Medical equipment bidding volumes continue to show strong growth, with a new wave of medical device upgrades expected in 2025. As equipment renewal policies are steadily implemented, they are poised to drive long-term growth in medical equipment procurement, maintaining an "Overweight" rating on the sector. GTHT Securities recommends medical equipment companies likely to benefit from policy-driven performance recovery.
Key insights from GTHT Securities include: 1. **Sustained Growth in Medical Equipment Bidding**: - Year-over-year (YoY) data for October 2025 shows MR systems up 2.9%, CT scanners up 49.4%, DR systems up 54.4%, ultrasound devices up 59.9%, endoscopes up 11.6%, and surgical robots surging 108.9%. - Cumulative YoY growth for the first 10 months of 2025: MR systems +59.4%, CT scanners +81.6%, DR systems +77.4%, ultrasound devices +62.8%, endoscopes +24.4%, and surgical robots +42.7%.
2. **Company-Specific Performance**: - October 2025 YoY: United Imaging’s MR systems declined 5.9%, while its CT scanners grew 74.7%. Mindray’s ultrasound devices rose 61.8%, SonoScape’s ultrasound grew 54.5%, its endoscopes surged 96.6%, and Aohua endoscopes edged up 4.8%. - Jan-Oct 2025 cumulative growth: United Imaging’s MR systems +46.6%, CT scanners +59.4%; Mindray ultrasound +74.1%; SonoScape ultrasound +98.1%, endoscopes +96.5%; Aohua endoscopes +19.7%.
3. **Policy-Driven Procurement Boost**: - The 2024 joint policy by four ministries targets a 25%+ increase in healthcare equipment investment by 2027 (vs. 2023), aiming to elevate high-end device adoption to upper-middle-income country levels. - Provincial governments have rolled out large-scale procurement plans since 2024, with 2025 seeing normalized and specialized upgrades, particularly in imaging and radiotherapy equipment.
4. **Market Recovery and Structural Upgrades**: - Domestic demand rebounded as policies supported healthcare and tech innovation. United Imaging’s Q1-Q3 2025 revenue in China hit RMB 6.87 billion (+23.7% YoY), reflecting sector recovery and premiumization.
**Risks**: Potential delays in policy execution, weaker-than-expected bidding recovery, and product price volatility.