As a leading R & D and manufacturer of high-tech medical equipment in China, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) ( Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) ) continues to receive high attention from the market. According to the latest investor relations activity record disclosed by the company, from February 11 to February 25, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) successively welcomed a total of 650 institutions in multiple batches.
During the investigation, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) revealed that the company’s life information and support production line has achieved a certain breakthrough in the international high-end market, and gradually brought synergy to the international high-end breakthrough of the other two production lines.
international market has huge growth space
Institutional investors first pay attention to the market space of future business According to Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) introduction, the accessible market space corresponding to the three production lines and four high potential businesses of the company is 120 billion yuan in China and 710 billion yuan in the world respectively, while the company’s Chinese and international revenues in 2020 are 11.1 billion yuan and 9.9 billion yuan respectively, of which the international market share is only a low single digit at present, so there is still huge growth space for the deployed businesses in the future, Especially in the international market.
However, the market characteristics of thousands of medical device categories and limited space for single categories determine that the long-term development of an enterprise is inseparable from continuous business expansion, which is also the road that Mindray has gone through in the past three decades and will continue to go in the future. To this end, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) in choosing new business areas, it will be based on the following three considerations: first, there must be a certain technical threshold to give full play to the company’s advantages in R & D; Second, it can expand internationally, make effective use of the advantages of the global business platform and maximize the efficiency of R & D expenses; Third, it can serve the ecosystem of critical care, first aid, minimally invasive surgery, inspection, ultrasound and so on.
Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) pointed out that with entering the stage of high-quality development of public hospitals and accelerated promotion of DRG payment, hospitals now consider how to improve management and operation efficiency and disease diagnosis and treatment ability when expanding. The ecosystem created by the company’s hospital wide product solutions and SanRui IT solutions can not only effectively improve the management efficiency of equipment, but also help the hospital improve the diagnosis and treatment ability. Through the integration of data between different equipment, it realizes the auxiliary diagnosis functions such as early warning of sepsis, liver fiber examination, congenital heart disease screening and so on.
“Compared with only supplying a single product, the ecosystem built by the company undoubtedly has a strong competitive advantage and a deep moat, and will continue to enter more business fields around these ecosystems in the future to consolidate the competitive advantage and deepen the moat.”
continue to increase R & D investment in chemiluminescence
Regarding the impact of the medical insurance policy on the IVD industry, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) believes that the IVD reagent, as a cost item of the hospital, whether it is centralized procurement, sunshine procurement, DRG / dip and technology consumption separation, aims to help the hospital reduce the proportion of reagent consumption (that is, the proportion of reagent procurement cost in the inspection and acceptance fee), so as to help the hospital reduce the procurement cost. The reason why Anhui Province chose to concentrate on chemiluminescence is that the consumption proportion of chemiluminescence is higher than that of other IVD fields, and the consumption proportion is reduced by compressing the profits of circulation links.
“However, the fundamental reason for the high proportion of chemiluminescence consumption is the low localization rate in this field, and the product technology and quality of domestic enterprises have not exceeded the import. Therefore, the medical insurance bureau has always emphasized the need to ensure the reasonable profits of production enterprises, encourage domestic enterprises to innovate independently, and fundamentally help hospitals reduce the proportion of consumption by improving the localization rate.” Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) indicates.
At the same time, the company believes that the medical insurance policy will not reduce the amount of testing in hospitals, and based on the impact of the irreversible macro factor of population aging, the amount of testing will continue to grow steadily in the future. In the future, the company will continue to increase the R & D investment in IVD, especially chemiluminescence, accelerate the R & D Progress of antigen antibody and other chemiluminescence core raw materials through hytest’s mature R & D platform, improve the competitiveness of the company’s chemiluminescence reagents, achieve a comprehensive breakthrough in tertiary hospitals as soon as possible, and accelerate the improvement of localization rate in this field.
achieve a breakthrough of more than 700 blank high-end hospitals
During the investigation, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) revealed that as a production line with the highest brand awareness and product competitiveness, the life information and support production line has achieved a certain breakthrough in the international high-end market, and the monitors and anesthesia machines have been installed on a large scale in the top hospitals in Europe and America. With the outstanding performance of anti epidemic products represented by respirators during the overseas covid-19 epidemic, the company achieved a breakthrough in more than 700 blank high-end hospitals in the international market in 2020. In recent years, as the overseas marketing platforms have become more and more mature after in-depth changes, these 700 high-end hospitals continue to bring a large number of non anti epidemic orders to the company in 2021, greatly accelerating the international high-end breakthrough of life information and support production lines, and gradually bringing synergy to the international high-end breakthrough of the other two production lines.
Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) pointed out that as the production line with the largest growth space, the international high-end breakthrough of IVD plays a vital role in the long-term development of the company. First of all, as the most mature sub business in IVD, by increasing the investment of special price machines, strategic machines and other instruments, the blood cell business began to gradually enter medium and high sample size hospitals and third-party chain laboratories, and actively layout overseas localized OEM, so as to ensure the stable supply of reagents and improve the cost performance advantage.
Secondly, through the brand influence established by the blood cell business, the company accelerated the transformation of biochemical and chemiluminescence from low sample size hospital to medium sample size hospital, increased the investment of instruments, and gradually increased the proportion of reagent revenue. Finally, while driving the collaborative admission of coagulation and other IVD sub businesses, biochemical and chemiluminescence began to break through to customers with high sample size. The company realized the transformation from single product supply to IVD overall solution supply, and began a comprehensive high-end breakthrough in the international market.
Thanks to the leading product competitiveness in POC field including TE SERIES anesthesia ultrasound, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) POC ultrasound has achieved large-scale installation in top international markets such as Europe and the United States, and has achieved the third market position in the field of POC ultrasound in the United States. “Although the company’s traditional ultrasound field in the international market is still generally concentrated in the middle and low-end market, with the company’s technological breakthrough in high-end and ultra-high-end ultrasound, the ultrasound business will also fully open the breakthrough of high-end customers in the next few years.”
