Summary of Key Points Core Viewpoint - The financing balance of the Sci-Tech Innovation Board decreased by 2.251 billion yuan compared to the previous day, with 71 stocks seeing an increase of over 10 million yuan in financing balance, led by Tianyue Advanced, Yuanjie Technology, and Aters [1][5]. Financing Balance Overview - As of January 20, the total margin financing balance of the Sci-Tech Innovation Board was 294.585 billion yuan, a decrease of 2.270 billion yuan from the previous trading day [5]. - There are 504 stocks with a financing balance exceeding 100 million yuan, including 62 stocks with balances over 1 billion yuan [5]. - 267 stocks saw an increase in financing balance compared to the previous day, with 71 stocks having net purchases exceeding 10 million yuan [5]. Stocks with Significant Financing Changes - The stocks with the highest net purchases include Tianyue Advanced (1.255 billion yuan, up 98.0536 million yuan), Yuanjie Technology (1.598 billion yuan, up 96.1215 million yuan), and Aters (1.286 billion yuan, up 88.0648 million yuan) [2][6]. - The average decrease in financing balance for stocks that saw a reduction was significant, with 112 stocks decreasing by over 10 million yuan, led by Lanke Technology, Han's Laser, and Haiguang Information [5]. Sector Performance - Among the stocks with net purchases exceeding 10 million yuan, the average decline was 0.50%, with notable increases in stocks like Qizhong Technology (up 16.32%), Yingjixin (up 12.24%), and Hangya Technology (up 10.37%) [6]. - The sectors attracting the most interest from financing clients include electronics, machinery, and power equipment, with 23, 11, and 10 stocks respectively [6]. Financing Balance to Market Value Ratio - The average ratio of financing balance to market value for the stocks with significant net purchases is 4.34%, with Aisen Co. having the highest ratio at 9.51% [6].

Group 1 - The core viewpoint of the news highlights the positive performance of the medical device sector, with significant stock price increases for various companies and a favorable market outlook driven by new pricing policies and international trade initiatives [1][2][3] Group 2 - As of January 21, the Shanghai Composite Index rose by 0.22%, while the medical device index increased by 0.69%, with notable stock performances from Tianzhihang-U (+13%), Sanyou Medical (+7%), and others [1] - The medical device ETF (562600) saw a 0.77% increase, with a trading volume of 254.268 billion yuan and a turnover rate of 4.15%. Over the past six months, the fund has gained 4.80%, and 11.30% over the past year [1] Group 3 - On January 20, the National Healthcare Security Administration issued guidelines for pricing medical services related to surgical robots and remote surgeries, establishing a structured pricing system to enhance innovation returns and improve accessibility to precision medicine [2] - A special seminar was held on January 17 to discuss how to leverage the medical device procurement and pricing platform to support the international expansion of Chinese medical devices, with plans for a cross-border channel based on procurement platforms in Guangxi and Tianjin [2] Group 4 - Multiple authoritative institutions have expressed optimism about the medical device sector, with expectations for a turning point in operations by 2026 due to optimized procurement rules and significant growth potential in domestic and international markets for surgical robots and AI medical technologies [3] - The medical device ETF (562600) tracks the CSI All Index for medical devices, with the top ten weighted stocks accounting for 45.04% of the total, including major players like Mindray Medical and United Imaging [3]

Summary of Conference Call Notes Industry Overview - The medical devices industry in China is expected to face ongoing pricing pressures in 2026, particularly for in vitro diagnostics (IVD) players, although some recovery in medical equipment sales is anticipated. Niche consumable segments may benefit from value-based pricing (VBP) and globalization trends [1][2][3]. Company-Specific Insights Imeik Technology Development Co Ltd (300896.SZ) - **Rating Downgrade**: Imeik has been downgraded from Equal-weight (EW) to Underweight (UW) with a price target (PT) maintained at Rmb130. The downgrade is attributed to intensifying competition, soft domestic demand, and weakening bargaining power, leading to persistent pricing and margin pressures on its core products, Hearty and CureWhite [3][4][32]. - **Sales Forecast**: A projected 20% year-over-year (YoY) sales decline for 2025 is expected, with 4Q results likely flat quarter-over-quarter (QoQ) due to higher selling, general, and administrative expenses (SG&A). A recovery to high single-digit growth is anticipated in 2026, supported by stable legacy products and contributions from new products like Hutox [3][33][34]. - **Valuation Concerns**: The stock is trading at approximately 29 times the estimated earnings per share (EPS) for 2026, which is considered full given the low-teens growth outlook and limited visibility due to macroeconomic and competitive challenges [3][34][37]. Mindray Bio-Medical Electronics Co Ltd (300760.SZ) - **Revenue Decline**: Expected to post a 9% YoY revenue decline for 2025, with a modest recovery anticipated in 2026. The net profit is also projected to decline by double digits in 2025 [8][10]. United Imaging Healthcare Co (688271.SS) - **Sales Growth**: Anticipated to achieve over 20% sales growth in 2025, with net profit growth expected to exceed 40-50% due to a low profit base in 2024 [8][10]. APT Medical Inc (688617.SS) - **Growth Projections**: Expected to see approximately 24% overall sales growth and 28% net profit growth in 2025, with strong performance in 4Q [11][19]. Zylox-Tonbridge Medical Technology Co (2190.HK) - **Market Position**: Likely to benefit from VBP tailwinds in neuro and peripheral intervention devices, with potential upside surprises in sales growth [12][19]. Peijia Medical Ltd (9996.HK) - **Revenue Expectations**: Projected TAVR revenue for 2025 is estimated to be below Rmb300 million due to a voluntary product shipment delay [13][19]. Angelalign Technology Inc (6699.HK) - **Performance Outlook**: Expected to outperform targets due to resilient growth in China and lower costs [8][19]. Key Trends and Risks - **Market Dynamics**: The medical device tender value rebounded by 30.1% YoY in 2025, approaching 2022 levels, indicating a recovery in various categories despite challenges in IVD analyzers [25][26]. - **Competitive Landscape**: Increasing competition in the dermal filler market is noted, with Imeik facing challenges from new product launches and changing market dynamics [32][37]. - **Regulatory Environment**: Updates on VBP implementation and pricing strategies are critical for future performance, particularly for companies like Imeik and Peijia [15][34]. Conclusion The medical devices industry in China is navigating a complex landscape characterized by pricing pressures, competitive challenges, and varying growth prospects across companies. Imeik Technology's downgrade reflects broader concerns about market dynamics and profitability, while other companies like United Imaging and APT Medical show potential for growth amidst these challenges.

Group 1 - Shanghai Jiading is establishing a high-end medical device industry cluster, promoting a dual empowerment of medical services and industrial development [1] - The "Shanghai Medical Valley" industrial park has attracted over 60 biopharmaceutical companies, with a projected total output value of 700 million yuan in 2024 [1] - A new model of industry-medical integration has been created, involving collaboration with Shanghai Jiao Tong University to support the transformation of medical and engineering innovations [1] Group 2 - The first domestically produced proton therapy system has been put into clinical use, treating over 1,000 patients with a maximum treatment cost of 170,000 yuan, which is 15% to 20% lower than imported equipment [2] - The "Union Medical-Jiading Regional Imaging Center" has been established to enhance grassroots medical imaging capabilities, addressing shortages in diagnostic physicians and improving service quality [2] - A digital twin management platform for high-value medical imaging equipment has been created, optimizing workflows and improving patient experience through real-time data monitoring [2] Group 3 - The "Jiading Model" is a practical implementation of the national hierarchical diagnosis and treatment system, promoting high-quality development of public hospitals and the entire chain of high-end medical equipment [3] - This model has been successfully implemented in nearly 400 projects across 31 provinces and cities, covering over 3,000 hospitals and serving nearly 200 million people [3] - The model is being promoted to countries and regions involved in the Belt and Road Initiative, including Indonesia, Brazil, and Africa [3]

Core Viewpoint - The stock of United Imaging Healthcare (688271) has shown a slight decline, with a closing price of 131.93 yuan on January 20, 2026, down by 1.81% [1] Financial Performance - For the first three quarters of 2025, United Imaging Healthcare reported a main revenue of 8.859 billion yuan, an increase of 27.39% year-on-year [2] - The net profit attributable to shareholders reached 1.12 billion yuan, up by 66.91% year-on-year [2] - The non-recurring net profit was 1.053 billion yuan, reflecting a significant increase of 126.94% year-on-year [2] - In Q3 2025 alone, the company achieved a main revenue of 2.843 billion yuan, a remarkable rise of 75.41% year-on-year [2] - The net profit for Q3 2025 was 122 million yuan, showing an increase of 143.8% year-on-year [2] - The non-recurring net profit for Q3 2025 was 87.6141 million yuan, up by 126.24% year-on-year [2] - The company's debt ratio stands at 30.08%, with investment income of 606.847 million yuan and financial expenses of -438.233 million yuan [2] - The gross profit margin is reported at 47.02% [2] Market Activity - On January 20, 2026, the net inflow of main funds was 18.2237 million yuan, accounting for 1.53% of the total transaction amount [1] - Retail investors experienced a net outflow of 1.5584 million yuan, representing 0.13% of the total transaction amount [1] - Over the past 90 days, 25 institutions have rated the stock, with 18 buy ratings and 7 hold ratings [2] - The average target price set by institutions over the past 90 days is 17.635 billion yuan [2]

Group 1 - The core viewpoint of the news is that the Medical ETF (512170) has experienced a decline of 1.61%, with the latest price at 0.366 yuan and a turnover rate of 2.25% [1] - The Medical ETF closely tracks the CSI Medical Index, which includes companies involved in medical devices, medical services, and medical information technology [1] - The latest scale of the Medical ETF is 26.117 billion yuan, with a total of 70.245 billion shares, indicating an increase of 524 million yuan in fund size over the past month [1] Group 2 - As of the previous trading day, the Medical ETF (512170) saw a net inflow of 26.1418 million yuan [2] - The top ten weighted stocks in the CSI Medical Index include WuXi AppTec, Mindray Medical, United Imaging Healthcare, Aier Eye Hospital, Kanglong Chemical, Tigermed, Lepu Medical, Yuyue Medical, New Industry, and Meinian Onehealth [2]

Summary of China Healthcare Conference Call Industry Overview - **Industry**: China Healthcare - **Survey**: AlphaWise survey conducted with 80 hospital executives in November 2025, focusing on hospital capital expenditures (capex), procedure volumes, and brand preferences for 2026 [1][26] Key Findings Hospital Capex Outlook - **Cautiously Optimistic**: 59% of hospital executives expect higher capex in 2026, up from 43% in 2025, but still below 85% in 2024 [3][51] - **Expected Growth**: Average capex growth projected at 4.7% YoY for 2026, compared to 3.0% for 2025 [3][51] - **Actual Growth in 2025**: Estimated capex growth for 2025 was 5.8% YoY, indicating better-than-expected performance [3][51] - **Key Drivers**: Hospital surplus (69%), patient demand (50%), and local fiscal budgets (44%) are primary factors influencing capex decisions [31] Equipment Spending Trends - **Top Equipment Categories**: Surgical and soft endoscopes expected to see the highest unit growth at 26% and 16% respectively, followed by CT, ultrasound, and CLIA analyzers with high-teens growth [32][93] - **AI and Digitization**: AI, digitization, and cloud capabilities are the top investment priorities, with 84% of executives planning to increase spending in these areas [33][78] Brand Preferences and Market Dynamics - **Domestic Brands**: Mindray and United Imaging maintain strong positions in brand preference, with Mindray expected to gain share in surgical endoscopes and ultrasound [36][38] - **Foreign Brands**: Siemens Healthineers, GE Healthcare, and Philips show mixed performance, with potential share losses due to domestic competition [17][19][20] - **Market Shifts**: United Imaging is expected to gain significant share in CT and MR equipment, while Mindray is anticipated to strengthen its position in various categories [38] Pricing and Procurement - **Pricing Pressures**: Continuous pricing pressure expected in clinical testing, negatively impacting the IVD segment [10][42] - **Procurement Changes**: Increased expectations for centralized procurement and shorter tender cycles, which could lead to downward pricing pressures [30][61][62] Procedure Volume Expectations - **Moderating Growth**: Only 17% of executives expect growth in procedure volumes, down from 31% in the previous year, primarily due to budget constraints [39] - **Specialty Procedures**: Expected growth across major specialties is clustered in the mid-single-digit range, indicating stable demand [40] Stock Implications - **Positive Outlook for Certain Companies**: - **Mindray**: Expected to recover to positive revenue growth in 2026 due to stable capex environment [11] - **United Imaging**: Positioned to benefit from high-end imaging demand [12] - **APT Medical**: Anticipated to capture growth in cardiac ablation procedures [14][15] - **Zylox-Tonbridge**: Expected to see growth in neuro and peripheral intervention procedures [16] Risks and Challenges - **Market Uncertainty**: Hospital executives express caution regarding capex decisions, with procurement timing expected to be back-loaded into the second half of 2026 [68] - **Regulatory Pressures**: Ongoing regulatory scrutiny and tighter budgets continue to pose challenges for lower-tier hospitals [56] Conclusion The 2026 outlook for the China healthcare sector is cautiously optimistic, with expected growth in hospital capex and a focus on advanced medical technologies. However, challenges such as pricing pressures and market competition from domestic players remain significant factors influencing the landscape.

Core Insights - The article discusses the recent meeting held by the National Healthcare Security Administration (NHSA) in Beijing, focusing on how to better utilize the medical insurance drug and device procurement platform to support the international expansion of Chinese pharmaceuticals and medical devices [1] - Chinese innovative pharmaceuticals and medical devices are gaining recognition in developed markets like Europe and the US, establishing a strong "China Creation" label in the global healthcare sector [1] Regulatory Support - The rapid development of China's pharmaceutical and medical device industry is attributed to the support from regulatory bodies, which have optimized approval processes and established quality standards aligned with international norms [2] - NHSA's Director Wang Xiaoning emphasized the importance of improving mechanisms, innovating methods, and promoting system collaboration to support the internationalization of Chinese pharmaceuticals [2] Pricing and Evaluation Systems - NHSA is working on a unified medical service pricing system to facilitate patient reimbursement and remove barriers for innovative medical technologies [3] - The establishment of the China Drug Price Registration System aims to provide a transparent pricing framework for Chinese drugs in international markets, enhancing their competitiveness [3][8] International Collaboration - Various government departments, including the Ministry of Industry and Information Technology and the Ministry of Commerce, are implementing policies to enhance the international competitiveness of the pharmaceutical industry [5][6] - The National Medical Products Administration is reforming drug lifecycle supervision to stimulate innovation and facilitate international market entry for Chinese drugs [7] Company Strategies - Companies like Heng Rui Medicine and United Imaging Healthcare are exploring diverse paths for international expansion, focusing on core technology development and strategic partnerships [10][11] - Heng Rui Medicine has established a significant presence in over 40 countries, leveraging a collaborative model to enhance its international footprint [10] - United Imaging Healthcare emphasizes a comprehensive approach to internationalization, integrating R&D, production, and service to adapt to local markets [11] Future Directions - NHSA plans to enhance the international procurement model for medical devices and pharmaceuticals, focusing on regional advantages and tailored development strategies [8] - The China Drug Price Registration System is expected to play a crucial role in providing a "price passport" for innovative drugs, facilitating their entry into global markets [9]

Investment Rating - The report maintains an "Outperform" rating for several companies, including Jiangsu Heng Rui Medicine, Hansoh Pharmaceutical Group, 3SBio, Sichuan Kelun Pharmaceutical, and Jiangsu Nhwa Pharmaceutical [6][7]. Core Insights - The annual J.P. Morgan Healthcare Conference concluded successfully, with positive information from global pharmaceutical companies, including new pipeline disclosures and major deals. The report highlights the high prosperity in the innovative drug sector and recommends continuous investment in innovative drugs and the industry chain [25][26]. - The A-Shares pharmaceutical sector underperformed the market in the third week of January 2026, with the Shanghai Composite Index falling by 0.4% and the SW Pharmaceutical and Biological sector declining by 0.7% [8][27]. - The Hong Kong stock pharmaceutical sector performed in line with the market, while the U.S. pharmaceutical sector underperformed. The Hang Seng Healthcare index increased by 2.4%, and the S&P 500 Healthcare Select Sector decreased by 1.1% [28]. Summary by Sections Section 1: Continuous Recommendation of Innovative Drugs and Industry Chain - The report emphasizes the high prosperity of innovative drugs and maintains overweight ratings for key pharmaceutical companies. It also recommends Biopharma/Biotech companies with promising pipelines and volume increases, as well as CXO and upstream companies benefiting from innovation [6][25]. Section 2: A-Shares Pharmaceutical Sector Performance - In the third week of January 2026, the A-Shares pharmaceutical sector's performance was ranked 17th among Shenwan primary industries, with a decline of 0.7%. The medical service sub-sector showed a positive performance of +3.3% [8][12][27]. Section 3: Hong Kong and U.S. Pharmaceutical Sector Performance - The Hong Kong pharmaceutical sector performed similarly to the market, while the U.S. sector underperformed. Notable gainers in the U.S. included MODERNA (+22%) and QUEST DIAGNOSTICS (+9%), while major decliners included BIOGEN (-12%) and BOSTON SCIENTIFIC (-10%) [28].

Investment Rating - The report maintains an "Overweight" rating for the pharmaceutical sector [6][26]. Core Insights - The report emphasizes the continuous recommendation of innovative pharmaceuticals and medical devices, highlighting the high growth potential in the sector. It maintains "Overweight" ratings for companies such as Heng Rui Medicine, Hansoh Pharmaceutical, Sanofi, Kelun Pharmaceutical, and Enhua Pharmaceutical. It also recommends Biopharma/Biotech companies like Kelun Biotech, BeiGene, and others, as well as CXO and upstream pharmaceutical companies [6][3]. Summary by Sections 1. Continuous Recommendation of Innovative Pharmaceuticals and Medical Devices - The report highlights the high growth potential of innovative drugs and recommends several companies for investment, including Heng Rui Medicine, Hansoh Pharmaceutical, Sanofi, Kelun Pharmaceutical, and Enhua Pharmaceutical. It also suggests Biopharma/Biotech companies like Kelun Biotech, BeiGene, and others, as well as CXO and upstream pharmaceutical companies [6][7]. 2. A-share Pharmaceutical Sector Performance - In the third week of January 2026, the A-share pharmaceutical sector underperformed the broader market, with the Shanghai Composite Index declining by 0.4% and the SW Pharmaceutical and Biotech index falling by 0.7% [8][11]. 3. Hong Kong and US Market Performance - The Hong Kong pharmaceutical sector performed in line with the market, while the US pharmaceutical sector underperformed. In the same week, the Hang Seng Healthcare index rose by 2.4%, and the S&P 500 healthcare sector fell by 1.1% [19][20].