It is expected that in December and Q1 2025, each province will gradually implement the policy of replacing old with new, with related in-hospital tenders launched, and equipment manufacturers are expected to see a large number of orders for replacing old with new in the fourth quarter.
It was learned from the Securities Times app that China Post Securities released research reports stating that the hospital medical rectification has entered normalization, weakening the impact on procurement; the approval of the policy of replacing old with new for equipment is steadily advancing; the gradual implementation of ultra-long-term national bonds and discounted loans and other bullish factors are driving improved performance in hospital procurement data. It is expected that starting in the fourth quarter of 2024, some medical equipment products will see a rapid recovery in procurement, with rapid growth in procurement amounts in areas such as ultrasound, CT, MR, DR, endoscopy, surgical robots, etc. It is expected that in December and Q1 2025, various provinces will gradually implement the policy of replacing old with new, related in-hospital tenders will start, and equipment manufacturers are expected to see a large number of orders for replacing old with new. In addition, considering that the overall performance base of the medical equipment sector in the second half of 2023 was relatively low, the medical equipment sector is expected to enter a high-growth performance range.
The total budget for medical equipment renewal procurement intentions in the medical field in China has reached 17.7 billion yuan, and the total budget disclosed in the medical equipment renewal tender announcement has reached 4.8 billion yuan. In March 2024, the State Council issued the "Action Plan for Promoting Large-scale Equipment Renewal and Old-for-New Consumer Goods", and at present, medical equipment renewal is gradually entering the intention procurement stage, with preliminary approved projects expected to gradually land. According to data from Zhongchengshuke, as of November 17, the total budget for medical equipment renewal procurement intentions in the medical field in China has reached 17.7 billion yuan, and the total budget disclosed in the medical equipment renewal tender announcements has reached 4.8 billion yuan, with the medical equipment renewal tender amounts in provinces like Beijing, Hebei, Fujian, Ningxia, and Hainan exceeding 0.5 billion yuan.
Most provinces prioritize the procurement of ultrasound imaging diagnostic equipment. Looking at the product category situation of procurement across provinces, as of November 10, the number of product categories in the equipment renewal tender procurement has gradually increased in various provinces nationwide, involving 252 subcategories. Among them, Heilongjiang province has the highest number of sub-product categories, reaching 149, followed closely by Yunnan province, with 133 categories. In addition, the number of provinces purchasing ultrasound equipment is the highest, reaching 24. According to disclosed data from various provinces, intention procurement categories are concentrated in imaging and endoscopy, with a focus on ultrasound, CT, endoscopes for digestion, DR, MRI devices, and ultrasound being the most desired.
Recommended targets: Shenzhen Mindray Bio-Medical Electronics (300760.SZ), Qingdao Haier Biomedical Co., Ltd. (688139.SH).
Benefiting targets: Leipzig Medical Imaging (688271.SH), Beijing Wandong Medical Technology (600055.SH), Shinva Medical Instrument (600587.SH), Edan Instruments, Inc. (300206.SZ), Aohua Endoscopy (688212.SH), Sonoscape Medical Corp. (300633.SZ), Haitai New Light (688677.SH), MicroPort Scientific Corporation-B (02252), Tianzhihang-U (688277.SH).
Risk warning: Intensified industry competition risk, policy execution falling short of expectations risk, industry black swan events.
