Northeast: The valuation of high-value consumables sector is expected to be reshaped, industry investment shifting from " rebound" to " exploration".

Northeast released a research report stating that in 2025, under the multiple policy influences such as volume-based procurement, medical insurance cost control, medical insurance generic names, and medical service price reforms, the high-value consumables industry is undergoing a profound value reconstruction. Group procurement has gradually evolved from the early "low price is the only criterion" to "anti-internal competition, stable in clinical use, and focus on quality." With the increase in the localization rate of the sector, in the long term, improvement in policy environment, highlight of innovative value, and the sector's valuation is expected to be reshaped. The high consumption industry will enter a key window of value reconstruction in the "post-group procurement era" of 2025. The industry is transitioning from "valuation compression" to "differentiation repair," and the investment logic is moving from " rebound" to " mining." The key points of Northeast are as follows: Policy optimization leads to valuation repair, transitioning from "only low price" to "clinical value" In 2025, the National Medical Insurance Administration clearly proposed the principles of "stability in clinical use, quality guarantee, prevention of over-standard, and anti-internal competition." The selected mechanism introduced "clinical brand quantity" and "lowest price self-certification." Coupled with the medical insurance generic name reform and dynamic adjustment of medical service prices, the industry is moving from "price competition" to "value return." Innovative products with genuine clinical differentiation are expected to receive reasonable premiums. Innovation breakthrough builds core competitiveness, from domestic substitution to entering the "global first-in-class" ranks The acceleration of innovative medical device evaluation and listing, with enterprise research and development investment translating into commercial successes. In cardiovascular intervention: products like MICROPORT Firelimus drug-eluting balloon, Firesorb biodegradable stent, LIFETECH SCI iron-based biodegradable stent are leading the wave of "intervention without implantation"; for structural heart disease: products like Piajah Medical TaurusNXT dry valve, Beijing Balance Medical Technology Co., Ltd. Renato valve filling the domestic gap; in electrophysiology: PFA becomes a new blue ocean, the number of domestic registration certificates for exceeds import, APT Medical Inc.'s "circular + linear" dual catheter solution, Shanghai Microport EP Medtech's self-developed pressure catheter driving domestic technological iteration; in neurological intervention: Sino Medical Sciences Technology Inc.'s self-expanding stent obtaining a breakthrough device certification from the FDA; in orthopedics: AK MEDICAL K3 knee joint and Siasun Robot&Automation initiating a new business model of "equipment + consumables". Accelerated international expansion creates the second growth curve, from "trade-oriented internationalization" to "ecological internationalization" Globalization continues to drive the second growth curve, with companies deepening their local presence through certification, acquisition, and establishment of factories. The orthopedic sector continues to exceed expectations in terms of overseas expansion, with WEIGAO GROUP acquiring Ellang and integrating overseas platforms, leading to a continuous increase in overseas revenue share; Beijing Chunlizhengda Medical Instruments' overseas revenue accounted for over 40% in the first three quarters, Double Medical Technology Inc.'s overseas revenue increased by +50.84%, covering more than 70 countries and regions; Shanghai Sanyou Medical Co., Ltd achieved a 444% explosive growth in the US market. Micro-Tech acquired CME in Spain and established a base in Thailand, with overseas revenue accounting for 58% in the first half of 2025; Jiangxi Sanxin Medtec completed product registration in Indonesia and Peru, with an 83.84% increase in the export of blood purification products in the first half of 2025; ANGELALIGN's overseas case numbers increased by 103%, and the US factory is expected to further open up the global market. Companies are transitioning from single-product exports to a comprehensive ecological layout of technical standards output, localized production capacity, and internationalized branding. Restructuring mergers and business transformation drive value reevaluation, leading companies optimize their business structures and valuation logic through asset restructuring, spin-offs, and cross-border expansion MICROPORT integrated the Heart Medical and Arrhythmia Management businesses, while consistently strengthening cost control, aiming to turn losses into profits in the latter half of 2025; Shandong Weigao Blood Purification Products plans to acquire Weigao Pray, entering the field of pharmaceutical packaging materials and creating a dual-drive of "blood purification + packaging materials"; Lepu Medical Technology, holding Shanghai Minwei Biological, enters the GLP-1 triple-target weight loss track and obtains approval for youth injection, DBS system, realizing a cross-border layout of "medical devices + medical beauty + innovative drugs." Suggestions focus on leading companies with continuous innovation capabilities and international layout; sub-sectors where performance is expected to be repaired under policy optimization; companies with restructuring through mergers and acquisitions, with the potential to enhance valuation. The domestic IVD industry in 2025 is facing multiple pressures of declining volume and price, leading to increased costs, and the industry clearance will increase concentration. Expanding internationally has transitioned from being an "optional choice" to a "necessary choice," with overseas markets becoming the core growth engine and valuation anchor. ShenZhen New Industries Biomedical Engineering is a benchmark, with overseas revenue growing by 21% in the first three quarters, reagents increasing by as much as 37%, and overseas gross profit margin surpassing domestic levels. High-end instruments X8 and X10 are competitive in the international market. Shenzhen YHLO Biotech sees a significant increase in overseas chemiluminescence business revenue, with reagent consumption growing by over 50%, indicating that overseas installation has entered a harvest period. Autobio Diagnostics, Shenzhen Mindray Bio-Medical Electronics (IVD business) also achieved double-digit growth in overseas revenue, with breakthroughs in high-end products such as production lines in international markets. Despite domestic pressures, Guangzhou Wondfo Biotech has established subsidiaries in Russia and the Philippines, with a return to growth in North American toxicology business, actively seeking overseas growth. Mergers and transformations open up the second growth curve, with companies like Sansure Biotech Inc. setting an example, entering the growth hormone track through the acquisition of Zhongshan Haiji, and participating in pet diagnostics, genetic sequencing through equity investments, achieving a transformation into "integrated diagnosis and treatment." Andon Health has transformed into a dual-core business of "medical health + investment." Innovation and efficiency build long-term barriers Product innovation: companies continue to invest in research and development to drive product iterations. Companies like Mindray, ShenZhen New Industries Biomedical Engineering, Autobio Diagnostics, Shenzhen YHLO Biotech have introduced high-end chemiluminescence analyzers and fully automatic production lines, capturing the high-end hospital market in China and securing future reagent consumption. AI empowerment: Shanghai Runda Medical Technology's AI large models are used in test report interpretation and pathology-assisted diagnosis to improve industry operational efficiency. Suggestions focus on companies with high and sustainable growth in overseas revenue; companies with ample cash flow that can achieve transformation through strategic mergers and acquisitions; companies that continue to invest in research and development and have built differentiated advantages in high-end instruments, production lines, AI diagnostics, or specific molecular diagnostics areas. Risk warnings: Unexpected delays in policy implementation, risks in research and competition, product and international market risks, etc.