1 billion yuan of funds to support elderly care construction, medical equipment industry encounters another good opportunity for development

    Recently, according to the "Notice on Issuing the Management Measures for the Central Special Lottery Public Welfare Fund to Support Rural Welfare Homes" issued by the Ministry of Finance and the Ministry of Civil Affairs, the central government allocated 1 billion yuan of central special lottery public welfare funds to support the construction of rural welfare homes in various places. The funds are mainly used to subsidize the repair of facilities and equipment and supplies for rural welfare homes in various places. Under the influence of this news, the medical device sector rose yesterday, and all 18 stocks in the sector rose.

    Analysts said that the proportion of terminal sales of medical devices in the entire pharmaceutical market will gradually increase in the next few years, and the barriers to entry in the medical device industry are extremely high. As the aging of my country's population becomes increasingly serious, the investment value of my country's medical device listed companies will gradually be reflected in the future.

    From the perspective of industry fundamentals, my country's medical device industry has developed rapidly in recent years. According to relevant data, the compound annual growth rate of my country's medical device industry in the past 10 years is 22%, and the current market size is about 100 billion yuan. The proportion of the medical device market in the entire pharmaceutical industry has increased from 8.8% in 2002 to the current 12% to 15%. In just a few years, Yuyue Medical, Xinhua Medical, and Lepu Medical have become companies with a market value of 10 billion yuan. Despite this, my country's medical device development is still relatively backward compared with developed countries abroad. In the United States, the output value of medical devices accounts for about 35% of the overall pharmaceutical industry. To achieve this ratio in my country means that there is still room for doubling. As the aging of the population in my country intensifies, the entire medical device industry will enter a golden period of development in the future.

    It is reported that consumer medical devices will benefit from the rise of the elderly care service industry and will be less affected by policies. Under the influence of a 1 billion yuan subsidy from central fiscal funds, consumer medical devices supporting the elderly care industry will usher in the next round of purchasing peaks, such as Yuyue Medical's wheelchairs, blood pressure monitors, and air purifiers, Sinocare's blood glucose meters, Biolight's handheld monitors, integrated monitors and other medical monitoring equipment, and Jiuan Medical's blood pressure monitors. Listed companies that produce the above-mentioned equipment are expected to become direct beneficiaries of such subsidized purchases.