The 2023 performance reports of 28 medical equipment and high-value consumables companies on the Science and Technology Innovation Board have all been disclosed, and the overall performance is relatively bright, and individual enterprises are developing rapidly. The data shows that 28 companies achieved a total operating income of 3506.2 billion yuan, an average year-on-year increase of 2386%;The total net profit attributable to the parent company was 675.1 billion yuan, an average year-on-year increase of 2892%。The eye-catching performance has gradually rebounded the attention of the sector. According to the data, the Wind Medical Device Select Index is about 15% in February 2024.
In recent years, with the return of diagnosis and treatment activities to normal, the original innovation based on clinical needs brought about by new medical infrastructure, the easing of volume procurement expectations, and the stabilization of the impact of regulatory policies, the performance of the medical device sector has ushered in a reversal and repair, accelerating into an upward cycle, and the industry fundamentals have an obvious upward trend. As a strategic platform for the capital market to serve scientific and technological innovation, the Science and Technology Innovation Board is strongly supporting the medical device industry to cultivate new productivity and achieve high-quality development.
Since the beginning of this year, the Shanghai Stock Exchange has intensively organized visits and surveys of listed companies to increase support for high-quality listed companies. A number of medical device companies on the Science and Technology Innovation Board said in the survey that the development prospects of the domestic medical device industry are broad, and they have shown strong competitiveness in both domestic and foreign markets.
The performance of high-value consumables stabilized
In 2023, 14 high-value consumables companies on the Science and Technology Innovation Board will achieve a total operating income of 13.8 billion yuan, 79% of the consumables enterprises will show positive growth in operating income, and nearly seventy percent of the net profit attributable to the parent company will increase year-on-year.
Although affected by short-term policies and volume procurement, with the return to normal diagnosis and treatment activities this year, non-emergency surgeries are back on track, and the high-value consumables business segment has resumed growth as a whole. In particular, with the orderly promotion of national centralized procurement and the successive development of inter-provincial alliance centralized procurement, the centralized procurement process and management level have been gradually optimized, the impact of volume procurement on high-value consumables is more predictable, and the impact on high-value consumables manufacturers on the revenue and profit side has stabilized.
Taking intraocular lenses as an example, Aibo Medical will achieve revenue of 95.1 billion yuan, a year-on-year increase of 6418%;Net profit attributable to the parent company 30.4 billion yuan, a year-on-year increase of 3083%, both ends have achieved a growth rate of more than 30%, the rapid growth of the business is mainly due to the revenue of intraocular lenses increased by more than 40% year-on-year, the revenue of orthokeratology lenses increased by more than 25% year-on-year, and the rapid growth of vision care products such as glasses and care products, accounting for more than 15% of revenue, building a "two-wheel drive" business model covering the two major fields of surgery and optometry.
In addition, Huitai Medical, which has attracted a lot of market attention recently, has performed steadily. In 2023, the company achieved revenue of 165.1 billion yuan, a year-on-year increase of 3579%;Net profit attributable to the parent company 53.6 billion yuan, a year-on-year increase of 4961%。It is understood that at present, the electrophysiology sector has covered more than 800 hospitals, completed more than 3,500 cases of three-dimensional electrophysiology surgery in more than 400 hospitals, and increased the access penetration rate of the country's leading centers from 27% to 70%.
In January this year, the strong alliance between Mindray Medical and Huitai Medical attracted great attention from the market. Under the empowerment of the industrial integration of the two parties, Huitai Medical's medical equipment business such as 3D mapping system and radiofrequency ablation instrument is expected to be significantly strengthened, which will have a positive impact on the localization rate of electrophysiology and vascular intervention business in the future, and is expected to further consolidate the company's "moat".
The impact of industry policies is positive, and medical equipment is "riding the wind".
The medical equipment on the Science and Technology Innovation Board has a wide range of subdivisions and significant plate characteristics, and the overall performance is outstanding. The revenue of 10 enterprises grew rapidly, with an average growth rate of more than 40%, and the net profit attributable to the parent company of half of the enterprises increased by more than 45%.
In 2023, the impact of industry policies will be positive, and the medical equipment sector will successively usher in multiple favorable policies such as the liberalization of large-scale medical equipment configuration licenses, the release of high-quality development action plans, and the issuance of two batches of subsidy funds for the improvement of medical services and security capabilities. In the medium and long term, industry insiders believe that high-quality domestic brands are expected to continue to grow rapidly under policy support, and medical equipment companies are beginning to take shape in going overseas, and the future development space is worth looking forward to.
For example, United Imaging Medical will achieve revenue of 114 in 20231.1 billion yuan, a year-on-year increase of 2352%;Net profit attributable to the parent company 197.4 billion yuan, a year-on-year increase of 1921%。With excellent performance, the company's product lines are ranked in the forefront of the industry, among which the market share of CT products, MR products and RT products ranks third, and the market share of MI products and XR products (including fixed DR, mobile DR and breast DR) ranks first, and a number of innovative products have been launched.
Other medical equipment segments on the Science and Technology Innovation Board also performed prominently. SWS will achieve operating income of 6 in 2023900 million yuan, an increase of 80 percent year-on-year67%, and the net profit attributable to the parent increased by 227 year-on-year64%, revenue and net profit maintained rapid growth. With the continuous innovation and upgrading of blood purification technology, the application range is more and more extensive, taking advantage of the "Thousand County Project", the company's CRRT equipment sales exceed imported equipment, and the sales proportion ranks first in the industry, and has basically completed the full line layout of blood purification consumables, and has built a more mature competitive advantage in the field of blood purification industry. In particular, its self-developed SWS-5000 series continuous blood purification equipment (CRRT) can formulate personalized plans according to clinical needs, and has strong adaptability and competitiveness.
Aohua Endoscopy is a domestic leader in the field of endoscopic equipment, and the company's operating income will increase by 52% in 202329%, and the net profit attributable to the parent increased by 16693%。As one of the earliest enterprises engaged in flexible electronic endoscopes (commonly found in gastroscopes and colonoscopies) in China, the company has established a strong competitive advantage in the field of endoscopy. In 2022, Aohua Endoscopy will launch a new generation of model AQ-300, which is the first 4K ultra-high-definition endoscopic system launched in China, breaking the oligopoly position of international giants, and the company's products have begun to increase significantly.
Medical treatment has become a new outlet
It is worth noting that the layout of the "two-legged" walking of many medical device companies on the Science and Technology Innovation Board has achieved remarkable results. While focusing on localization, many companies have laid out overseas markets to build a "second growth curve". As the development of overseas markets depends more on factors such as product core competitiveness, marketing system maturity, and brand influence, the advantages of science and technology enterprises can be reflected.
In 2023, United Imaging Healthcare has successively released the world's first 50T human body magnetic resonance UMR Jupiter, brain-like technology platform UAIFI and other cutting-edge products. The company actively promotes overseas layout, and has obtained EU CE certification for 43 products, set up a total of 17 overseas service centers, and built a service team of more than 1,000 people. In the international market, it has carried out head-to-head competition with GPS, Canon, Fujifilm and other brands, and has become a banner for China's medical equipment to go overseas.
Coincidentally, MGI is also quickly starting the "first year of globalization" in 2023. In February 2023, MGI launched the T20 ultra-high-throughput gene sequencer, setting a new record for global gene sequencer throughput and single-person sequencing cost. In November 2023, the company invested in the construction of an overseas manufacturing base in San Jose, California, USA, and established cooperation with a number of channel providers around the world to enhance brand influence.
In terms of high-value consumables, Sino Medical's next-generation coronary drug-eluting stent HT Supreme is applying for FDA approval in the United States, and has begun to accelerate the commercialization process in Latin America, the Middle East, Africa, Asia and other markets. Nanwei Medicine's endoscopic diagnosis and treatment consumables have expanded to nearly 100 countries and regions in overseas markets, among which the United States market and some emerging countries have developed rapidly, and overseas revenue has exceeded 40% of the overall revenue.