According to a research report from Guosen Securities Co.,Ltd., innovative medical devices, high-value consumables, CGM, PFA, surgical robots, structural heart devices, early cancer screening/MRD, and AI medical platforms remain the primary growth drivers. For the Chinese market, most multinational corporations (MNCs) continue to face cyclical pressures. While MNCs maintain a cautious stance on short-term operations in China, they generally acknowledge the market's long-term potential driven by healthcare demand, high-end innovative products, and procedural upgrades. The medical device industry is currently in a phase characterized by the easing of policy pressures, volume expansion of innovative products, and the parallel advancement of domestic product upgrades and international expansion. Concurrently, AI healthcare, precision medicine, and digital health are in a rapid commercialization stage, poised to become new growth curves for the medical device and diagnostics sectors.

Guosen Securities Co.,Ltd.'s key views are as follows: For 2025 and Q1 2026, overseas medical device MNCs overall sustained a growth trajectory, but divergence between segments became more pronounced. Traditional medical equipment, medical consumables, and IVD companies mostly maintained positive growth. Among them, innovation-driven companies like Intuitive Surgical, Boston Scientific, and DexCom performed notably, with 2025 revenue growth of 20.5%, 19.9%, and 15.6% respectively. Companies related to AI healthcare, precision medicine, and digital health grew even faster, with Tempus AI, Hims & Hers, Natera, and Guardant Health achieving revenue growth rates of 83.4%, 59.0%, 35.9%, and 32.9% respectively. Overall, innovative devices, high-value consumables, CGM, PFA, surgical robots, structural heart devices, early cancer screening/MRD, and AI platforms remain the main growth engines. Conversely, mature imaging equipment, certain diagnostic businesses, and some consumables companies with stronger consumer attributes performed relatively weaker. Profitability was impacted by factors such as tariffs, pricing pressures, channel adjustments, and R&D/commercialization investments.

Regarding the Chinese market, most MNCs still face cyclical pressures, primarily stemming from the expansion of centralized procurement (GPO), medical insurance cost control, cautious hospital budgets, weak consumption, domestic substitution, local low-price competition, and channel inventory adjustments. Revenue from China remains under pressure for some companies. The equipment segment is notably affected by hospital procurement cycles, tender delays, and price competition. The diagnostics business is impacted by GPO, reimbursement rate reductions, and the standardization of testing prices. In the high-value consumables sector, areas like orthopedics, surgery, and ophthalmology require continuous monitoring of GPO impacts and competition from domestic products. However, from a marginal change perspective, pressures have eased for some companies. For example, the decline in Abbott Laboratories' Core Lab revenue in China has narrowed to flat, Danaher is gradually moving past the year-on-year pressure from GPO, and STAAR Surgical's China channel inventory has returned to the target range.

In summary, MNCs remain cautious about short-term operations in China but widely recognize the market's medium- to long-term potential driven by healthcare demand, high-end innovative products, and procedural upgrades. The medical device industry is currently in a stage of "policy pressure easing, innovative product volume expansion, and parallel domestic upgrade & international expansion." Medical equipment is significantly influenced by macro cycles and hospital procurement rhythms, but domestic leaders in this field exhibit relatively strong global competitiveness. Product premiumization and increasing overseas market share are the main themes for medium-to-long-term growth. In the high-value consumables sector, domestic GPO has already covered many homogeneous products. Future growth relies more on innovative products, procedural upgrades, and international expansion. Although domestic companies still lag behind MNCs, driven by the engineer dividend, accumulated clinical cases, and policies encouraging innovative drugs and devices, they are expected to accelerate their catch-up. In the IVD sector, precision diagnostics remain the foundation for effective treatment. GPO is driving increased market share for domestic leaders. Platform-based layouts, breakthroughs in upstream core technologies, and emerging areas like molecular diagnostics, mass spectrometry, and immunoassay automation lines will become key drivers for unlocking long-term growth potential. Simultaneously, AI healthcare, precision medicine, and digital health are in a rapid commercialization stage, poised to become new growth curves for the medical device and diagnostics industries.

Stocks to watch include: United Imaging Healthcare, Huatai Medical, Yuyue Medical, AK Medical, Micro-Tech (Nanjing), and Shenzhen New Industries Biomedical Engineering.

Risk warnings: Product R&D failure, intensifying market competition, GPO price cuts exceeding expectations, tender progress falling short of expectations, geopolitical risks, and foreign exchange volatility risks.