On January 4, Xue Yang, fund manager of the China-Canada Fund Active Equity Investment Department, said in the China Securities Journal that looking forward to the medical track in 2024, the blood products sector and medical equipment sector are the most optimistic.

In terms of blood products, he said that from the financial reports of leading enterprises, blood products still maintained a high boom in the third quarter of 2023. With the historical static C in the third quarter off-season inventory accumulation situation is significantly different, its supply and demand gap has not eased, and even expanding, meaning that the demand for static C may have reached an inflection point to accelerate upward. "Static C has changed from the main constraint on the growth of the blood products industry to the main driver, and the inventory turnover rate and profitability of the industry are improving, promoting the ROE of the blood products sector to enter the upward channel, which is not yet priced industry trend." Therefore, I also carried out a super matching of blood products after the release of the third quarter report." 'he said.

In terms of medical equipment, Xue Yang said that high-end medical equipment is at an inflection point in the industry. Unlike previous low-end medical equipment driven by demand, thus showing a certain cyclical, high-end medical equipment is more driven by the supply side expansion brought about by technological breakthroughs of domestic companies. Due to the prudence of medical behavior, the volume cycle of high-end medical equipment is relatively long, but the inflection point on the supply side will not end easily once it is confirmed. At the same time, in the context of the relatively excellent competition pattern of the industry, the characteristics of the same origin of medical equipment and medicine further ensure that the leading company of medical equipment has a good pattern for a long time. As a result, he believes that leading companies in high-end medical devices have longer duration value, which provides protection for their valuations.

Source: China Securities Journal · China Securities Net