--- title: "CITIC Construction Investment: The optimization of centralized procurement policies no longer solely emphasizes low prices; focus on valuation recovery and performance inflection point opportunities" type: "News" locale: "en" url: "https://longbridge.com/en/news/250064657.md" description: "CITIC Construction Investment released a research report stating that the centralized procurement policy optimization no longer solely focuses on low prices. It is expected that multiple companies will experience high growth in Q3, and the medical device industry is likely to see a performance inflection point. With the optimization of centralized procurement rules, the prices of some high-value consumables are expected to ease, and the industry's valuation and performance certainty will be restored. The long-term investment opportunities in the medical device industry are promising, especially for companies with strong international capabilities" datetime: "2025-07-25T03:22:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/250064657.md) - [en](https://longbridge.com/en/news/250064657.md) - [zh-HK](https://longbridge.com/zh-HK/news/250064657.md) --- # CITIC Construction Investment: The optimization of centralized procurement policies no longer solely emphasizes low prices; focus on valuation recovery and performance inflection point opportunities According to the Zhitong Finance APP, CITIC Construction Investment has released a research report stating that under the recent background of "anti-involution" and "optimization of centralized procurement no longer solely based on low prices," if the decline in the tracks where centralized procurement has not been implemented slows down, and the tracks where centralized procurement has been implemented see moderate renewals or linkages, the valuation and performance certainty of the sector are expected to welcome a recovery. The medical device industry is viewed positively for turning point opportunities, with more opportunities in the sector expected to gradually increase in the second half of the year. The firm anticipates that multiple companies will experience high growth in Q3, with product innovation likely to generate continuous catalysts, and internationalization and mergers and acquisitions opening up long-term space. ## CITIC Construction Investment's main viewpoints are as follows: **Event** On July 24, at a press conference held by the State Council Information Office, Deputy Director of the National Medical Insurance Administration, Shi Zihai, responded to reporters' questions, stating that the 11th batch of centralized procurement work has recently been initiated. The National Medical Insurance Administration is researching the optimization of specific rules, optimizing the calculation "anchor point" for price differences in the selection rules, no longer simply using the lowest bid as a reference. Additionally, for the selected enterprises with the lowest bids, they must publicly explain the reasonableness of their bids and commit to not quoting below cost. **Optimization of centralized procurement for high-value consumables, with further improvement expected in procurement rules, and prices for certain categories of centralized procurement likely to ease, the following high-value consumables directions are expected to welcome valuation recovery:** 1. Centralized procurement not yet cleared: Aortic stents (HeartCare Medical), digestive interventional consumables (Nanwei Medical, Anjiesi), neuro and peripheral intervention (Guichuang Tongqiao, Xianruida, Sainuo Medical), minimally invasive surgical consumables (Kangji Medical) 2. Centralized procurement renewals not yet conducted: Electrophysiology (Huitai Medical, Microelectrophysiology) **Several companies in the medical device industry are welcoming performance turning points, with improvement trends in various sub-tracks** Medical Equipment: The domestic bidding turning point for Q4 2024 has already manifested, with performance turning points for companies like United Imaging Medical, Mindray Medical, Kaili Medical, and Aohua Endoscopy beginning to show in Q3 2025; long-term investment opportunities in the sector mainly come from companies with excellent internationalization capabilities. As previously high-growth winning orders gradually install and confirm revenue, United Imaging Medical is expected to achieve over 50% revenue growth in Q3 and Q4. Upstream of Medical Equipment: Meihao Medical, Yirui Technology, etc., are expected to welcome industry turning points in Q3, achieving high growth on a month-on-month or year-on-year basis. High-value consumables: In the short term, domestic import substitution, penetration rate improvement, and centralized procurement recovery are in focus, while in the long term, category expansion and going abroad are key. The optimization policy for domestic centralized procurement is favorable for valuation recovery, and the impact turning points of centralized procurement in various tracks are gradually manifesting: centralized procurement clearance in orthopedics and other tracks, with companies like Chunli Medical and Sanyou Medical expected to see high growth in Q2 and Q3; some companies in electrophysiology, neuro, and peripheral intervention tracks are expected to benefit from centralized procurement; aortic stents and other tracks where centralized procurement has not been cleared are likely to benefit from the optimization policy. Additionally, the high-value consumables sector is also optimistic about the internationalization layout of companies like Chunli Medical and Aikang Medical, as well as the potential business development catalysts in Lepu Medical's medical aesthetics and innovative drug business. IVD: Still under pressure due to multiple policy impacts, the chemiluminescence industry needs to wait for a turning point where volume and price stabilize, with expectations for clearer industry trends by the end of the year or next year; domestically, there is also hope to benefit from the optimization policy for centralized procurement, with significant room for domestic substitution, and long-term international investment opportunities are viewed positively. Low-value consumables: Investment logic varies greatly among companies, with many enterprises building factories in Southeast Asia and other locations to cope with tariff risks, laying out supply chains; after production in Southeast Asia, companies like Yingke Medical are expected to welcome performance turning points brought by an explosion of orders in the U.S. market **It is expected that many companies will experience high growth in Q3, and opportunities in the sector will gradually increase in the second half of the year. Product innovation is expected to generate continuous catalysts, while internationalization and mergers and acquisitions will open up long-term space. We are optimistic about investment opportunities in the following directions:** 1. Optimization of high-value consumables procurement: undervalued companies such as Xinmai Medical, MicroPort Medical, Nanwei Medical, Guichuang Tongqiao, and Kangji Medical, as well as Huatai Medical and Microelectrophysiology in the electrophysiology track, are all expected to benefit. In addition, the high-value consumables sector is also optimistic about the international layout of companies like Chunli Medical and Aikang Medical, which have cleared procurement, as well as Lepu Medical's layout in consumer fields such as medical aesthetics and the potential BD catalysts of the company's innovative drug business. 1. Turning point in medical device performance: United Imaging Medical is expected to see high growth in Q3 and Q4, while Mindray Medical is reaching a significant turning point in Q3. 2. 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