Investment Rating - The report initiates coverage with a "Buy" rating and sets a target price of HKD 5.60 [4][66]. Core Views - The company is expected to emerge from the shadow of centralized procurement, with significant growth anticipated in its drug packaging and orthopedic product segments starting in 2024 [2][4][39]. - The medical device sector is projected to recover post-procurement, with a gradual increase in demand for low-value consumables as hospital visits and bed occupancy rates rise [3][40]. Summary by Sections Company Overview - The company is a well-known medical consumables manufacturer, with a broad sales network covering over 5,000 hospitals and 400 blood stations by the end of 2023 [1][17]. - Its product range includes syringes, infusion devices, orthopedic products, interventional products, and blood management products [1][17]. Financial Projections - Revenue for 2024 is projected to increase by 0.4% to RMB 13.278 billion, with a compound annual growth rate (CAGR) of 3.9% expected from 2023 to 2026 [5][53]. - The net profit for 2024 is expected to be RMB 2.024 billion, reflecting a 1.1% increase [5][54]. Drug Packaging Business - The drug packaging segment is anticipated to grow at a CAGR of 10.3% from 2023 to 2026, driven by the increasing demand for pre-filled syringes and pre-filled flushing syringes [2][20][28]. - The pre-filled syringe sales are expected to see a CAGR of 12.6% during the same period, with a significant market share of over 70% in China [21][28]. Orthopedic Products - After experiencing revenue declines due to centralized procurement, the orthopedic segment is expected to recover starting in 2024, with a projected CAGR of 11.8% from 2023 to 2026 [2][29]. - Sales of spinal, trauma, and joint products have shown a rebound, indicating a growing end-user demand [2][33]. Interventional Products - The interventional product segment is projected to maintain steady growth, with a CAGR of 5.3% from 2023 to 2026, supported by the global recognition of the company's products [3][35]. Medical Device Sector - The medical device sector is expected to recover from the impacts of centralized procurement, with revenue anticipated to stabilize and grow from 2025 onwards [3][40]. - The demand for low-value consumables is expected to increase as hospital activity resumes, with sales of key products like infusion devices and syringes showing positive growth trends [3][40]. Blood Management Business - The blood management segment is expected to remain stable in the short term, with a projected revenue decline of 17.4% in 2024, but long-term stability is anticipated due to supportive government policies [51][52].
威高股份：即将走出集采阴霾的著名医疗耗材生产商