Industry perspective
The concentration of medical devices is expected to increase, and the product registration and evaluation mechanism will continue to be improved. During the two sessions held in early March, many representatives of the CPPCC or the National People’s Congress put forward constructive suggestions for the development of the medical device industry, including product innovation, merger and reorganization and product registration. The concentration of the medical device industry is expected to continue to improve in the future, and the leading companies in the sector will directly benefit. In the future, in the process of continuously improving the registration and evaluation mechanism of medical device products, the R & D and application efficiency of Innovation Medical Management Co.Ltd(002173) device products will continue to improve, the product sales price designation will be more reasonable, and it is expected to enter medical insurance earlier after listing.
Terminal institutions actively respond to repeated epidemics, and the long-term investment logic of the sector remains unchanged. Under the general strategy of “external defense input and internal defense rebound” and the general policy of “dynamic clearing”, the medical institutions of Companies in the medical service sector can basically calmly deal with the sporadic epidemic, make sufficient preparations to maintain the normal pace of diagnosis and treatment, and the demand for specialized medical treatment continues to flourish. Patients who choose to postpone medical treatment will also go to see a doctor after the epidemic eases, It is expected that the recent recurrence of local epidemics will bring some adverse effects, but the degree of impact and action time are relatively limited. We believe that high-quality private medical services are a powerful supplement to public medical services and can provide more diversified medical choices for the broad masses of the people under the catalysis of the market mechanism. On this basis, companies with excellent diagnosis and treatment level, hospital management level, talent absorption ability and business model with long-term development potential still have great prospects.
The policy of centralized purchase of Chinese herbal pieces is expected to reduce the cost of purchasing Chinese herbal pieces by social hospitals. Shandong, Ningxia, Shanxi and other provinces have introduced the policy of centralized procurement of traditional Chinese medicine slices. The national inter provincial traditional Chinese medicine (material) Procurement Alliance has begun to report the volume of traditional Chinese medicine slices. The traditional Chinese medicine slice industry has entered the integration period. We believe that traditional Chinese medicine hospitals with independent closed-loop supply system may benefit.
The growth hormone policy is expected to gradually stabilize, and the valuation of the sector is expected to be repaired. On March 10 this week, Guangdong Provincial Drug suggestion Center released the notice of Guangdong provincial drug trading center on publicizing the proposed winning / alternative results of centralized procurement of diclofenac and other drugs of Guangdong Alliance (the first batch). The selection price and alternative price of growth hormone powder injection change moderately, and the price system of water injection is expected to stabilize. According to the disclosure of the previous online training meeting on the centralized purchase of drugs such as diclofenac in Guangdong, it is expected that the work flow of the follow-up alliance centralized purchase is to determine the quantity, confirm the purchase quantity and announce the implementation. With the announcement of the quotation for centralized procurement in Guangdong, the policy uncertainty of the growth hormone industry is gradually eliminated, which is expected to drive the upward repair of the valuation of the sector. At present, the valuation of the industry is cost-effective, so it is recommended to focus on it.
Investment advice
We believe that with the policy support for product innovation and the improvement of industry concentration, some leading companies of medical device segments are expected to become competitive enterprises worldwide in the future. It is suggested to pay attention to device companies with perfect sales and R & D pipeline layout.
The medical institutions under the service sector companies may be disturbed by the epidemic to a certain extent in the short term, but the service leading enterprises with long-term value still deserve attention.
At present, the policies of growth hormone industry are gradually implemented, and it is suggested to pay attention to the performance growth and valuation repair opportunities of subsequent sectors; Vaccine companies that pay attention to the quotation of centralized collection of follow-up blood products by Guangdong alliance and conventional heavy-duty class II vaccine products with excellent performance growth.
Key companies: Changchun High And New Technology Industries (Group) Inc(000661) , Beijing Wantai Biological Pharmacy Enterprise Co.Ltd(603392) , Chongqing Zhifei Biological Products Co.Ltd(300122) , Aier Eye Hospital Group Co.Ltd(300015) , Shanghai Microport Endovascular Medtech (Group) Co.Ltd(688016) , etc.
Risk tips
Covid-19 virus mutation; The recovery of diagnosis and treatment demand is less than expected; The intensity of centralized purchase and negotiation exceeded expectations; The supply of anti epidemic materials increased and the quantity and Price Bureau deteriorated; R & D and new product launch were less than expected.
