CITIC Construction Investment: During the National Day holiday, Hong Kong stock medical device companies performed well overall, and we remain optimistic about the recovery trend in Q3

CITIC Construction Investment's research report pointed out that during the National Day holiday, Hong Kong stock market medical device companies performed well overall, with several leading medical device companies seeing gains. Among them, MicroPort Medical and some subsidiaries performed well, which is expected to be related to the announcement of Shanghai state-owned assets being assigned directors to participate in board work, governance improvements, and performance recovery expectations; Baixin An and LIFETECH SCI also performed well, likely due to potential event catalysts such as the expectation that the U.S. CMS will include RDN in Medicare and the latest data on iron-based biodegradable stents to be announced at TCT2025. It is expected that in Q3, many companies in the medical device sector will benefit from the release of new products and new business, achieving quarter-on-quarter improvements, or achieving high growth based on last year's low base; among them, some companies in high-value consumables and medical equipment and upstream sectors have achieved high growth, while some enterprises in the IVD industry are under pressure in the short term due to policies such as DRG and centralized procurement, and the situation of various companies in the low-value consumables industry is somewhat differentiated. In the short term, it is recommended to seize the rotation and rising opportunities of individual stocks with performance improvements, and in the long term, to focus on opportunities in innovation, going overseas, and mergers and acquisitions