Since the beginning of 2022, the performance of the medical device industry has been eye-catching, and the segments such as covid-19 pneumonia detection, in vitro diagnosis and gene detection have risen one after another. The medical device ETF of the “anti epidemic theme” fund received market attention. On January 14, the ETF rose 4.20% in a single day, ranking first in the ETFs of the two cities, with a single day turnover of 130 million yuan, a new high since listing.
It is understood that the medical device ETF (159883) tracks the China Securities all refer to the medical device index. The index components cover such subdivided industries as medical equipment (weight 29.72%), medical beauty (weight 12.02%), medical consumables (weight 26.35%), in vitro diagnosis (weight 25.49%), and diagnostic services (6.42%). From a conceptual point of view, there were 17 covid-19 pneumonia detection stocks, accounting for 29.28%. It is worth noting that with the tightening of the epidemic situation outside China, the attention of the medical device ETF market has increased significantly. Since its listing at the end of April last year, the average daily turnover has exceeded 30.06 million yuan, and the average daily turnover has been enlarged to 65 million yuan since the beginning of the year.
the detection amount of covid-19 may remain at an all-time high
With the global spread of Omicron, the number of confirmed cases in the world continues to rise. According to the latest real-time statistics of who, on January 14, there were 3.12 million new confirmed cases of covid-19 pneumonia and 7942 new deaths. Among them, more than 680000 confirmed cases were added in the United States, and the average daily new cases in 26 states reached the highest level since the outbreak. In China, on January 14, 104 local cases were newly diagnosed in 31 provinces, autonomous regions and cities, involving Henan, Tianjin, Shanghai, Guangdong and Zhejiang. So far, 12 cases of Omicron have been found in Anyang, Guangzhou, Zhuhai, Zhongshan and Shenzhen.
According to the latest research report of Anxin securities, according to owid data, the detection volume of covid-19 in major European countries reached 140 million in December 2021, a record high, with a month on month growth rate of about 40%; The detection volume of covid-19 in the United States reached 52.38 million, close to an all-time high, with a month on month growth rate of about 30%. Due to a certain delay in data acquisition and update, the latest detection volume data in January 2022 needs to be followed up. However, due to the strong correlation between the newly confirmed cases of covid-19 and the detection volume of covid-19, judging from the record high situation of newly confirmed cases in the world, it is expected that the detection volume of covid-19 will continue to be at an all-time high.
domestic machinery enterprises speed up going to sea
With the surge in overseas demand and large-scale nucleic acid testing in many places in China, the market demand for covid-19 pneumonia testing is high, and the sales of covid-19 testing reagent is expected to increase, which may bring performance flexibility to relevant enterprises. Up to now, covid-19 antigen self-test kits produced by Andon Health Co.Ltd(002432) , Zhejiang Orient Gene Biotech Co.Ltd(688298) and other companies have taken the lead in obtaining FDA certification in the United States. Companies such as Medicalsystem Biotechnology Co.Ltd(300439) , Beijing Wantai Biological Pharmacy Enterprise Co.Ltd(603392) , Guangzhou Wondfo Biotech Co.Ltd(300482) have said that their covid-19 test reagent products are also preparing to apply for FDA certification in the United States.
In fact, China’s low-value consumables have taken the lead in completing the industrial internationalization. In 2020, the top ten enterprises of medical device exports include five low-value consumables manufacturers, such as exporting medical dressings, gloves, etc. The recent spread of Omicron will also accelerate covid-19 pneumonia detection company to go to sea. From low-value consumables to medical equipment and then to high-value consumables, China’s export of medical devices has increased rapidly.
In the short term, the global dependence on China’s medical device supply chain has increased. Chinese medical device companies also actively seize this opportunity to compete with global giants. In the long run, the covid-19 pneumonia epidemic may reshape the pattern of the global medical industry. With the introduction of national industrial policies, international competition will become more and more intense, and China’s medical device industry chain will face new challenges and opportunities.
investment opportunity outlook for medical devices in 2022
At the end of 2021, the Ministry of industry and information technology issued the “14th five year plan” for the development of medical equipment industry, which is the first five-year plan to promote the development of medical equipment at the national level, put forward the overall goal of the development of medical equipment industry in 2025 and the long-term goal in 2035, and pointed out the development direction for the development of medical devices in 2022 and even the next decade.
Du Xiangyang, assistant director and chief pharmaceutical officer of Southwest Securities Co.Ltd(600369) recently said that from the supply side, Chinese machinery enterprises still face two low problems: one is low penetration, and these fields will be a blue ocean in the future, which means greater growth space; The other is the low localization rate, which means that the logic of import substitution and import substitution space will be more occupied by domestic enterprises in the future.
For the sector Market in 2022, Du Xiangyang believes that the high performance base caused by the epidemic has been digested almost in 2021. After the policy expectation is relatively sufficient and the epidemic subsides in the short term, new medical infrastructure in China and abroad is also being carried out. Therefore, the performance of the device sector in 2022 is still worth looking forward to, and the overall valuation of the sector may continue to rise.
Insiders said that for ordinary investors, the types of medical devices are complex and the research threshold is high, individual stocks fluctuate greatly, individual investors have higher research difficulty, and it is more worry-free to use index funds, which can also disperse the investment risk of individual stocks. At present, there are medical device ETFs (159883) covering anti epidemic, pension and medical beauty on the site, and there are also feeder funds (a share 013415, C share 013416) on the site. Investors may wish to share the long-term growth dividend of domestic devices through relevant industry index funds.
