(Original title: Caishuo | Microelectrophysiology rose 44% in three days, and the medical device sector was exhausted)
There is no significant positive release in the short term, but the medical device sector continues to be strong. From October 13th to 17th, in the three trading days, the CSI Medical Device Index (H30217.CSI), which can reflect the trend of the sector, increased by 13.39%, ending the continuous yin decline since July 2021.
In the A-share market, stocks with a larger weight in the medical device index: Mindray Medical (300760.SZ), Amic (300896.SZ), Lepu Medical (300003.SZ), Jianfan Bio (300529.SZ) on the 3rd Up 9.92%, 0.21%, 22.22% and 19.67% respectively.
In Hong Kong stocks, the Hang Seng Healthcare Index rose for two consecutive days. Representative medical device companies among the constituent stocks: Weigao (01066.HK), MicroPort (00853.HK), and Lifetech (01302.HK) rose 8.32%, 28.17% and 5.28% respectively on the 3rd.
The recent policies in the medical device sector have been hot, and the policies related to medical devices are more clear. On September 7, the National Standing Committee decided to provide periodic financial discounts on loans for equipment renovation and renovation in some fields and increase credit support for the social service industry, so as to promote consumption to play a major role in driving consumption. On September 13, the National Standing Committee decided to support policies for special re-loans and fiscal discounts. The overall loan scale is 1.7 trillion yuan, of which 200 billion yuan is involved in the procurement of medical equipment.
The main channels of hospital equipment procurement and renewal funds include government financial funds. The Health and Health Commission notified that it intends to use fiscal discount loans to update and transform medical equipment, and further clarify the policy of using fiscal discount loans to update and transform medical equipment in hospitals. In principle, the relevant financial discount loans are fully liberalized to all public and non-public medical institutions, and the loan amount for each hospital is not less than 20 million.
Demand for related medical equipment is expected to continue to boost. Anxin International issued a document stating that including 160 million county-level hospitals will bring a total incremental market of 320 billion yuan, covering ventilators, multi-function ECG monitors, defibrillators, sequencers, CT, DR, color Doppler ultrasound and other equipment. Pay attention to MGI (699114.SH), Mindray Medical, United Imaging Medical (300760.SZ), etc.
Kaiyuan Securities also stated that investment in new medical infrastructure is expected to maintain a high level for a long time, and financial discount loans are expected to release hundreds of billions of medical device market demand. Kaiyuan Securities believes that it can focus on medium and large medical imaging equipment manufacturers (United Imaging Medical, Wandong Medical, etc.), life information and support equipment manufacturers (Minray Medical), endoscopy manufacturers (Kaili Medical, Aohua Endoscopy, etc.) and Laboratory scientific research equipment manufacturers (MGI, Haier Bio, etc.)
At the other end of the policy is the “decompression” of medical devices. On September 3, the National Medical Insurance Bureau stated that “due to the clinical use of innovative medical devices is not yet mature, the usage is temporarily difficult to predict, and it is difficult to implement the method of taking the amount”, which is regarded as a signal that medical devices are not included in the centralized procurement for the time being.
Innovative medical devices refer to device varieties with domestic invention patents, innovative technologies, and high clinical applications. There are innovative device varieties in many sub-fields such as surgical robots, medical imaging, and cardiovascular intervention. Since October, the influence of medical device product policies has continued to “ferment”. On the 12th, the Medical Insurance Bureau issued another document to exclude 3D printing medical device products from entering the centralized procurement.
It is the main logic for the rebound of the medical device sector to exhaust the negatives and bottom out the stock price. Caitong Securities analysis pointed out that “innovative devices are not included in the medical insurance negotiation, which is conducive to devices in the growth period.” The research believes that the high-value medical consumables and diagnostic sectors have been fully collected, cleared and evaluated. It is recommended to pay attention to Lepu Medical, Antu Biology, Xinmai Medical, Weigao Orthopedics, etc.
Essence International believes that the short-term market is relatively pessimistic about the centralized procurement of equipment. In the long-term, there are many sub-tracks in the sector, and sub-tracks such as molecular diagnostics and minimally invasive robots have great potential. It is recommended to pay attention to minimally invasive robots with the concept of surgical robots (2252.HK), NovoHealth (6606.HK) for early cancer screening, and Eagle Eye Technology (2251.HK) for AI screening in ophthalmology.
This may be the logic behind the recent rapid rebound of the “minimally invasive department”. Minimally Invasive Medical, Minimally Invasive Robot, Xinmai Medical, Xintong Medical, and Microelectrophysiology (688351.SH) increased by 28.17%, 27.00%, 43.70%, 12.22% and 44.43% respectively on the 3rd.
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