CITIC Securities: Short-term performance of the medical device industry is under pressure, and several companies are expected to improve in the second half of the year.

CITIC Securities Research Report stated that, in the medium to long term, the industrial trend of the medical device industry is positive. Innovation, mergers and acquisitions, and internationalization will drive Chinese device industry leaders to gradually grow into global leaders. The previous industry pressure was mainly related to policy influences, with most companies showing a trend of low performance in the first half of the year and improvement in the second half of the year. It is expected that in the third quarter, many companies will benefit from the increase in new products and new business volume, leading to improved performance on a quarter-on-quarter basis, or achieving high growth on the basis of a low base in the same period last year. In terms of specific segments, some companies in the medical equipment sector are expected to benefit from the high growth in industry tender data and accelerated inventory digestion, leading to gradual performance improvement. Some companies in the high-value consumables sector are expected to benefit from the gradual increase in new products and the optimization of centralized procurement policies, with increased performance certainty and valuation repair. CITIC Securities Research is also optimistic about investment opportunities in new technologies such as brain-machine interfaces, exoskeleton robots, AI healthcare, and surgical robots.