Huachuang Securities: One-time endoscope has differentiation advantage, penetration rate improvement drives market expansion.

Huachuang Securities released a research report stating that by 2025, Ambu will launch the ZOOMAHEAD strategy based on the ZOOMIN strategy, aiming for global leadership in endoscopes, progressively advancing overseas production capacity layout, and gradually improving the global supply system. According to Ambu's calculations, the future global market space for disposable endoscopes is estimated to be around $8 billion (with a penetration rate of 70% in the fields of respiratory, urology, and ENT). In terms of competitive landscape, overseas manufacturers dominate the global market for disposable endoscopes, while in the Chinese market, domestic manufacturers are flourishing, driven by the strong supply chain and manufacturing capabilities in the domestic consumer electronics industry, which bring cost advantages and are propelling the rapid rise of domestic manufacturers. Key points from Huachuang Securities: Ambu - Accelerated expansion leads to financial imbalance, new strategy improves financial situation effectively Strategic progress: 1) 1937-2022: Ambu started with emergency medical equipment, and after 2009, disposable endoscopes gradually became the focus of the company's business. In 2019, the company implemented an expansion strategy (expanding product portfolio, increasing investment in overseas markets, increasing the number of employees, etc.). With the strict requirements for infection control in hospitals under the background of the COVID-19 pandemic in 2020, the sales of Ambu's disposable endoscopes increased significantly, but due to high cost inputs, the company's revenue did not increase profitably. In 2021-2022, as the increase in demand for disposable endoscopes due to the pandemic decreased, the aggressive expansion strategy ultimately led to a temporary financial imbalance in the company; 2) 2022-2025: In November 2022, Ambu introduced the ZOOMIN strategy, and with the effective implementation of the strategy, the company's financial situation improved; 3) 2025-2030: In 2025, Ambu launched the ZOOMAHEAD strategy based on the ZOOMIN strategy, aiming for global leadership in endoscopes. Business progress: 1) Endoscope solutions: Focusing on four major business areas, accelerating product iteration; 2) Anesthesia and patient monitoring: Targeted pricing and strategic market convergence. Capacity progress: Step by step promotion of overseas production capacity layout, gradually improving the global supply system. Disposable endoscopes have differentiated advantages, and penetration rate growth drives market expansion Market space: Compared to reusable endoscopes, disposable endoscopes have lower risk of cross-infection, no need for reprocessing, consistent performance, lower maintenance costs, and greater flexibility and accessibility. They have unique advantages in medical scenarios with high infection risks or high turnover efficiency. However, in the fields of respiratory, urology, ENT, and gastroenterology, the penetration rates of disposable endoscopes in 2025 are only 20%, 10%, 2-4%, and <1%, respectively, indicating significant room for improvement. In the long term, for respiratory, urology, and ENT, the penetration rate of disposable endoscopes is expected to reach 70%, and for gastroenterology, the penetration rates of disposable gastroscopes and colonoscopes are expected to reach 13% and 4%, respectively. The continuous improvement in the penetration rate of disposable endoscopes is expected to drive market expansion. According to Ambu's calculations, the future global market space for disposable endoscopes is estimated to be around $8 billion (with a penetration rate of 70% in the fields of respiratory, urology, and ENT). Competitive landscape: Overseas manufacturers dominate the global market for disposable endoscopes, while in the Chinese market, domestic manufacturers are flourishing, driven by the cost advantages brought by the strong supply chain and manufacturing capabilities in the domestic consumer electronics industry, propelling the rapid rise of domestic manufacturers. Potential varieties: 1) Disposable bronchoscopes (market share of about 20%): Bronchoscopes are often used in ICUs, emergency departments, and operating rooms. Disposable bronchoscopes are more suitable for the high-efficiency requirements of emergency scenarios; 2) Disposable ureteroscopes (market share of about 20%): The maintenance cost of reusable ureteroscopes is high, and disposable ureteroscopes better meet the cost reduction needs of hospitals; 3) Disposable cystoscopes (market share of about 10%): Traditional reusable cystoscopes are usually rigid, while disposable flexible cystoscopes better meet patient comfort requirements. Three paths to enter the disposable endoscope track 1) Direct entry into the disposable endoscope track. Representative domestic companies: Xingfu Factory, Pu Sheng Medical, Huaxin Medical, Ruipai Medical; 2) Endoscope consumables companies enter the disposable endoscope track. Representative domestic companies: Micro-Tech (688029.SH), Hangzhou AGS Medtech (688581.SH); 3) Reusable endoscope companies complete the disposable endoscope product line. Following the path of Olympus, it is expected that domestic representative companies Shanghai Aohua Photoelectricity Endoscope (688212.SH) and Sonoscape Medical Corp. (300633.SZ) will also likely layout in the field of disposable endoscopes. Risk Warning New product development progress is below expectations; commercialization progress is below expectations; intensification of market competition.