Another medical device market, the industry giant earthquake in the future!

Pharmaceutical Network February 8 News February 6, 2018, China Securities Regulatory Commission issuance examination committee notice, audited, Zhende Medical Supplies Co., Ltd. was approved.

This from Shaoxing City, Zhejiang Province, enterprises, the industry may not have heard that much, but Zhende Medical is really a medical device business, and the strength is good.

Divided by product category, this is a medical supplies business, further refinement is the medical dressing production, research and development, sales enterprises, the main products are gauze, cotton, surgical kits, bandages, pressure socks and so on.

As we all know, China is the largest exporter of medical dressing in the world, while Zhende Medical has been the top three medical dressings manufacturer in China for many years in succession. It is also one of the top three Chinese dressings exporters.

As with many medical device segments, the medical dressing industry in China has also shown a trend of more and more, smaller and more scattered, with very few enterprises with sales revenue of over 100 million yuan, while Zhende Medical has over 10 revenue for the past three years Among them, in the first half of last year, the revenue was 611 million yuan, the net profit of 46.3 million yuan.

In the business structure of Zhende Medical, the export (export) is the bulk of the revenue. The company started as an OEM manufacturer of overseas medical device brands and has so far exported over 70% of the company's revenue.

Zhende 8 percent revenue by OEM sales, more than 2 percent rely on domestic companies own brand products, domestic sales account for a small proportion, which also affected the industry's perception and understanding of their.

However, in recent years, the proportion of Zhen De's medical treatment of domestic sales is increasing year by year, we can see that the company's emphasis on the domestic market and efforts are also increasing.

Zhen De medical from Zhejiang has been approved in the A-share market while the same is the top 3 medical dressing export enterprises, while the other two large exporters dressing are also lined up to be listed.

China's medical dressing export market leader - Ogilvy & Mather Medical Co., Ltd. from Zhijiang City, Hubei Province, in November last year, the SFC official website disclosure prospectus, to be listed on the Shenzhen Stock Exchange.

Ogilvy & Mather's main products are gauze films, music films, wound films, surgical towels, etc .. The company's operating income in recent years have more than 1.5 billion yuan, of which 8.32 billion yuan revenue in the first half of last year, net profit attributable to the parent also 130 million yuan.

Ogilvy & Mather also relies on providing OEM services for international medical device brand manufacturers, accounting for 90% of the total export revenue. In the first half of last year, the proportion of export sales in main revenue was as high as 95.76%.

Steady Medical Products Co., Ltd. from Shenzhen, Guangdong, to be listed on the Shanghai Stock Exchange However, this from the US stock market retreat Nasdaq stocks companies, not good luck in the SFC's first launch last October will review Not passed.

And Zhen De and Ogilvy & Mather is not the same, the main product of robust addition to medical dressings, as well as cotton clothing, home appliances, sanitary napkins, diapers, etc. What, but this does not prevent the steady growth of China's medical dressing exports One of the top 3 companies.

Robust 2016 revenue reached 2.56 billion yuan, net profit attributable to more than 400 million yuan Chinese medicine With dressing in this part, from 2014 to 2016, the company's export sales of dressing products are up and down 700 million yuan.

Stable dressing products have both OEM and export, but also domestic sales in the domestic market, the proportion of sales relative to the other two also higher, about 30%.

Domestic top three export dressing companies lining up to landing A shares, which has also become a major industry 'landscape.'

Dressing industry will welcome giant earthquake, major reshuffle, localization

Enterprises to the market, to be blunt is to 'misappropriating money.' Why catch money at this time? Misappropriating what?

Ogilvy & Mather, Zhende, sound, count it out, are more old-fashioned industry companies, focus on this time rush to market, which is worth pondering.

Speaking, the domestic enterprises engaged in the export of medical dressings, according to the data from the Medical Insurance Association, as of 2016 there are more than 4000. Ogilvy, zhende, steady force each house, top three, the annual revenue amount is not low However, it is undeniable that the three companies face the same predicament as many other large enterprises.

The overall low-end industry, most of the high-end products are multinational giants.Outward domestic OEM to OEM, rather than independent brands, domestic brands also face strong competition from foreign brands, high-end products.

Domestic enterprises want to improve the technological content of products, develop new varieties and new materials of new materials, expand production capacity, seize the market and so on. They are short of money and lack a lot of money. At present, it is difficult for them to solve the financing obstacles by themselves.

In recent years, the export growth of medical dressings in China has also slowed down due to the impact of overseas market economic conditions, exchange rates, tariffs, anti-dumping policies and the OEM OEM forces such as those in Southeast Asia. According to data from the Medicare Chamber of Commerce The amount has dropped, the domestic business export path is no longer a good go.

In contrast, the sales revenue of medical dressing products on the Chinese market is increasing year by year, with a compound annual growth rate of more than 10% .China's market is precisely the short board of export-oriented enterprises.

Foreign trade situation is grim, optimistic about the potential of the domestic market, foreign giants engage in localization in the Chinese market to speed up infiltration, the original domestic dressing export-oriented enterprises have sought to go public, raising money to engage in research and development, expansion of production capacity ... to speed up the layout of the domestic market, but also It is an inevitable choice.

The large local companies have listed on the advantages, but also means that China's dressing market will further enhance the concentration, 'big fish eat fish' mergers and acquisitions or will be large-scale roll out the industry to speed up the reshuffle, elimination of common practice.

More than 4,000 dressing companies, the final few remaining?

At the same time, the domestic dressing market localization rate and domestic alternative import rates are also expected to be enhanced.

Medical dressing industry, the great earthquake is coming!