Northeast Securities released a research report stating that after years of rapid volume expansion, China's domestic market is gradually returning to steady growth against the backdrop of increasing pressure on medical insurance funds and the comprehensive implementation of medical insurance payment reforms. The comprehensive centralized procurement of equipment and consumables is forcing companies to seek new profit growth points, making "going global" a strategic necessity for advanced domestic manufacturers. China's medical device industry has developed the hard power for global competition, with rapid implementation of high-end equipment and high-value consumables exports and global supply chain construction. As the domestic medical market's payment system matures, the proportion of overseas revenue will increasingly become a core indicator for measuring the growth potential and valuation of medical device companies.
The main viewpoints of Northeast Securities are as follows: Medical Equipment: High-end equipment leads the breakthrough, advancing towards the global first tier. High-end breakthroughs: Domestic medical equipment has shed the stereotype of mid-to-low-end substitution. Leading domestic companies such as United Imaging Healthcare, Mindray Medical, and MicroPort® Robot are entering top European and American medical systems with innovative products like 5T MRI, long-axis molecular imaging, ultra-high-end color ultrasound, and endoscopic surgical robots. Localized operations: A global marketing network and supply chain system are essential pathways for scaling international medical equipment businesses. Through establishing overseas marketing networks, warehousing bases, production facilities, and R&D centers, companies are achieving leapfrog development in their globalization strategies.
High-Value Consumables: Accelerated access to European and US markets, with innovation-driven importance growing. Market access breakthroughs: After gaining experience in relatively lower-barrier Southeast Asian and South American markets, an increasing number of domestic high-value consumable products are obtaining US FDA and EU CE MDR certifications, gradually gaining recognition in mainstream international markets. Global layout: Leveraging economies of scale, some leading high-value consumable manufacturers are making a "great leap forward" in their globalization strategies. Cutting-edge innovation: Transitioning from fast-following to genuine innovation, breakthrough clinical outcomes and expansion into untapped markets will become the core competitiveness for high-value consumables going global.
Low-Value Consumables and IVD: Continued industry consolidation in low-value consumables, steady growth in IVD assembly line installations, with expectations for reagent export volume growth following top-down strategy implementation. IVD: Assembly line equipment continues to gain recognition from overseas clients, with installation volumes steadily increasing; companies are accelerating overseas academic investments and gradually gaining market recognition from high-end clients downwards. Mindray Medical is a prominent example in IVD globalization, continuously advancing the global layout of its marketing network and supply chain.
From product exports to overseas supply chain construction and localized operations, the globalization strategies of Chinese medical device manufacturers are continuously upgrading under economies of scale: ① Geographically, Southeast Asia and South America are initial testing grounds, EU CE certification is a necessary path for mid-to-high-end markets, while the most demanding FDA certification is a long-term strategy; ② In terms of channels, leading domestic manufacturers are continuously exploring the transition from overseas distribution to direct sales under scale effects; ③ Acquiring mature overseas manufacturers has become a conventional choice for overtaking on curves; ④ Academic promotion is a prerequisite for developing mid-to-high-end markets.
Risk warnings include R&D and competition risks, product risks, and overseas policy risks.
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