CITIC Construction Investment: It is expected that the medical equipment segment will gradually see a turnaround in performance from the second half of this year to next year.

CITIC Construction Investment Research Report stated that as the competitiveness of domestic medical device companies improves, the main growth logic of the medical device industry has gradually shifted from domestic substitution and penetration rate improvement to internationalization and technological innovation, leading to a reshaping of valuation. The international business space is broader, with many medical device companies experiencing high growth in overseas business, and the proportion of international business is expected to exceed that of the domestic market. The medical device industry has seen a significant amount of improvement in innovative products, with some Chinese medical device innovative products transitioning from imitation to global leadership, slowly gaining recognition internationally. Mergers and acquisitions are an important path for the growth of international medical device leaders, and the future will witness more industry mergers and acquisitions. Over the past four years, the medical device sector has been continuously declining, but this year has seen a rebound; with the optimization of centralized procurement policies, continuous improvement in equipment tendering data, and gradual reduction of channel inventories, the medical device sub-sector is expected to gradually reach a turning point in performance from the second half of this year to next year.