Zhende Medical, a leading medical dressing company, successfully listed | Just need to grow steadily in the market

In the past few years, the medical device industry has gradually increased its support for the medical device industry, and the number of medical device manufacturers has gradually increased. As the market 'cake' grows bigger, more and more companies have come to the fore. To be stronger.

On April 12, another leading branch of the medical device branch successfully landed on the Shanghai Stock Exchange.

Zhende Medical Supplies Co., Ltd. (hereafter referred to as Zhende Medical) was listed on the Shanghai Stock Exchange on April 12 with the stock code of 603301. The IPO Zhende Medical has publicly issued 25 million new shares at a price of 19.82 yuan per share. .

Zhende Medical was established in 1994. It specializes in the production, research and development and sales of medical dressings. Its product line includes modern wound dressings, surgical control products, traditional wound care products, and pressure treatment and fixation products. According to statistics, Zhende Medical For many years, it has consistently ranked among the top three exporters of medical dressings in China. Currently, it has established a marketing network covering major global markets.

From the perspective of industry segmentation, medical dressings are low-value consumables, and they are just-needed products in medical devices. Looking at the development of primary-level medical care under the policy of grading diagnosis and treatment in China, the release of social medical care will promote domestic medical devices. The growth of the market will in particular drive the growth of demand for low-end and middle-end consumables. From the perspective of the international market, most of the domestic medical dressing companies started off with exports, and they already have a certain brand and price advantage in the international market. With the emerging markets in the future The continuous growth, still has not small development potential.

The main business of Zhende Medical is medical dressing production, R&D and sales. Currently, the company's product line has covered modern wound dressings, surgical control products, traditional wound care products, and pressure treatment and fixation products. With 7800 specifications, it is one of the most complete product line suppliers in the medical dressing field.

From 2015 to 2017, Zhende medical income was 1.021 billion yuan, 1.35 billion yuan, 13.06 billion yuan respectively, net profit was 79 million yuan, 0.83 billion yuan, 122 million yuan respectively, and the compound annual growth rate of operating income and net profit was 13.1 years. %. and 24.1%.

The total amount of funds raised by the listed Zhende Healthcare was 49.55 billion yuan. After deducting various issuance expenses, the net amount of actual raised funds was 434.2834 million yuan. The funds will be invested in the construction projects of modern wound dressings and pressure rehabilitation product lines respectively. Spinning cloth and its products production line construction project research and development center reconstruction and upgrading project information system upgrade and reconstruction construction project, spunbond non-woven fabrics and its products production line construction project.

From the perspective of the prospectus, the investment projects of the raised capital raised in this issue are all centered on Zhende Medical's main business and development strategy, and are used to expand the production lines and finished products of its core products, spunlaced nonwovens and spunbonded nonwovens. The company's production capacity has added new production lines for modern wound dressings and pressure rehabilitation products to improve product structure, enhance company R&D capabilities and product reserves, strengthen information construction, and enhance the company's market competitiveness and brand influence. After the new annual production capacity of 6.89 million bags of surgical packages, 4.7 billion pieces of non-woven fabrics, 3 billion medical wipes, the addition of modern wound dressings, sports protective gear, pockets, pressure products and other medical products with an annual capacity of 20 million, At the same time, the new foam substrate production capacity was 1.7 million square meters, which further enriched the company's product lines, optimized the product structure, and improved the company's profitability and core competitiveness.

The prospectus shows that Zhende Medical has become a manufacturing enterprise with comprehensive leading advantages in China's medical dressing industry. The company started exporting and has been ranked among the top three exporters of medical dressings in China for years. In recent years, Zhende Medical has also been actively deploying the domestic market. Domestic performance also ranks at the top of the market. In 2017, the company’s performance increased rapidly, achieving operating income of 1.306 billion yuan (+26.18%), a compound annual growth rate of 13.1% for three years, and a net profit of RMB 122 million (+46.99%). , 3-year compound annual growth rate of 24.1%. At the same time, the proportion of traditional wound care products in the main business income decreased, the proportion of surgical control products and modern wound dressings rose, and the product structure became more reasonable.

From the perspective of its subdivision, Zhende Medical has become one of the leading medical dressing companies in China. According to China medicine Health products According to statistics from the Chamber of Commerce of the Import and Export Chamber of Commerce, Zhende Medical has consistently ranked among the top three exporters of medical dressings in China for many years. In the domestic market, Zhende Medical sells through its own brands, with customers in most provinces and cities across the country, and products enter multiple medical services. Institutions and chain pharmacies have formed a stable market system.

In addition, Zhende Medical attaches equal importance to product sales and domestic sales, and has relatively high requirements on product quality and standards. At the same time, the company has completed the entire industrial chain layout, and has a raw material production line for cotton yarn, non-woven fabric, etc. in the upstream, reducing upstream Dependence of raw material manufacturers to ensure the stable production of medical dressings and improve the company's profitability; In terms of products, the company not only laid out medical dressing products, but also laid out stoma care products and sports protective gear products that complement the existing businesses. Products can share the company's existing sales channels, and play a synergistic channel.

The leading production scale brings significant cost advantages to Zhende Medical. In the procurement process, the purchase of large-scale cotton, cotton yarn and medical grey fabrics helps the company reduce procurement costs and reduce the impact of raw material price fluctuations on performance; , The company's transformation of equipment, as well as the use of some automated production equipment, improve production efficiency.

Zhende Medical is committed to becoming a first-class comprehensive medical dressing supplier in the field of health protection and medical control in China. It will continue to focus on the medical supplies industry in the future. As a whole, it will focus on the R&D, production, and sales of the medical supplies industry. Innovation, providing high-quality products and services, becoming the most reliable partner and industry leader in the field of medical supplies. At the same time, in the future, in line with the principle of maximizing shareholder's profits, we will actively seek development related to the company's main business. enterprise As the target of mergers and acquisitions, actively carry out industrial integration and continue to create new business development opportunities for the company.

From the perspective of the industry, whether it is big medical instruments Industry or medical dressings have long-term growth.

In recent years, the state has attached great importance to the medical device industry and has issued a series of policies and regulations to support it. On November 7, 2016, the "Plant Industry Development Planning Guide" jointly formulated by the Ministry of Industry and Information Technology and other six ministries and commissions officially The introduction of interventional products and medical materials has become one of the key areas of development. Implantation of interventional products and medical materials including fully degraded coronary stents, artificial joints and spine, 3D printed orthopedic implants, tissue-organ-induced regeneration and repair materials , pacemakers, implantable left ventricular assist devices, brain pacemakers, cochlear implants, dental implants, ophthalmic lenses, new dressings, degradable hemostatic materials, and medical adhesives. Accelerate the speed of product upgrading in China's medical dressing industry, and promote the rapid development of medical dressing industry in China.

In addition, the 'Health China 2020' strategic research report issued by the Ministry of Health drug , Medical consumables, medical equipment and large-scale medical equipment, etc. The Ministry of Health has launched a special national health industry project with a total value of 10 billion yuan. Among them, the Ministry of Health plans to establish 210 project funds, of which 100 projects will fund the research and development of medical consumables. 20 million yuan.

In response to the innovative development of medical devices, a number of favorable policies have been introduced in recent years. For example, the “Opinions on Reforming the Evaluation System for Drugs, Medical Devices, Examinations, and Approvals” requires the reform of medical device approval methods; Encouraging research and innovation in medical devices will have the core technology invention of the product. Patent, application for registration of innovative medical devices with significant clinical value is included in the scope of special review and approval, priority shall be given to it; timely revision of medical device standards, raising the adoption rate of international standards for medical devices, and improving the quality of domestic medical device products. Review, review and approval system reform, encourage opinions on drug and medical device innovation, reform clinical trial management, implement record management for qualification of clinical trial institution, increase clinical trial production capacity, accelerate clinical trial and review process, and strengthen the whole life cycle management of pharmaceutical medical device. The policy has great positive effects on the long-term development of China's medical device industry.

On the whole, the status quo of China's medical device export is weak in the high-end, and the low-end and middle-end enterprises have a certain position in the world. The medical device products for export are mainly low-value consumables, low-end and middle-end products, massage and health care devices, and medical consumables. Mainly, especially in medical consumables dressings, as the world's main producing areas in Asia, Europe and the United States and other countries to high-end equipment production, so China's production of medical consumables dressing in the international market has a considerable brand and price advantage.

In the country, medical resources are gradually increasing, medical insurance is strengthened, basic medical construction is accelerated, social capital is encouraged to run medical treatment, residents’ living standards are continuously improved, the number of surgeries is increasing, and the aging process accelerates. The medical dressing sales revenue exceeded 10 billion yuan, from 8.553 billion yuan in 2013 to 12.542 billion yuan in 2016, with a compound growth rate of 13.70%.

In fact, most medical dressing enterprises in China started to export, gradually relying on exports to form scale advantages, and built a complete production line and a sound quality management system. The quality of products has reached the world's leading level. With the advantages of human cost and industrial chain advantages, China has become The world's largest exporter of medical dressings.

Affected by the global economic downturn and currency exchange rate fluctuations, the export value of medical dressings in China has declined. In 2016, the value of China's medical dressing industry exports was US$2.357 billion. According to the China Medical Insurance Association 2017 China Medical Device Trade Data Yearbook, 2016 China The amount of medical dressings exported was US$2.357 billion, a year-on-year decrease of 9.87%. At the same time, with the popularization of wound care concepts and the increase in residents' health care spending, the demand for domestic wound dressings is increasing. 2013- 2016, China Wound Care The sales revenue of dressings increased from 8.533 billion yuan to 12.542 billion yuan, a compound growth rate of 13.7%, and the market size is expected to reach 23.833 billion yuan by 2021.

Data show that from 2013 to 2016, the global wound dressing medical dressing market had sales of approximately US$110 to US$12.3 billion. The number of operations increased, and investment in emerging countries (Brazil, the Middle East, etc.) continued to increase, facilitating market growth and other favorable factors. The impact of the global wound care medical dressing market is in an expansion phase.

Combining the global aging population increase, per capita life expectancy, and emerging markets are far from saturated and other factors, it is expected that the global medical device market will continue to develop at a growth rate of around 5.5%.