In 2022, the performance of the pharmaceutical machinery industry is still expected to maintain high growth

In 2021, benefiting from the rapid expansion of domestic vaccine and pharmaceutical manufacturers, as well as the continuous breakthroughs in emerging drugs such as double antibodies and ADC drugs, the biomedical industry will achieve high growth
.
In this context, the demand for pharmaceutical equipment, the "mother machine" of pharmaceutical production, is also very strong, and the entire industry has ushered in new development opportunities.
Pharmaceutical giants such as Chutian Technology and Dongfulong will grow rapidly in 2021.
A lot of market attention
.
Looking forward to 2022, the overall performance of China's pharmaceutical machinery industry is still expected to maintain high growth
.
Pharmaceutical equipment (picture source: Pharmaceutical Net) At present, pharmaceutical equipment companies such as Chutian Technology, Tofflon Technology, and Canaan Technology have seen relatively good growth in their orders
.
The third quarterly report for 2021 shows that as of the end of September 2021, Chutian Technology’s contract liabilities are about 2.
534 billion yuan, and the orders in hand are about 6.
2 billion; Teflon’s contract liabilities have grown rapidly, reaching about 3.
3 billion yuan, an increase of 65% from the beginning of the year; Canaan Technology Contract liabilities are approximately 432 million yuan, and orders have increased rapidly year-on-year
.
2021 is coming to an end.
Based on this, it is expected that the performance of these three companies in 2022 will continue to benefit
.
Analysis believes that behind the good performance of the entire pharmaceutical machinery industry and the expected continued high growth, there are several major driving factors, including the increase in demand for high-end biopharmaceutical equipment, the acceleration of import substitution, and the rapid growth of overseas business
.
Growth in demand for high-end biopharmaceutical equipment.
Resonated by multiple factors such as favorable policies, the influx of talents, capital overweight, and the increase in corporate R&D investment, China's biopharmaceutical industry is developing rapidly
.
Data show that the domestic biopharmaceutical market will be about 387 billion yuan in 2020, and this number is expected to grow to 1.
3 trillion yuan by 2030
.
In this context, the biopharmaceutical equipment industry will have good opportunities
.
The third quarterly report of Chutian Technology shows that in the first three quarters, the company's biopharmaceutical equipment segment revenue and orders accounted for about 40% of the share, which shows that the demand for biopharmaceutical equipment is strong.

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The industry predicts that China's pharmaceutical equipment market will increase from the current 100 billion yuan to about 200 billion yuan in 2025, and this 200 billion yuan scale growth will include the disposable technology products, fillers, and excipients associated with biopharmaceuticals.
Contribute income
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Facing the vast blue ocean of the biopharmaceutical market, pharmaceutical machinery companies such as Chutian Technology and Tofflon are actively deploying
.
For example, Chutian Technology established a subsidiary Microsphere Bio to overcome important nodes in key biopharmaceutical technologies; Tofflon invested in the construction of a pharmaceutical system equipment production base construction project of nearly 500 million yuan to serve the development of the biomedical industry
.
Import substitution accelerates Import substitution has a good opportunity since 2020.
At that time, due to the delay in the delivery of imported equipment, many pharmaceutical companies and vaccine manufacturers began to focus on domestically produced equipment with good cost performance.
This is especially true for domestic pharmaceutical companies.
It is the giants that have brought a lot of order growth
.
The industry pointed out that although the current peak period for vaccine equipment procurement has passed, domestically-made equipment has gradually gained recognition from users due to the continuous improvement of product performance, quality and service, and is expected to continue to be favored by pharmaceutical manufacturers
.
At present, the "big cake" that will be brought about by import substitution is also receiving the attention and layout of domestic pharmaceutical machinery giants
.
For example, Chutian Technology stated in an agency survey not long ago that the company had been deploying import substitution in the high-end market of vaccine products three years ago, and the product performance and quality have been able to meet the needs of high-end customers
.
The company said that it has entered the supply chain of the high-end vaccine industry, and the gap with the leading European companies is gradually narrowing.
It is expected to enter the international high-end pharmaceutical equipment market and compete with imported equipment on the same platform
.
Rapid growth of overseas business In recent years, under the background of fierce competition in the domestic pharmaceutical machinery market, overseas business has become a new layout point for some pharmaceutical giant companies
.
Since 2020, many local pharmaceutical machine companies have also obtained new overseas orders to push their products to overseas markets to meet the needs of overseas users
.
Teflon’s overseas revenue in the first half of the year already accounted for nearly a quarter of the company’s total revenue, reaching 448 million yuan
.
In the past five years, Tofflon’s overseas revenue accounted for 20-25%
.
From the perspective of the main regions of overseas revenue, it was mainly from Asia before.
Starting in 2020, the company quickly opened markets in developed countries such as Europe.
The mid-term report for 2021 showed that the revenue growth rate in Europe increased by more than 3.
1 times year-on-year.
In addition, Europe and Africa , North and South America markets also performed well
.
The analysis pointed out that with the establishment of subsidiaries and representative offices in the United States, Italy and other countries, the company is expected to further expand its presence in the high-end markets in Europe and the United States and obtain continued growth in overseas business revenue
.
Chutian Technology plans to integrate resources, establish branch companies in important international markets, and use ROMACO's international market channel resources to quickly expand its market reach to all parts of the world
.
According to the company's plan, the export business maintains an annual increase of 10%-20%.
It is planned that by 2025, the export business income will account for 40%-50% of the total income
.
In general, the continued growth of overseas business of domestic pharmaceutical companies is also worth looking forward to
.
Guosheng Securities believes that domestic pharmaceutical equipment companies have accelerated their internationalization strategy and established overseas subsidiaries through "acquisitions + self-construction" and other methods to increase their international layout and open up the growth ceiling
.