak has made a considerable part of the industry attention, especially PCR, ventilators and other industries, the entire industry market size is expected to grow rapidly and continuously.
May 21, 2020, the National Development and Reform Commission, the National Health and Health Commission and the State Administration of Traditional Chinese Medicine jointly issued the Notice on the Issue of capacity-building programmes for public health prevention, control and treatment.
program points out that it is necessary to focus on the public health exposure of the new crown pneumonia epidemic, especially the short board of the prevention and treatment capacity of major outbreaks, and adjust and optimize the distribution of medical resources.
program not only includes the strengthening of the ICU, i.e. the necessary medical equipment such as CPR, ventilator, inosometrial pulmonary oxygenation (ECMO) should be configured according to different sizes and functions, but also the improvement of public health testing, scientific research and emergency medical rescue capabilities.
, the programme proposes that hospitals should integrate existing resources and build laboratories that reach the level of biosecurity level II or III, polymerase chain reaction (PCR) laboratories, etc.
Chart 2: Reference reserve data for emergency relief materials at major epidemic treatment bases Source: National Health And Wellness Commission, Zhongkang Industrial Capital Research Center on the other hand, this new crown outbreak provides a historic opportunity for high-quality Chinese medical equipment to take to the international stage and establish a brand.
, a significant number of parts of the world were unable to resume work, and the capacity of existing medical devices was significantly reduced.
public information shows that the EU's traditional medical device supply chain can only meet about 10% of the demand, and many brands due to product positioning and high prices, not suitable for large-scale procurement by governments.
based on this logic, some countries and regions tend to purchase medical equipment from China, which brings ample opportunities to medical device enterprises in China.
Specifically, China's leading gene testing enterprise Huada Gene Homeopathic launched the "Fire Eye" laboratory integrated integrated solution services, the global batch of "Fire Eye" laboratory has become a multi-country outbreak prevention and control outpost, in April this year, the company also signed a $265 million super order with Saudi Arabia; This window opened up foreign markets, the company's overseas revenue as a proportion of total revenue from 9.34 percent in 2019 to 68.81 percent, and such as Sanxiang bio-new crown nucleic acid testing products exported to France, the Philippines, the United Arab Emirates, Turkey and other more than 140 countries and regions, some countries market share of more than 80 percent.
and the most typical overseas market expansion, is also Myer Medical's ventilator business.
by the end of October 2020, Myer's ventilators have been added to more than 600 top hospitals overseas, covering Asia Pacific, Latin America, Russia and other regions and countries.
In Europe, for example, In addition to exporting products to the hospitals it originally covered, Murray has also entered more than 100 key hospitals, rapidly expanding the European market, which normally takes at least three years to reach such a number.
the outbreak has greatly increased the company's overseas recognition and shortened the company's internationalization process by at least five years, according to Mr. Murray.
with the help of the "window period" of the epidemic, domestic equipment is expected to quickly catch up with foreign products, and then fully open up the domestic replacement space for medical devices, as well as domestic high-end medical manufacturing of the comprehensive export road.
even after the outbreak subsides, some high-quality companies will benefit from the global domestic substitution and innovation dividends of other product lines.
addition to products, we should also consider the process of listing enterprises.
outbreak has brought excellent financial data to medical device enterprises, enterprises should also take advantage of this opportunity to the capital market, and strive for listing in order to seek better development.
opportunities brought about by this outbreak, and this year's wave of IPOs.
2020, as of November 1, 2020, there were 431 companies that had IPO meetings on the SSE, surpassing the total number of companies meeting in 2018 and 2019 and reaching a five-year high.
specific to the concept of medical devices, a total of 21 medical device concept stocks will be listed in 2020, far more than the 12 in 2019.
these enterprises seize the outbreak and IPO wave of opportunities, smooth "ashore", the future development of enterprises undoubtedly on a level.
, however, in October this year, the State Council issued the State Council's Opinions on Further Improving the Quality of Listed Companies, insisting on controlling increments and resolving the stock.
in recent months, the number of weekly IPOs has been around 20, while approvals have been issued in single digits.
wave of IPOs, there is likely to be a tightening of listing policies.
, the current wave of IPOs is the last for companies to go public, and if they miss out, they could be back to where they were before the outbreak.
overall, short-term demand from the outbreak is not expected to persist in 2021, so revenue growth for medical device companies will inevitably decline in 2021.
when the tide passed, what kind of enterprises will be hit back to the "original shape", and what kind of enterprises can take advantage of opportunities to produce qualitative change? First, the main products can be further applied after the outbreak, especially by the relevant policies of enterprises, due to the expansion of the domestic market, will be sustainable development.
, with the help of the epidemic window to complete the innovation of the sea, the world set up a brand of enterprises, there will be broad prospects for development.
and for the main low-value supplies and medical protection products of enterprises, the surge in revenue is also hurried, go in a hurry.
companies are likely to return to pre-epidemic revenue levels if they don't take advantage of this wealth to actively transform and upgrade their product lines.
for companies that have not yet completed their listing, be sure to catch the waves and get ashore.
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