Guotai Haitong Securities Co., Ltd. has issued a research report maintaining an "Overweight" rating on the medical equipment sector. The nationwide promotion of large-scale equipment renewal is becoming increasingly regularized and specialized, significantly boosting procurement enthusiasm among medical institutions at all levels. Demand for innovative diagnostic and therapeutic equipment, such as imaging and radiotherapy systems, is rapidly expanding. As equipment renewal policies continue to be implemented, they are expected to drive medical equipment procurement over the long term. The firm recommends medical equipment companies that are likely to benefit from these policies and see a recovery in performance. Key points from Guotai Haitong's analysis are as follows:
Due to a high base effect, medical equipment procurement declined partially in the first two months of 2026. According to Zhongcheng Data, on a monthly year-on-year basis, new equipment bidding volumes in February 2026 fell by 4.6% for MR systems, 30.2% for CT scanners, 3.6% for DR systems, 31.6% for ultrasound machines, 21.3% for endoscopes, and 4.8% for surgical robots. On a cumulative year-to-date basis, new equipment bidding volumes in the first two months of 2026 decreased by 14.6% for MR, 27.5% for CT, 24.4% for DR, 26.2% for ultrasound, 12.2% for endoscopes, and 14.1% for surgical robots. Looking at specific companies, in February 2026, United Imaging's MR systems saw an 82.5% year-on-year increase, while its CT systems declined by 3.1%. Mindray's ultrasound sales fell by 21.2%, whereas SonoScape's ultrasound sales grew by 36.0%, and its endoscope sales decreased by 2.6%.
The continued implementation of equipment renewal policies is expected to sustain medical equipment procurement over the long term. In 2024, four government ministries jointly issued the "Implementation Plan for Promoting Equipment Renewal in the Healthcare Sector," which sets a target of increasing healthcare equipment investment by more than 25% by 2027 compared to 2023, aiming to elevate high-end equipment configurations to the level of upper-middle-income countries. Additionally, throughout 2024, provinces and cities across China announced substantial procurement plans for domestic medical equipment renewal projects. Since 2025, the state-driven large-scale equipment renewal initiative has gradually normalized and specialized, significantly enhancing procurement activity among medical institutions at all levels and accelerating the release of demand for innovative diagnostic and therapeutic equipment, such as imaging and radiotherapy systems.
The structure of medical device exports is rapidly shifting toward technology-intensive products, with international competitiveness steadily improving. Data from the China Chamber of Commerce for Import & Export of Medicines & Health Products shows that in 2025, China's exports of hospital diagnosis and treatment products reached $24.057 billion, an increase of 8.12% year-on-year, accounting for nearly half of total medical device exports. High-value-added categories experienced explosive growth, with PET and SPECT imaging equipment exports surging 175.20% year-on-year and surgical robot exports soaring 368.1% year-on-year. Exports of endoscopes, artificial joints, hearing aids, MR systems, artificial kidneys, invasive ventilators, implantable prostheses, and other ophthalmic instruments and devices all achieved double-digit growth rates. Furthermore, exports of core components for high-end imaging equipment, such as X-ray generators and X-ray tubes, also saw rapid growth. Overall, as China's medical technology continues to advance, related products are accelerating their penetration into global markets thanks to their high cost-performance ratio, driving the export structure toward technology-intensive products and steadily enhancing the industry's international competitiveness.
Risks include slower-than-expected recovery in equipment procurement, delays in policy implementation, and product price fluctuations.
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