Mindray Medical Back A: R&D investment into the development of medical equipment

After the twists and turns of the medical network on July 26, Mindray Medical, which is known as the medical device 'Huawei', successfully passed the meeting yesterday, becoming the second Chinese stock to return to A shares through IPO after the drug Mingkang. Previously, in 2006, Mindray Medical is listed on the New York Stock Exchange. On March 6, 2016, Mindray Medical completed the privatization delisting for US$3.3 billion.

After the listing of Shenzhen Mindray Medical, if it is currently raised by 6.34 billion yuan, it is expected to surpass the Ningde era. Start a business The largest IPO fundraising company, easy to enter the GEM '100 billion market value club.

Mindray Medical products cover three categories of life information and support, in vitro diagnostics and medical imaging. 'With Mindray's 2017 profit of over 2.6 billion, the profit of 2018 is over 3 billion. Even if it is calculated according to 30 times price-earnings ratio, it can be easily Over 100 billion market value. In the short term, the impact of vaccine events on the fluctuation of the pharmaceutical market is limited. The pharmaceutical sector belongs to the just-needed industry, and the overall situation is very optimistic. 'Guangzhou Hengsheng Pharmaceutical Industry Team Leader Tang Aijin told the 21st Century Business Herald on the 25th.

Another pharmaceutical investor also told reporters on the 25th: 'The vaccine incident will not have a greater impact, but for Mindray, the timing of the listing can be as high as its market value, and it will still have an impact.'

Mindray Medical has 57 wholly-owned or holding subsidiaries, including 17 domestic subsidiaries and 40 overseas subsidiaries. The products are exported to more than 190 countries and regions. The overseas sales revenue in 2015-2017 was 430,437,800 yuan, 451,564.54. Ten thousand yuan and 514,252,200 yuan, accounting for 53.72%, 50.00% and 46.02% of the current operating income. The future development of the company depends largely on the international market.

In the field of medical devices, Mindray still has a big gap with international giants.

The medical device industry has a high correlation with the policy environment and is vulnerable to policy. In addition, Sino-US trade friction has become a place for outsiders to question Mindray's future development. The data shows that Mindray's sales to the US account for the proportion of operating income. It is 15.49%, 15.25% and 12.88%.

Close to Mindray medical personnel on the 25th analysis of 21st Century Business Herald reporters, for the possible risks of trade friction, Mindray's response measures mainly focus on the US market, can increase sales prices to some extent, transfer some tariff costs. Second, strengthen scientific research Invest, increase product added value, reduce the impact of tariffs on the company's product profitability. And continue to strengthen the expansion of the market outside the United States.

According to EvaluateMedTech's "Global Medical Machinery Market Overview 2017 and Global Medical Device Market Forecast for 2022", the world's top three medical device companies Medtronic, Johnson & Johnson, and Siemens' sales in 2016 were $29.7 billion, $25.1 billion and 150, respectively. One hundred million U.S. dollars.

According to Wind database statistics, 25 A-shares under the 'Wind Healthcare Equipment' industry classification

In 2016, the company's R&D expenditure totaled 1.727 billion yuan, and the average R&D expenditure was 690.85 million yuan. The total R&D expenditure of 25 listed companies accounted for 5.20% of the total business revenue. Compared with the leading international medical device companies, only Medtronic 2016 The investment in research and development has exceeded 2 billion euros.

China's medical device enterprises generally lack investment in R&D, severely restrict independent innovation, and market competitiveness is weak.

According to the prospectus, in 2015-2017, Mindray Medical's operating income was 8.013 billion yuan, 9.032 billion yuan and 11.174 billion yuan, respectively, with a two-year increase of 12.34% and 23.72%. In terms of net profit attributable to shareholders of the parent company, During the reporting period, it was 910 million yuan, 1.6 billion yuan and 2.59 billion yuan respectively. The growth rate in the past two years was 75.82% and 61.88%, respectively, nearly double the growth rate.

In Mind Medical, R&D investment accounted for 12.33%, 12.06%, 10.13% in 2015-2017, and the expenses were 988 million yuan, 1.89 billion yuan and 1.132 billion yuan respectively. Despite the year-on-year decline, The total cost is on the rise and higher than the industry average.

'Merui Medical's advantages in the field of medical devices are mainly reflected in the perfect coverage, continuous investment in scientific research, and continuous product line. The medical device industry is different. drug There are many subdivisions, 'difficult to hit', and the ceiling is low. The sales channels and logic of different equipment are different. Enterprises want to form core competitiveness to continuously increase the coverage area, and constantly improve their ceilings, reduce Homogeneous competition and over-reliance on marketing. ' medicine Industry investors told reporters.

At present, China's pharmaceutical industry has not yet formed a complete monopoly pattern. Compared with the pattern of US medical device giants, the industry concentration is still low.

In view of the small scale of the overall investment in R&D funds of domestic medical device companies, there is a significant difference between them and the leading companies in the same industry. Yan Tingyou, president of the Shenzhen M&A Association, told the 21st Century Business Herald on the 25th: 'Medicine Devices Industry, China In addition to the short-term R&D investment, the gap with the international market still has insufficient precision. There is a lack of long-term stability test in China, and there is a short-term in terms of product life.

'Different from other industries, medical devices have many subdivisions and many features of technological upgrading.' The above-mentioned medical investors told reporters that Mindray’s early development is also proxy At the beginning, the company continued to develop new products and formed barriers to improve its product line. medical instruments In terms of investment, marketing ability is the foundation. In the long run, we will look at R&D and product lines. Mindray has its own marketing network, and the issues that need to be concerned about long-term development are focused on R&D investment.

'If pharmaceutical companies reduce their investment in research and development after listing, it will be very difficult to catch up in a few years. There are 3-5 years, even 5-10 years of product development cycle. Once the R&D investment has an empty window, It’s hard to catch up. '姒亭佑 said.