This week, we discuss the situation of the oral medical service industry.
Dental medical service industry: the industry is growing rapidly, with huge potential space for orthodontics and implant. Industry scale: with the acceleration of population aging, the improvement of residents' awareness and the enhancement of payment ability, the demand for oral business has increased rapidly. From 2015 to 2020, the scale of China's oral medical service industry has increased from 92.3 billion yuan to 162.8 billion yuan, with a compound growth rate of 12.02%. It is expected that the scale of the industry will increase to 526.1 billion yuan in 2030 and a compound growth rate of 11.77% from 2021 to 2030, The proportion of private enterprises will increase from 54.3% to 68.9%. Demand side: the penetration rate of oral treatment in China is only 48.41%, lower than that in the United States, which is more than 70%. Among them, the penetration rate of high-end demand such as orthodontics and planting is only 0.79% and 0.51% respectively, which is far lower than that of developed countries. According to the calculation, the potential market space of Orthodontics and planting business is 247.8 billion yuan and 150-300 billion yuan respectively. Supply side: the supply of dentists in China is seriously insufficient. In 2020, the number of dentists per 100 people was only 199, less than 1 / 3 of that in developed countries, and the high-end supply is scarce. However, the supply of dentists is growing rapidly. According to the current growth rate, the supply level is expected to reach the level recommended by who in 2030. As oral medical services are naturally suitable for independent practice, the industry is highly market-oriented and the competition pattern is very scattered.
Stomatology industry: doctors are highly dependent, and improving the ability to obtain medical treatment is the key to chain operation. Compared with other specialized hospitals, stomatological hospitals have a high proportion of doctors' expenditure and a low proportion of equipment, showing a strong dependence on doctors. The logic behind this is that stomatological treatment is mainly manual operation, which depends more on doctors' technology and experience. Due to the limited supply level and the high willingness of doctors to practice independently, stomatologists are difficult to obtain, which has become the biggest bottleneck of chain operation in the oral industry. Therefore, we believe that improving the medical ability will become the key to the chain operation of oral institutions.
Related subject matter: Topchoice Medical Co.Inc(600763)
In addition to the medical ability, the expansion mode and single hospital operation efficiency are also the key to the competition in the oral service industry. The company has outstanding competitive advantages in these three dimensions, which are shown as follows:
Medical ability: obtain and attract excellent stomatologists by participating in the reform of public hospitals, medical teaching and research cooperation, clarifying the internal promotion path, and promoting the shareholding of core doctors;
Expansion mode: the "general hospital + branch hospital" mode is adopted for expansion, and the enabling effect of the general hospital has been verified; The "Dandelion plan" accelerates the sinking of the grass-roots market in the province, and the external savings fund cultivates the market outside the province, and the expansion mode is becoming increasingly clear;
Single dental chair / single hospital output: implement CM mode, implement planting multiplication plan and characteristic branch plan, and improve the proportion of high-end businesses such as planting and orthodontics
Risk tips: policy risk, repeated epidemic risk, less than expected expansion, risk of major medical accidents.
