Information Details
The "Pearl" in the field of medical devices - Endoscopy
2023/08/24
Introduction to electronic endoscopy
Endoscope (also known as "endoscope") is a professional medical equipment integrating image sensor, optical lens, illumination source, mirror device and other components, according to whether the lens body is bendable, it can be divided into flexible endoscope (referred to as "soft mirror") and rigid endoscope (referred to as "hard mirror"). Electronic endoscope is a kind of medical equipment integrating precision processing and manufacturing, image processing algorithms, software development and application, optical system design and other technologies.

(Source: Aohua Endoscopy Prospectus)
Rigid and flexible endoscopes industry chain analysis:

(Data source: Haitai Shinkong Prospectus)
Endoscopy market
The global endoscope track is highly robust, with a CAGR of about 10% over the next 7 years. According to Frost & Sullivan, the global medical endoscopy market was valued at $2020.203 billion in 2020. With the global trend of minimally invasive surgery and the increase in the popularity of early screening, the global endoscopy market is expected to grow at a compound growth rate of about 2030% from 7 to <>.

Domestic endoscopy belongs to the initial rapid development stage, and it is expected to grow at a compound rate of about 5% in the next 12 years. Domestic minimally invasive surgery is on the rise, according to Frost & Sullivan's data, the domestic medical endoscope market size was 2020.231 billion yuan in 2030, and it is expected to grow to 624.<> billion yuan in <>, maintaining a high growth rate.

(数据来源:西南证券研究发展中心)
Endoscopy major players
Major foreign production enterprises:
1) Olympus Corporation
Founded in 1919, Olympus Corporation is one of Japan's representative enterprises in precision instruments and optical technology, and its main business includes three major fields: medical, industrial equipment and life sciences. Olympus Medical's products include digestive endoscopy, surgical endoscopy, endoscopic surgical instruments, endoscopic ultrasound, total solutions for minimally invasive surgery, and business support systems aimed at improving the business efficiency of medical institutions.
In the field of endoscopy, Olympus' main endoscopic products include digestive endoscopy, biliary endoscopy, laparoscopy, electronic gastroscopy, cystoscopy, ureteroscopy, percutaneous nephroscopy, hysteroscopy, colposcopy, bronchoscopy and ENT scope. It is mainly based on flexible endoscopic equipment, and occupies most of the global soft mirror market share.

2) Fujifilm
Founded in 1934, Fujifilm Co., Ltd.'s main business includes imaging solutions, information solutions and document solutions. The medical business is one of Fujifilm's main businesses. Fujifilm endoscopy series products mainly cover gastrointestinal endoscopy and systems, respiratory bronchoscopy systems, ultrasound bronchoscopy systems, ENT electronic endoscopy systems, etc. In the field of flexible mirrors, it is in the second echelon, and in recent years, it has attached importance to the Chinese market, and the soft mirror products have been updated quickly and the clinical feedback is better.

3) PENTAX Medical
Pentax Medical was founded in 1919. In 2007, Pentax Medical was acquired by HOYA Corporation. Pentax Medical provides advanced clinically relevant endoscopic imaging solutions through leading optical technology. Pentax Medical is headquartered in Japan, and its R&D, sales and services are all over the world. In the field of soft mirrors in the second echelon, since the acquisition by HOYA, the market has shrunk, production has declined, and Pentax headquarters has cancelled the general representative qualification of many countries in 18 years, and implemented multi-level agents, which has a certain negative impact.

Major foreign production enterprises:
1) Open Medical (Stock Code: 300633. SZ)
Founded in 2002, KaiKai Medical is mainly listed on the Growth Enterprise Market of Shenzhen Stock Exchange in 2017 with its main products of ultrasound diagnostic systems, electronic endoscopic systems and in vitro diagnostic series. In 2019, the company achieved operating income of 12.54 billion yuan and net profit attributable to shareholders of the parent company of 1 million yuan. The first listed company to have a medical endoscopy equipment business, with strong R&D capabilities and bright ultrasound endoscope products. On November 02, 2022, the company's 11K fluorescent endoscopes (medical endoscope camera system, medical endoscope cold light source, thoracic and abdominal endoscope) have been successively approved by the Guangdong Provincial Drug Administration and obtained the medical device registration certificate of the People's Republic of China.

2) Aohua endoscopy (688212. SH)
The earliest manufacturer of electronic endoscopes in China, covering the three major fields of soft scope, hard scope and endoscopic diagnosis and treatment equipment, the departments cover urology, respiratory, gastroenterology, otolaryngology, gynecology, general surgery, etc. It is in the first echelon of domestic soft mirror enterprises, is a scarce soft mirror leader in China, and carries out the layout of the whole industrial chain of the endoscope industry through epitaxial mergers and acquisitions. On November 2022, 11, Aohua Endoscopy officially released the AQ-1 300K Ultra HD Endoscopy System on the company's WeChat public account. Relevant information shows that at present, only Olympus Japan has released a 4K ultra-high-definition endoscopy system, but it has not officially entered the Chinese market. In addition, Aohua Endoscopy also released a 4K ultra-high-definition digestive endoscope that can be used with the aforementioned system. The company said that the market of duodenoscopy, bronchoscopy, otolaryngology, urology and cholangioscopy that can be used is also just around the corner.

3) Mindray Medical (stock code: 300760. SZ)
Founded in 1991, Mindray is a leading R&D and manufacturer of high-tech medical devices in China, providing medical device products to the global market. The company's main business covers three major fields: life information and support, in vitro diagnosis and medical imaging. In 2019, the company achieved revenue of 165.56 billion yuan and net profit attributable to shareholders of the parent company of 46.81 billion yuan. The company's 4K fluorescence endoscopy system accelerates import substitution, and the monitoring line channel synergy + brand radiation effect helps the hard mirror accelerate the admission to the hospital. At present, the company has launched high-definition and 4K fluorescent laparoscopic systems and minimally invasive surgical instrument products, from low to high layout HD3 (the first self-developed full HD 3CMOS laparoscopic system, launched in 2015), HyPixel U1 (4K hard mirror, 2020) and HyPixel R1 (4K endoscopic fluorescence camera system, 2021) three hard mirror systems, gradually closing the loop around the original product line.

4) Haitai Shinko
Founded in 2003, based on optical technology, with independent research and development, precision production of a wide range of medical rigid endoscopic instruments and optical products, medical hard mirror products mainly include high-definition white light and fluorescent laparoscope, light source modules and camera adapters/lenses, optical products mainly cover medical optical products, industrial and laser optical products and biometric products. The business model has accelerated its evolution, from endoscopic component ODM foundry, as the exclusive supplier of Stryker HD fluorescent endoscope/optical module/adapter lens, to independently launching its own brand to create a hard mirror machine with integrated industrial chain.
5) Nanwei Medical (Stock Code: 688029.SH)
Founded in 2000, Nanwei Medical Technology Co., Ltd. is mainly engaged in the research and development, manufacturing and sales of minimally invasive medical devices, and was listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange on July 2019, 7. In 22, the company achieved an operating income of 2019.13 billion yuan and a net profit attributable to shareholders of the parent company of 07 million yuan. It is mainly the faucet of endoscopic diagnosis and treatment consumables.

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