Investment Rating - The industry rating is "Outperform the Market" indicating that the overall return of the industry is expected to exceed the market benchmark index by more than 5% in the next 6 to 12 months [79]. Core Insights - The report highlights a significant increase in bidding data for medical equipment, with monthly bidding amounts showing year-on-year growth rates ranging from 41% to 113% from December 2024 to May 2025, suggesting a robust demand recovery [4][17]. - The report emphasizes the strong performance of innovative drugs, with companies like China Biopharma and Rongchang Bio continuing to see positive developments, supported by government policies optimizing drug procurement [5][41]. - The medical device sector is expected to experience a turning point in financial reporting in Q2 and Q3 2025, as the effects of increased bidding data begin to reflect in company revenues [4][26]. Summary by Sections 1. Weekly Performance Review - The CITIC Medical Index rose by 1.5% during the week of June 9-13, 2025, outperforming the CSI 300 Index by 1.8 percentage points, ranking third among CITIC's primary industry classifications [3][41]. - The top five performing stocks for the week included Yiming Pharmaceutical (+38.49%), Saiseng Pharmaceutical (+36.35%), and Aoyang Health (+35.01%) [59]. 2. Equipment Bidding Data - Bidding amounts for medical equipment have shown a consistent increase, with May 2025 seeing a 69% year-on-year growth, indicating a strong recovery in demand [4][17]. - The report predicts that the financial results for companies involved in equipment installation will begin to reflect this demand surge in Q2 2025, while inventory companies may see performance improvements by Q3 2025 [4][26]. 3. Mid to Long-term Investment Strategy - The report suggests focusing on three main themes: innovation, recovery, and policy support. It highlights the potential for innovative drugs and medical devices to drive growth, particularly in companies with strong international competitiveness [5][6]. - Specific companies to watch include Union Medical, Shanhai Mountain, and Mindray Medical, which are expected to benefit from the ongoing recovery in bidding data and demand [4][6][27].

Core Viewpoint - The article highlights the recent procurement results for medical equipment in Xinjiang and Henan, emphasizing the significant wins for domestic companies like Mindray and Zhongyuan Huiji in the bidding process for biochemical analyzers and ultrasound diagnostic devices [2][5][7]. Summary by Sections - **Xinjiang County Medical Community Equipment Update Project**: Mindray won two packages, securing 226 biochemical analyzers (BS-830) at a total amount of 9.6954 million yuan, with a unit price of 42,900 yuan each. Additionally, Mindray also won 94 color Doppler ultrasound diagnostic devices at a total of 3.9198 million yuan, priced at 417,000 yuan each [2][3]. - **Henan County Medical Community Equipment Update Project**: The announcement on May 26 indicated that the Henan Provincial Health Commission awarded contracts for biochemical analyzers, with Mindray winning 164 units for a total of 20.286 million yuan. Zhongyuan Huiji secured 66 units for 5.643 million yuan [6][7]. - **Market Trends**: The article notes that the county medical community is a key procurement unit for both old-for-new medical equipment and centralized purchasing. There remains a significant equipment gap in grassroots hospitals compared to tertiary hospitals, indicating a strong market opportunity for domestic manufacturers [7][8]. - **Future Outlook**: The article suggests that the ongoing trend of replacing old medical equipment presents a favorable environment for companies like Mindray and Zhongyuan Huiji. Mindray's management expressed confidence in growth for the first half of the year, citing an increase in the execution rate of old-for-new programs compared to the previous year [8][9].

Group 1 - Company is re-entering the capital market with a focus on the Hong Kong Stock Exchange after previously withdrawing its application for the Shenzhen ChiNext in December 2021 [1] - Company was established in 2003 and is a leading supplier of medical X-ray imaging systems, holding a 7.6% market share in China and ranking first in mobile C-arm X-ray machines with a 20.6% market share [2] - Company has a diverse product line with over 100 models, including mobile C-arms, digital X-ray machines (DR), and integrated solutions for orthopedic surgeries [2] Group 2 - Company reported fluctuating revenue with approximately RMB 377 million, RMB 501 million, and RMB 484 million for the fiscal years 2022, 2023, and 2024 respectively, while incurring losses of RMB 43.7 million, RMB 15.9 million, and RMB 44.4 million during the same periods [3][4] - The majority of revenue comes from mainland China, accounting for around 80% of total revenue, while overseas revenue has been declining due to regional conflicts [3][4] Group 3 - Company employs a sales model that includes both direct sales to hospitals and reliance on distributors for overseas markets, with over 1,200 hospitals purchasing products in fiscal year 2024 [5] - Company has been increasing its R&D expenditure, which was RMB 33.6 million, RMB 38.4 million, and RMB 45 million for the fiscal years 2022, 2023, and 2024, representing 8.9%, 7.7%, and 9.3% of total revenue respectively [5] Group 4 - The global medical X-ray imaging system market is projected to grow from approximately USD 19 billion in 2023 to USD 29.5 billion by 2032, with a compound annual growth rate (CAGR) of 5.0% [7] - In China, the market size for X-ray imaging systems reached RMB 24 billion in 2023 and is expected to approach RMB 45.2 billion by 2032, with a CAGR of 7.3% [8] Group 5 - The medical device industry in China is experiencing a recovery, with significant increases in procurement amounts and special bond issuances for medical equipment [9] - Despite the company's technological advantages and market position, it continues to face challenges related to losses and debt, raising questions about its ability to overcome these obstacles [9]