Analysis of export overseas of domestic listed medical device enterprises in 2022

01

Overall situation of overseas exports

 

The overall overseas revenue of listed companies exceeded 25% in three years, and export volume rebounded significantly in 2022

 

Overseas market demand for epidemic prevention products continues to rise. Based on the statistics of 42 domestic listed medical device enterprises that have disclosed overseas revenue, the compound growth rate of overseas revenue of medical device from 2019 to 2021 is 25.47%, and the overseas revenue scale of listed medical device enterprises in the first half of 2022 is 44.035 billion yuan. Compared with the first half of 2021, the year-on-year growth was 67.83%.

 

 

The proportion of overseas revenue of listed companies has remained stable at around 40% in the past three years

 

Under the background of the "Belt and Road" Initiative and the strategy of double domestic and international circulation, domestic enterprises have a clear trend of globalization due to the impact of the epidemic overseas. Based on the statistics of 42 domestic listed medical device companies that have disclosed overseas revenue, overseas revenue accounted for 47.80% in the first half of 2022, and the proportion of export increased significantly.

 

 

02

Export situation of subdivided fields

 

The average overseas revenue of enterprises in the IVD field is higher than that in traditional fields such as low-value consumables

 

During the epidemic period, testing kits, epidemic prevention materials and other products are in high demand, among which the in vitro diagnosis industry represented by biochemical analyzer, nucleic acid testing reagents, immunodiagnostic reagents and other products has a high revenue. The average overseas revenue of listed IVD enterprises in the first half of 2022 was 1.478 billion yuan, among which the overseas revenue of Jiuan Medical and Oriental Bio reached 22.914 billion yuan and 4.98 billion yuan respectively. The average overseas revenue of listed companies in the field of low-value consumables was 642 million yuan, among which the overseas revenue of Blue Sail Medical and Ogilvy Medical reached 2.3 billion yuan and 1.369 billion yuan respectively.

 

 

Nearly 60% of IVD's revenue comes from abroad, while exports of high-value consumables and household medical equipment account for less than 20%

 

In the first half of 2022, overseas revenue of the in vitro diagnosis industry as a whole accounted for 57.98%, among which Jiuan Medical and Wanfu Biological accounted for 98.49% and 60.41%, respectively. On the one hand, while there is still a continuing demand for diagnostic tests in China, the sudden rush to collect them has made it difficult for companies to replicate the "windfall profits" seen in the early days of the pandemic. On the other hand, after Omicronon became the main epidemic strain, antigen self-testing products became popular in overseas markets, driving the export and revenue growth of domestic enterprises.

Local enterprises have advantages in the production of low-value consumables, as well as the rising number of domestic medical equipment manufacturers such as monitors, medical ventilators, ultrasound, etc., the export proportion is more than 30%. In contrast, high-value consumables, as an important field of domestic import substitution, currently account for less than 20% of total exports. In addition, in terms of household medical equipment, the total revenue of Yuyue Medical in the first half of 2022 was 3.553 billion yuan, accounting for only 11.43% abroad, and it has been declining since 2020, mainly due to the decline in orders of oxygen machines and other products affected by overseas epidemics.

 

 

03

Export by region

 

Enterprises in Guangdong, Shandong, Hubei, Zhejiang and other provinces have the highest overseas revenue

 

Based on the statistics of 67 listed domestic medical device enterprises that have disclosed overseas revenue in the first half of 2022, the average overseas revenue of provincial enterprises exceeds 1 billion yuan, ranking first in China, partly because of the high proportion of in vitro diagnosis enterprises in the province. Shandong, Hubei and Zhejiang provinces each exceeded 800 million yuan.

 

 

04

The export situation of each enterprise

 

Based on the statistics of 67 domestic listed medical device companies that have disclosed their overseas revenue, Jiuan Medical seized the opportunity of the overseas epidemic in the first half of 2022. Its US subsidiary, iHealth, won a large order from the US government for the novel coronavirus antigen home self-test kit, becoming a dark horse this year. The overseas sales amount of the company was 22.91 billion yuan. That's up nearly 50 times year-on-year, with overseas revenue accounting for more than 98 percent. However, as many countries including France, the United States, and the United Kingdom have canceled comprehensive quarantine measures, orders for export antigen testing kits are decreasing, which is also a big challenge to the company's growth.

In addition, from the perspective of overseas revenue scale, in 2022, Mindray Medical actively carried out the construction of medical weakness strengthening projects in the world, focusing on breaking through overseas high-end customer groups. In the first half of the year, its overseas revenue was 6.079 billion yuan, accounting for 39.59% of the total revenue. In terms of the proportion of overseas revenue, Lansail Medical has a high degree of overseas localization, and its overseas sales network covers more than 130 countries and regions around the world. In the first half of 2022, its overseas revenue reached 2.3 billion yuan, accounting for 89.32% of the total revenue.