Three Factors Resonate: Domestic Medical Devices Embark on a Path of High-Quality Development

70The anniversary point has passed. In the new era, all sectors of our country have embarked on a new journey of high-quality development. As a medical device industry that is related to people's livelihood and is of national importance, it is also in its prime, full of vigor and vitality. Under the synergistic effect of market dividends, technological dividends, and policy dividends, it has embarked on the path of high-quality development.

China's market maintains a high-speed expansion trend.

According toEvaluate MedTechIt is estimated that2017the global medical device market capacity in the year is approximately4,050US dollars,2017-2024The average annual growth of global medical device sales from5.6%，2018The global market capacity in the year is expected to be approximately4,278US dollars,2024will reach5,945US dollars. Overall, the growth rate of the global medical device market has slowed down, and the volume has achieved steady growth amid fluctuations.

As for the Chinese market, according to statistics from the China Medical Device Industry Association,2017In the year, the capacity of China's medical device market was4,450billion yuan, a year-on-year increase of20%，5The expected compound annual growth rate in the future is15-20%，far exceeding global growth. According to calculations by the Medical Device Research Institute,2018In the year, the size of China's medical device market was approximately5,304billion yuan, a year-on-year increase of19.86%。In addition, compared to2018the global4,278US dollar medical device market capacity in the year, China's market share is less than20%，GDPCompared with the population proportion and

China's vast domestic market has provided fertile ground for the growth of domestic medical device companies. Globally, it is not difficult to find that the top twenty medical device companies in the world all originated from the United States, Europe, and Japan, which have vast domestic markets. Therefore, China's huge domestic market will inevitably provide very favorable support for the development of domestic medical device companies.

Industry policy dividends create a good external environment.

With the in-depth development of medical reforms, the tiered diagnosis and treatment system is gradually improving, and local governments continue to increase their support for the hardware construction of primary medical institutions. The surge in demand for medical equipment from primary medical institutions has promoted the expansion of the primary equipment market. Policies encouraging social capital to run medical institutions and the expansion of private hospitals have also increased the demand for domestic equipment.

At the same time, the state continues to strengthen policy support for domestic medical devices and encourage enterprises to innovate.2014Since the year, the special approval procedures for innovative medical devices have been actively implemented, and many companies, including Mindray Medical, have benefited, further guiding and promoting the development of the domestic medical device industry.

Against the backdrop of medical reform, hospitals' shift from focusing on drugs to standardized diagnosis and treatment, increased attention to cost-effectiveness, and the improvement of the status of medical technology departments have all contributed to the sustained high prosperity of medical device demand. Against the backdrop of refined hospital budget management, the cost-effectiveness advantage of high-quality domestic equipment has become prominent.

In addition, Sino-US trade frictions and uncertainties in import and export trade will encourage the country to continue to actively support independent research and development and innovation, accelerating the import substitution of some advanced domestic fields.

Multiple policies have provided favorable measures in terms of market demand, approval procedures, and research and development innovation, greatly promoting the future development of domestic medical device companies.

Mindray Medical: The leading medical device company continues to make great strides.

As China's largest and a world-leading medical device and solution provider, Mindray Medical has seized market opportunities in the new round of medical device upgrades, driving high-quality growth through innovation.

CITIC Securities pointed out that Mindray Medical has achieved the leading position in China in several fields, including ultrasound, monitoring, defibrillation, anesthesia, and biochemistry. High-end monitoring and ultrasound have made breakthroughs in domestic tertiary hospitals and top foreign hospitals. Its future penetration rate and market share are expected to gradually increase.

The announcement shows that Mindray Medical's revenue in the first half of the year reached82.06billion yuan, a year-on-year increase of20.52%；归母净利润实现23.69billion yuan, a year-on-year increase of26.57%。While maintaining steady growth in revenue and profit, the company has also maintained its usual high investment in research and development. Research and development investment in the first half of the year reached7.78billion yuan, a year-on-year increase of10.15%。

The continuous emphasis on independent research and development has enabled the company to achieve a series of outstanding scientific research achievements.2019In the first half of the year,HYPERVISOR X亚重症中央站、腹腔镜气腹机、光学硬管腹腔镜、中高端台式彩超DC-80 X-Insightversion, new low-end portable ultrasoundZ50/Z60and new black and white ultrasoundDP50expert version, low-end desktop ultrasoundDC-30 V2.0version,BS-2000Mautomatic biochemical analyzer(M2)、CL-6000i M2fully automated chemiluminescence immunoassay analyzer, biochemical and immunochemical reagent products (tumor, thyroid function, anemia, liver fibrosis) platform optimization, and a series of products and upgraded versions with excellent performance, reliable quality, and cost advantages in the same market segment.

In addition to these three major business areas, the company is continuously exploring cutting-edge technologies and is actively cultivating a business in the field of minimally invasive surgery. This currently includes laparoscopic camera systems, cold light sources, insufflators, optical endoscopes, minimally invasive surgical instruments, and surgical consumables.

Guojin Securities stated that the minimally invasive surgery business has good synergy with Mindray Medical's existing business. Based on the company's existing manufacturing and R&D platform, channels, and terminal advantages, it is expected to achieve rapid growth and create new business growth points for the company.

Through continuous R&D investment and cross-border mergers and acquisitions, medical device leaders such as Mindray Medical have accumulated some core technologies and won high recognition from end customers. Under the high-quality development path of the new era, the rise of medical device leaders in the world is about to begin.