The Zhitong Finance App learned that in the context of increased market volatility, the proposal was to balance bottom defense and growth flexibility, pay more attention to performance certainty, medium- and long-term growth space and risk manageability, and focus on four main lines: (1) high-quality leaders with gradual confirmation at the bottom, strong management resilience, steady cash flow, and steady growth in performance; (2) the IVD sector where policy expectations are marginally mitigated and fundamentals and valuation are expected to be repaired; (3) the IVD sector where the overseas territorial operation system is gradually maturing and entering a stage of continuous rapid growth; (4) Outstanding medical technology attributes, A target that is resilient to growth.
The main views of Zhongtai Securities are as follows:
Domestic negative factors continue to be digested, revenue in the equipment sector has been steadily recovered, and the scope of profit improvement has been further expanded
The revenue of listed medical device companies in the first three quarters of 2026 was 20.312 billion yuan, up 8.22% year on year, after deducting non-net profit of 23.899 billion yuan, up 10.92% year on year. The different sub-sectors are clearly differentiated, with revenue growth rates from high to low value consumables (+18.45%), medical equipment (+9.60%), high-value consumables (+2.06%), and in vitro diagnostics (+1.83%); after deducting non-net profit, the growth rate from high to low was for low-value consumables (+70.37%), in vitro diagnostics (+60.63%), medical equipment (-2.03%), and high-value consumables (-3.25%). Among them, low-value consumables are still mainly driven by glove volume and price resonance and low base. Revenue from non-gloves varieties continued to grow, and profits in the first three quarters were still under pressure, but there was a slight improvement in Q3; demand for medical equipment recovered and the revenue side maintained rapid growth; profits in the first three quarters were still under pressure but improved year-on-year in Q3; revenue from high-value consumables remained steady, and innovative product sales and overseas expansion continued to increase; in vitro diagnosis revenue margins stabilized, and conventional IVD revenue and profits continued to recover after ICL was excluded.
Revenue continued to recover in 2026Q3, and all four major sub-sectors achieved positive growth after deducting non-net profit
In 2026Q3, the overall revenue of the medical device sector increased 9.00% year on year, and after deducting non-net profit, increased 24.92% year on year. The revenue growth rate of the four core sub-sectors from high to low was low value consumables (+20.75%), medical equipment (+8.40%), in vitro diagnosis (+2.56%); after deducting non-net profit, the growth rate from high to low was in vitro diagnosis (+130.82%), low-value consumables (+75.86%), high-value consumables (+11.36%), and medical equipment (+4.73%). Low-value consumables continue to be driven by the glove boom, and the high increase in in-vitro diagnosis profits still contributed by a low ICL impairment base; the profit growth rate of high-value consumables and medical equipment changed from negative to positive, and the scope of sector profit improvement was further expanded.
High-value consumables: price reshaping enters the second half, and innovation, volume and globalization open up room for growth
The sector's revenue remains steady, and the profit side is still divided between individual stocks. Revenue from the high-value consumables sub-sector increased 2.06% in the first three quarters of 2026, and net profit decreased 3.25% year on year; revenue in the 2026Q3 sector increased 2.56%, and net profit increased 11.36%. Profit improvements in a single quarter were mainly driven by gradual digestion due to early collection, release of some innovative products, and marginal easing of expenses and exchange disturbances. However, gross profit margin and net interest rate still declined slightly year-on-year, indicating that the sector has yet to fully recover. On the policy side, the results of the national organization's collection of drug-coated balloon consumables have been implemented one after another since May 2026; the seventh batch of national high-value consumables has focused on digestive intervention consumables, and confirmation of the agreed procurement volume has officially started; and continuous collection of cardiac electrophysiology is also underway. In the context of normalization of price governance, leaders with innovative iteration, cost control and globalization capabilities are expected to increase their share after price restructuring.
Medical equipment: demand for equipment is gradually recovering, new business volumes drive revenue growth, and profit recovery is still fragmented
In the first three quarters of 2026, the revenue of the medical equipment sub-sector increased by 9.60%, and net profit decreased 2.03% year on year; revenue in the 2026Q3 sector increased by 8.40%, and net profit increased by 4.73%. The revenue side is mainly driven by the growth of companies such as Lianying Medical, Yirui Technology, and Kefu Healthcare, and new businesses such as high-end imaging equipment, household medical devices, and silicon-based micro display backpanels contributed to the increase. On the profit side, profits of some weighted companies were under pressure in the first three quarters, compounding the effects of exchange and expense investment, and the sector's profit performance was weaker than revenue; in Q3, as revenue scale expanded, cost efficiency improved, and the incremental release of technology business, net profit after deducting positive growth, but individual stock differentiation was still quite obvious.
Low-value consumables: Glove boom continues, non-glove varieties begin profit recovery
Resonance in the volume and price of gloves is still the main driver of high growth in the sector. Revenue from non-gloves varieties has continued to grow, but profit recovery is still weak. In the first three quarters of 2026, the revenue of the low-value consumables sub-sector increased by 18.45%, after deducting non-net profit by 70.37%; in the 2026Q3 sector, revenue increased by 20.75%, after deducting non-net profit by 75.86%. The glove sector continues to benefit from improved prices, increased capacity utilization and a low base. Excluding the three glove companies of British Healthcare, Lanfan Medical, and Zhonghong Medical, the rest of the sample's revenue increased 6.22%, net profit decreased 3.21% in the first three quarters, 2026Q3 revenue increased 8.74%, and net profit increased 2.78%, indicating that the revenue side of non-glove varieties continued to recover, profit margins improved marginally, and some companies were still affected by collection price cuts, exchange, and cost investment in the first three quarters. In the medium to long term, overseas is still the main driving force for the growth of low-consumption enterprises, and enterprises with cost, production capacity, and customer stickiness are more likely to achieve simultaneous growth in revenue and profit.
In vitro diagnosis: policy disturbances are gradually digested, and innovative trips abroad support medium- to long-term recovery
Revenue growth has improved quarterly, and high profits have contributed to the low base of ICL impairment, and conventional IVD continued to be repaired even after the impact of package disassembly weakened. In the first three quarters of 2026, the in vitro diagnostic sector revenue increased by 1.83%, net profit increased by 60.63%, 2026Q3 revenue increased 4.99%, and net profit increased 130.82%. The profit side is still affected by the reduction or reversal of COVID-19 impairment accruals such as Dean Diagnosis and Jinyu Medical. After unifying the four ICL samples of Dian Diagnosis, Jinyu Medicine, Lanwei Medicine, and CapBiotech, revenue increased 4.26%, net profit increased 11.33% in the first three quarters, 2026Q3 revenue increased 7.78%, and net profit increased 70.05%. The rapid increase in profit was mainly due to Sannuo Biotech's patent settlement fees in the same period last year. After excluding Sannuo Biotech, revenue increased 7.56% and net profit increased 51.33%. Regular IVD profits continued to recover. On the price side, the subsequent implementation of the testing medical service price project guidelines may still put pressure on some reagent varieties that have not yet been collected, but drafts soliciting comments from Anhui, Jiangxi, Zhejiang and other places show that the overall price reduction was moderate compared to market expectations. In the medium to long term, we are optimistic about IVD's continued innovation and growth overseas.
Pan-tech: policy, clinical and industrial progress resonate, medical technology enters the commercial verification stage
In terms of brain-computer interfaces, the standard system, financing, and clinical registration are progressing simultaneously, and Neuralink, Ladder Healthcare, BrainTiger Technology, and Borikang have continued to make new progress; payment routes for surgical robots have been gradually straightened out, and domestic companies have made simultaneous breakthroughs in domestic commercialization and overseas clinical trials; and the registration review framework for AI medical care has been further improved. In terms of the transformation of traditional device technology, the relevant targets have been adjusted since September due to changes in market style, but the industrialization process is still progressing: new Haitai Xinguang endoscope products have entered small-batch trial production, isolators have received batch orders and began small-batch delivery. OCS is still in the engineering iteration period, but the prototype has received industry attention; Yirui Technology's silicon-based micro display backplane has entered batch delivery and increased performance; Linuo Pharmaceutical has continued to promote glass substrate sampling and process verification. Market adjustments do not change the trend of industrialization.
Risk warning: risk of product marketing not meeting expectations; risk of policy changes; risk of industry data being screened and classified, which may deviate from the actual situation in the industry; risk of untimely updating of research information, etc.