Prospects for the pharmaceutical equipment industry in 2022: the boom is particularly strong, and the growth rate may slow down

The blink of an eye has reached the end of 2021.
Looking back at 2021, affected by the transformation and upgrading of the downstream pharmaceutical industry and the accelerated pace of substitution of domestic pharmaceutical equipment for imports, the entire pharmaceutical equipment industry still has a high degree of prosperity
.
In the first three quarters of this year, most pharmaceutical machinery companies achieved both revenue and net profit growth, and they are expected to continue to grow in the fourth quarter
.
So, looking forward to 2022, can the boom of the pharmaceutical equipment industry continue? What about the growth of the industry? Pharmaceutical equipment (picture source: Pharmaceutical Network) Judging from the forecasts of many securities companies, the prosperity of the pharmaceutical equipment industry in 2022 is undoubtedly promising to continue
.
Among them, Guosen Securities Research pointed out that the domestic pharmaceutical equipment market exceeded 90 billion yuan in 2019, with a CAGR of approximately 14.
3% from 2015 to 2019
.
The agency predicts that the industry is expected to continue to maintain a +14% industry growth rate in the future, and the market size will exceed 170 billion yuan in 2024
.
Another industry insider predicts that the demand for pharmaceutical equipment will usher in a substantial increase in 2021-2023
.
Since the release of GMP transformation in 2010, the amount of equipment investment has continued to increase, which has led to a rapid increase in contract liabilities for the pharmaceutical equipment industry
.
It is speculated that the prosperity of the pharmaceutical equipment industry can be maintained for at least 3 to 5 years
.
So, what are the factors that can sustain the prosperity of the pharmaceutical equipment industry? The author believes that it can be analyzed step by step in combination with favorable policies, downstream market demand, and technological upgrading
.
First, favorable policies have forced the pharmaceutical equipment industry to transform and upgrade, from low-end to mid-to-high-end development
.
Judging from the policies issued over the years, the direction of encouraging the development and production of high-end pharmaceutical equipment has been very obvious
.
In the future, the demand for high-end domestic pharmaceutical equipment will be stronger, and the market share will gradually increase.
The industry expects that the proportion of the high-end market from 2019 to 2024 is expected to grow at a compound growth rate of 17.
1%
.
Second, strong downstream market demand, especially the rapid development of the biopharmaceutical industry in recent years, will further drive the growth of demand for related pharmaceutical equipment
.
Since 2021, the field of biopharmaceuticals has brought performance growth to many pharmaceutical machinery companies, and has become a new force and layout direction for many companies
.
Recently, Chutian Technology also mentioned in the survey that the growth of biopharmaceuticals will drive the company's business growth, and the proportion of the bioengineering sector will increase in the future
.
It is worth mentioning that high-end biopharmaceutical equipment such as reactors and separation and purification systems are still dominated by foreign companies.
With the continuous efforts of domestic pharmaceutical companies, the pace of import substitution will also accelerate in the future
.
Third, pharmaceutical equipment is gradually transforming from semi-automation to automation, intelligence, and informatization, and from a single equipment supplier to a professional pharmaceutical equipment solution provider
.
Under the ever-changing market environment and market demand, pharmaceutical equipment technology also needs to keep pace with the times and continue to innovate
.
For example, the API industry is facing the challenge of green, low-carbon, high-quality innovation and development.
Under this background, API equipment companies have both opportunities and challenges.
They need to continuously innovate technologies and accelerate the development of new products to seize market opportunities
.
In this regard, the industry expects that the normal equipment renewal and technological transformation of pharmaceutical equipment manufacturers will also have a considerable market for the demand for pharmaceutical machines, and the prospects are bright
.
However, judging from the agency's forecast of industry growth, the overall industry performance growth rate may slow down
.
Take Chutian Technology, Morimatsu International, and Tofflon International as an example.
According to Wind’s expectations, the operating income of Toffeon, Chutian Technology, and Morimatsu International in 2021E will increase by 45%, 34%, and 26%, respectively, by 2022E.
The year-on-year growth rates were 22%, 21%, and 27%, respectively; the year-on-year growth rates of the three companies' 2021E return to parent profits were 61%, 143%, and 6%, respectively, and the 2022E year-on-year growth rates were 22%, 20%, and 48%
.