In recent years, following widespread centralized procurement of orthopedic implant products, domestic companies have accelerated innovation-driven expansion. In the short term, centralized procurement in the three major orthopedic sub-sectors is gradually concluding, with companies' operational performance reaching inflection points. Medium to long term, domestic manufacturers are expected to gain market share post-procurement, while industry consolidation continues. Aging populations will drive higher penetration of orthopedic surgeries, and companies expanding into surgical robotics could boost implant volumes, creating a closed-loop "equipment + consumables" business model. Additionally, overseas expansion efforts may further elevate growth potential.

Key highlights from China Securities' report include:

**Focus on Digital and Intelligent Orthopedic Development** The recent COA conference, themed "Digital and Intelligent Orthopedics for a Shared Future," showcased cutting-edge digital and smart technologies. Over 100 leading medical device manufacturers and innovators exhibited products spanning orthopedic implants, surgical robots, smart diagnostic equipment, biomaterials, and post-operative rehabilitation.

Notably: - **AK MEDICAL** (01789) presented its digital orthopedic solutions and 3D-printed innovations, including the K3+ surgical robot. - **TINAVI** displayed its TiRobot and TiRobot 2.0 systems, offering comprehensive spinal, trauma, and joint solutions. - **Yuanhua Intelligence** debuted its pioneering "five-in-one" orthopedic robot and held a product launch. - **WEGO Orthopedics** highlighted its full-chain digital solutions, featuring weight-bearing CT and pressure-sensing surgical robots.

**Domestic Manufacturers Expand Product Lines and Industrial Chain** Post-procurement, domestic firms are diversifying offerings beyond digital orthopedics, extending into upstream materials like ceramics and polymers. Examples include: - **Sanyou Medical**: Jazz flexible bands, Zeus spinal fixation systems, and Baguera-C cervical discs. - **Chunli Medical**: Implants, PRP kits, and handheld robotics attracting global interest. - **OsteoRegen**: Innovations in mineralized collagen biomaterials. - **Lixin Science**: Regenerative artificial bone and sports medicine products. - **Anson Tech**: Self-developed zirconia ceramic femoral heads.

**Inflection Points and Long-Term Growth Drivers** Short-term: The end of procurement cycles signals earnings recovery. Medium-term: Price cuts may reduce distributor incentives for imported brands, benefiting domestic players. Larger firms will leverage scale advantages in production, logistics, and R&D, accelerating industry consolidation. Long-term: Aging demographics and technological upgrades will sustain growth, while overseas expansion (e.g., **Chunli Medical**, **WEGO Orthopedics**, **Sanyou Medical**, **Dabo Medical**) unlocks new ceilings.

**Top Picks**: - **AK MEDICAL** (01789): Joint market leader, 3D printing/robotics. - **Chunli Medical** (688236.SH): High-growth overseas, sports medicine/PRP. - **WEGO Orthopedics** (688161.SH): Leading spinal share, balanced portfolio. - **Sanyou Medical** (688085.SH): Strong R&D, ultrasonic bone tools. - **Dabo Medical** (002901.SZ): Trauma specialist, global expansion.

**Risks**: 1. Policy shifts affecting margins or delaying tenders. 2. Intensified competition from smaller rivals leveraging procurement. 3. R&D delays in robotics/bone substitutes. 4. Forex/geopolitical risks for exporters.