Zheshang Securities: The medical device sub-sector is intertwined with multiple factors, and the low-value consumables sector has performed brilliantly

The Zhitong Finance App learned that Zhishang Securities released a research report saying that looking ahead to the second half of 2026, the bank believes that the external development environment and internal development logic of the medical device sub-sector are slightly different, and multiple factors are intertwined. It is recommended to focus on: ① stock price adjustments have been sufficient, and performance has reached an inflection point; ② medical equipment companies that are being driven by the resumption of in-hospital bidding and continued overseas travel; ③ medical consumables companies with innovative cross-border layouts and continuous product implementation.

The main views of Zheshang Securities are as follows:

Sector review: Overall, it is still low, with low-value consumables leading the way

Trading has resumed since 2020: Although medical device valuations recovered in the first half of 2026, driven by the continuous recovery of bidding since 2026, an inflection point in the performance of some companies, maintaining a high level of prosperity when going overseas, and continued catalyzing innovation policies, etc., overall, medical device valuations are still relatively low in history.

Trading has resumed since 2026: Low-value consumables may benefit from the increase in glove prices, leading various sub-sectors, and outperforming the Shanghai and Shenzhen 300 and Pharmaceutics (Shenwan) Index. Other sub-sectors are still bottoming out at a low level, and stock prices are ready to go.

Fundamental review: The revenue side has all resumed growth, but the profit side is divided

Growth: All sub-sectors of medical devices have resumed positive growth, and the low-value consumables sector has performed well. Among them, 1H26's revenue from the low-value consumables, household medical equipment and medical equipment sector achieved a year-on-year increase of more than double digits, while low-value consumables achieved YOY +20.1% growth due to oil price increases.

Gross profit margin: The gross margin of low-value consumables has increased significantly (+7.2pct), or other sectors have not fluctuated much due to obvious improvements in glove prices; the overall three fees have declined, but sector differentiation: Thanks to the improvement in the overall cost control capacity of the industry, with the exception of the household medical equipment sector, all three fees in other sub-sectors have declined. Household medical equipment may have increased significantly due to the launch and promotion of new products;

Net interest rate: Compared with 1H25, the net profit margin level of 1H26IVD and the low-value consumables sector increased significantly, or due to the low base effect. The net profit of other sub-sections is heavily influenced by factors such as foreign exchange gains and losses

Operating capacity: The receivables turnover ratio of the household medical sector, IVD, and the low-value consumables sector has all increased. Considering that the inventory turnover rate and asset turnover ratio remain stable, the ROE of the IVD and low-value consumables sectors has increased.

Marginal changes: Since 2026, the stock prices of A-share cross-border innovation companies have increased significantly, and the overall pressure on H shares is under pressure.

Risk warning: risk of product development and commercialization falling short of expectations, risk of increased industry competition, risk of uncertain policies