Guosen: There is long-term growth potential in the household medical device track, and it is recommended to focus on high-quality targets in the related field.

Guosen issued a research report stating that the home medical equipment track is long, steep, and snowy, with strong structural growth shown in some large single products in the medium and short term. Driven by factors such as deepening aging, strengthening resident health management awareness, and technological and product iteration, the long-term growth space of home medical equipment is stable. It is recommended to pay attention to high-quality targets in the field with improved product layout, rapid progress in popular single products, and leading pace of product going global. Guosen's main points are as follows: The home medical equipment industry is a high-growth potential track under the silver economy. Home medical equipment is an important tool for improving residents' self-health management and early disease intervention capabilities, covering a wide range of areas such as home health monitoring, respiratory therapy, rehabilitation medicine, and nursing protection. With the gradual increase in the number and proportion of elderly people in China, the strengthening of residents' health management awareness, and the supply-side upgrade brought about by policy support and technological innovation, multiple subdivisions of home medical equipment have considerable growth potential. The domestic market growth rate is expected to be higher than the global industry average, showing the characteristics of "low penetration rate + high growth". Health monitoring products are key entry points for home health management. Health monitoring products perform life sign and chronic disease indicator monitoring functions in a household setting. China has a large population of patients with chronic diseases such as hypertension and diabetes, with a large potential demand. Traditional health monitoring products such as blood pressure monitors and thermometers have a certain market size, and with the iteration of products in terms of intelligence and functionality, the high-end market still has growth potential. Domestic brands are steadily increasing their market share by focusing on high-end product lines and improving online platform sales systems. Continuous Glucose Monitoring (CGM) as a revolutionary product for diabetes management, has shown impressive growth in the domestic and overseas markets. Domestic brands have caught up with foreign leading brands in terms of product performance, laying a solid foundation for competitiveness in the domestic market and going global. It is recommended to focus on companies with well-established high-end layouts in traditional categories, and fast commercial progress in new categories such as CGM, such as Jiangsu Yuyue Medical Equipment & Supply, Sinocare Inc., etc. Respiratory therapy is a growth track with wide penetration rate improvement space. Respiratory therapy products mainly include oxygen concentrators, home ventilators, and nebulizers. The domestic oxygen concentrator market is dominated by three super-strong companies, with Yuwell and two other foreign brands occupying over 35% of the market share. The penetration rate of home ventilators in the domestic market is still low, but with continued patient education and the trend of domestic brands actively going global, it is expected to maintain a high compound growth rate. It is recommended to focus on companies leading in market share in the respiratory therapy field, with well-established overseas market development, such as Jiangsu Yuyue Medical Equipment & Supply, Cofoe Medical Technology, BMC Medical, etc. Risk factors: Intensified market competition, slower than expected product iteration progress, improvement in consumer environment, and overseas market policy risks.