Reporter of the Economic Business: He Jianling Reporter of the Economic Business Business: Wu Yongjiu
Picture source: Photo Network
After the market closed several positive lines this week, the market finally saw a callback today. Due to the support of "big guys" such as ports, nonferrous metals, securities companies, and coal, the Shanghai Composite Index closed down only slightly. But the ChiNext Index was not so lucky, closing down nearly 2%.
"Daily Economic News" reporter noticed that the weakness of the ChiNext Index is closely related to the decline of nearly 3% in the medical sector, which led the decline today. Among them, Xinmai Medical (688016, SH) became the champion of decline, with a maximum drop of more than 17% during the session, hitting a new low in the past six months. The stock price of
Xinmai Medical fell sharply, which was directly related to the opening of the centralized procurement of coronary stents yesterday. More than 80% of the main business of Xinmai Medical comes from aortic stent products. After this centralized procurement, the price of the bracket dropped from the average price of about 13,000 yuan to about 700 yuan, which is equivalent to 50% off the original price. It can be said that it is "a discount to the ankle".
As one of the earliest batch of science and technology innovation board Xinmai Medical has been strong since its listing, and its stock price has risen nearly 2 times in less than a year. However, since the high point has shrunk by nearly 40%, what will happen next?
xinmai medical fell by more than 17% during the session
Today's medical industry sector performed the weakest among all sectors in the two cities.
The medical industry fell by more than 5% today, ranking of individual stocks
According to statistics from Oriental Fortune, as of the close, only 8 of the 90 stocks in the medical industry had a red market, and the rest were all green. Among them, 2 had a drop of more than 10%, and as many as 12 had a drop of more than 5% to 10%.
Xinmai Medical Today's time-sharing chart
The worst thing is Xinmai Medical (688016, SH). After opening less than 1% lower, it was hit by a big sell order. After 10 points, the decline had exceeded 10%. At the opening in the afternoon, the stock price fell by 17.50%, reaching the limit of -20%. In the end, Xinmai Medical closed at 237.20 yuan per share, down 13.97%, ranking second in the decline of all individual stocks in the two markets. The transaction amount has increased significantly to 589 million yuan, setting a new high in the past year.
Xinmai Medical Recent daily K-line chart
From the daily K-line chart, today's intraday lowest price of 226.07 yuan/share has fallen below the previous low on September 11, hitting a new low in the past five months since May 26.
In addition to Xinmai Medical , the 10-fold bull stock Jianfan Bio also fell 11% today, showing a high-level heavy drop; Kellytai fell more than 8%, hitting a 9-month low; Sano Medical also fell nearly 8%, hitting a 6-month low. It is worth noting that, regardless of whether the stock prices of these individual stocks are at a relatively high or relatively low level in the recent period, the trading volume has increased significantly during the sharp drop today, showing the strong desire of funds to escape. What exactly happened to
?
National "bargaining" has caused the price of coronary stents to drop by more than 90%
"Daily Economic News" reporter noticed that the large-scale decline in the above stocks today are all related to the main products that may be "helpless to have a fracture".
Image source: Cinda Securities
According to China Daily on November 5, the National Health Insurance Administration, in conjunction with relevant departments, formed an alliance to start from coronary stents, and carried out the first national centralized procurement of high-value medical consumables with volume, and the proposed selection results were produced in Tianjin on November 5. The coronary stent material purchased in centralized volume is cobalt chromium alloy or platinum chromium alloy, and the drug-carrying type is rapamycin and its derivatives, and the procurement cycle is two years.
A total of 11 companies participated in the bidding, and 26 coronary stent products registered and listed in my country participated. Through competition, 10 products are expected to be selected, which are divided into eight companies including Shandong Jiwei Medical Products Co., Ltd., Yisheng Technology (Beijing) Co., Ltd., Shanghai Micro-Invasive Medical Devices (Group) Co., Ltd., Lepu (Beijing) Medical Devices Co., Ltd., and Medtronic (Shanghai) Management Co., Ltd.
After this centralized procurement, the price of the bracket dropped from the average price of about 13,000 yuan to about 700 yuan. Compared with 2019, the same products of the same enterprises have an average price reduction of 93%, domestic products have an average price reduction of 92%, and imported products have an average price reduction of 95%. Based on the intended purchase volume, it is estimated that 10.9 billion yuan will be saved.
Baidu Encyclopedia entry shows that coronary stents, or coronary stents, are commonly used medical devices in cardiac interventional surgery and have the effect of unblocking arterial blood vessels. The main materials are stainless steel, nickel-titanium alloy or cobalt-chromium alloy.
coronary stent (Picture source: Baidu Encyclopedia)
coronary stent is mainly used to treat coronary stenosis caused by cardiovascular diseases, ensure blood supply to the heart, and avoid myocardial infarction and myocardial necrosis. During treatment, the doctor first extends the extremely thin catheter through the blood vessel to the narrow part of the artery; then uses a filling rubber balloon to spread the narrow part; finally, support the artery stent at the expanded artery stenosis to prevent it from retraction. After exiting all catheters, the arterial stent remains at the already dilated arterial stenosis.
Coronary stent surgery steps diagram (Picture source: Baidu Encyclopedia)
According to statistics, from 2009 to 2019, the number of cases of interventional treatment for coronary heart disease in my country has grown from 230,000 to more than 1 million, with an annual growth rate of 10% to 20%. According to the head of the National Health Commission’s Cardiovascular Intervention Management Expert Group, Huo Yong , although stent interventional treatment is one of the most effective means to reduce the mortality rate of patients with acute myocardial infarction, currently less than one-tenth of patients with acute myocardial infarction have adopted this therapy in China.
related listed companies have a gross profit margin of coronary stents exceeding 80%
The centralized volume purchase unit price of coronary stents has been reduced from 13,000 yuan to 700 yuan, which is equivalent to a 50% discount. This is like a "bolt from the blue" for listed companies whose main business is to produce and sell coronary stents.
Image source: Wind data
According to Wind data, Xinmai Medical 2019 annual report shows that the company's aortic stent products account for as much as 83% of the company's business revenue, and the gross profit margin is also as high as 81%. Similarly, the 2019 annual report of Sano Medical also showed that the company's revenue share of coronary stent products also reached 84%, and the gross profit margin reached 83%.
Even compared with liquor listed companies that are recognized as super high gross profit margin in the A-share market (the gross profit margin of Kweichow Moutai’s Moutai product in 2019 was 94%), such gross profit margin is quite considerable.
has risen nearly 2 times in 8 months
Xinmai Medical first day of listing time-sharing chart
As one of the first batch of 25 Science and Technology Innovation Board stocks listed on July 22, 2019, the issuance price of Xinmai Medical is 46.23 yuan per share, corresponding to the net amount of funds raised by 729 million yuan. On the day of listing, the stock price of Xinmai Medical rose 207% at the opening, with the highest intraday increase of 367%, and the closing increase of 242% at 158.30 yuan per share.
data shows that Xinmai Medical is a high-tech enterprise engaged in the research, development, production and sales of aortic and peripheral vascular interventional medical devices. In the field of aortic interventional medical devices, its main products are aortic coated stent systems; in the field of peripheral vascular interventional medical devices, it has peripheral vascular stent systems, peripheral vascular balloon dilated catheters and other products.
Xinmai Medical has been listed since its launch. In the past 4 months after its launch, the stock price of Xinmai Medical slowly fell to around 130 yuan per share, and then began to move upward in early December 2019. On July 1 this year, the Xinmai Medical reached the highest during the trading session at 373.80 yuan per share, which was nearly twice the price when it started in early December 2019. During this period, investors who bought it gained a lot. However, after the news of the third batch of national drug centralized procurement and use of drugs was launched at the end of July this year, Xinmai Medical was no longer strong and gradually launched a pullback.
industry scale will decline, and innovative companies have the opportunity to
face the possible price "big landslide" of coronary stent products brought by national centralized procurement. What is the prospect of this industry?
Guoxin Securities analysts Xie Changyan, Chen Yiling and Zhu Hanqing believe that the industry scale will decline: the scale of the domestic coronary stent terminal market is expected to exceed 15 billion yuan in 2019. After this price reduction, the market size of some brackets for centralized procurement is about 750 million.It is expected that the non-centralized procurement market price will also decline to a certain extent. Assuming the average price drops to 5,000 yuan, the market size of the centralized procurement external bracket will be about 2.65 to 3.95 billion yuan; assuming the average price drops to 3,000 yuan, the market size of the centralized procurement external bracket will be about 1.59 to 2.19 billion yuan. The market size of metal brackets is expected to shrink to 2.3-4.7 billion yuan in 2021. The profit margins of related products in the short term have been affected to a certain extent. It is recommended to continue to pay attention to leading enterprises with strong R&D and innovation capabilities and rich product pipelines under development. It is recommended to buy: Lepu Medical (stainless steel stents have not been included in the centralized procurement, and innovative products such as degradable stents and coronary drug balloons are expected to increase in volume). It is recommended to pay attention to: Minimally Invasive Medical and Lanfan Medical.
Bohai Securities analyst Chen Chen and Zhang Shanfeng said that in the short term, the price reduction of centralized procurement will have an impact on corporate interests, but in the long term, it will accelerate the capacity optimization and efficiency improvement in the Red Sea competitive segment, shorten the marketing cycle of innovative products with outstanding clinical value. Domestic equipment leaders in sub-sectors with rich product systems, excellent innovation and strong technical strength will show a strong attitude in the wave of centralized procurement. It is recommended to pay attention to Bairen Medical, Jianfan Bio , Zhenghai Bio, and Aimeike, Huaxi Bio, Opcom, and Aibo Medical, which have both consumer attributes, technical barriers and stage advantages in the track.
Huatai Securities analyst Dai Wen and Gao Peng also said that the national centralized procurement boots have been implemented, and the short-term suppression factors of the sector have been released. It is recommended to pay attention to the sub-sectors with innovative attributes, sufficient growth, good pattern, and low domesticization rate, such as Nanwei Medical, Jianfan Biology , etc.
Ping An Securities analyst Ye Yin and Ni Yidao pointed out: Like the pharmaceutical industry, the field of high-value consumables has entered the era of innovation. Companies with innovative products and continuous innovation capabilities should be given full attention by investors. In terms of target selection, we believe that we should give priority to: (1) Platform-based enterprises with sound R&D, production, marketing, and service systems and strong strength. We recommend paying attention to Mindray Medical, Vigo Co., Ltd., etc.; or (2) Technology development companies with leading innovation capabilities in the industry, simple architecture and high operation efficiency. We recommend paying attention to Xinmai Medical , Nanwei Medical, Aibo Medical, etc.
(This article is for reference only and does not constitute a basis for trading. It is at your own risk of entering the market.)
