中金公司2011年10月医疗器械报告（英文）：China Medical Device Industry defensive Growth on Improving Fundamentals

Contents（目录）

Investment  summary .................................................................................................................................... 6
      Relative va luation............................................................................................................. .......................11  
       Discounted cash flow (DCF): Shandong Weigao and Mindray valuations most attr active ..................... 13
Medical device industry more de fensive......................................................................................... .......... 14
Attractive growth outlook for the  Chinese medical d evice industry ...................................................... 15
Emerging markets an important driver of growth for Chinese medical device comp anies.................. 17
Pricing policy for medical device  industry still evolving in Ch ina.......................................................... 19
      How does the Chinese government control prices on m edical devices?................................................ 19
      Price caps and restrictions on mark-up and prof it margins proposed for  therapeutic im plants .............. 19
      Tendering process for medical devices still evol ving ........................................................................... ... 20
Chinese medical device sector attracts increasing capit al invest ment ................................................. 21
Shandong Weigao (01066.HK):  Firing on all  cylinders ............................................................................ 22
      Business summary................................................................................................................................. 23  
      Medical consumables: Expect r obust growth to  conti nue....................................................................... 24
      Hemodialysis: poised to be the leading Chinese player  with Rmb2bn po tential..................................... 28  
      Drug-eluting stents: Ownership of Biosensors provides attractive value propos ition ............................. 33  
      Orthopedics franchise: Call option with Medtronic values the franchise  at Rmb2.4~ 4.4bn .................... 38  
      Financial statement s ........................................................................................................... ................... 40  
Mindray (MR.US): Emerging markets and pipeline to drive grow th reacceler ation .............................. 42
      Investment highlights .......................................................................................................... ................... 42  
      Valuation ................................................................................................................................................ 42  
      Risks .......................................................................................................................... ............................ 42
      Business summary................................................................................................................................. 43  
      Assessing Mindray’s growth drivers ............................................................................................. .......... 44
      Sensitivity analysis of growth  drivers......................................................................................... ............. 45
      Business segment summary ....................................................................................................... ........... 48  
      Shareholder  structure.......................................................................................................... ................... 57  
      Financial statement s ........................................................................................................... ................... 58  
Kanghui Medical (KH.US): China’s best positioned ort hopedic player .................................................. 60
      Business summary................................................................................................................................. 61  
      Business segment s ................................................................................................................................ 62  
      Sales & distribution: extensive distri bution networks in domestic mark ets ............................................. 66
      Manufacturing facilities: production capacity expansion to meet  increasing  demand............................. 67
      Experienced and professional management with  strong execution ....................................................... 67
      Shareholder  structure.......................................................................................................... ................... 68  
      Financial statement s ........................................................................................................... ................... 69  
Trauson Holdings (325.HK): China’s ‘Steady Eddie’ of orthopedic devices.......................................... 71
     Business summary................................................................................................................................. 72  
     Business segment s ................................................................................................................................ 73  
     Business deals to support further growth ....................................................................................... ........ 74  
     Sales & distributio n ........................................................................................................... ..................... 76
     Manufacturing facility no longer a bottleneck .................................................................................. ....... 77  
     Shareholder  structure.......................................................................................................... ................... 78  
     Financial statement s ........................................................................................................... ................... 79  
Appendix I: Major growth factors of the Chinese medical  device industry ........................................... 81  
Appendix II: Medical device markets in leading emer ging countries ..................................................... 85
Appendix III: Chinese orthopedic device industry poised for  rapid gr owth .......................................... 86  
   Plenty of room for gr owth ...................................................................................................... ................. 86
   Key trends in Chinese orthopedi cs market....................................................................................... ...... 88
   Three market segments: trauma, spin e and joints ................................................................................ .90  
   Comparison of the three leading domestic orthopedic  player s............................................................... 92