The procurement peak period for vaccine production equipment has passed, where should pharmaceutical machinery companies go?

Since 2020, many pharmaceutical machinery companies have benefited from the increase in vaccine-related business and achieved a significant increase in orders for vaccine production equipment, which has contributed to the growth of performance to a certain extent
.
It is worth mentioning that the performance growth brought by this type of equipment is sustainable and limited
.
The industry generally believes that the peak period of procurement of vaccine production equipment has passed.
Then, where should the pharmaceutical machinery companies go in the future? The procurement peak period for vaccine production equipment has passed, where should pharmaceutical machinery companies go? (Picture source: Pharmaceutical Network) Vaccine production equipment has contributed to the growth of pharmaceutical machinery companies Since 2020, the impact of the epidemic has brought about an increase in vaccine-related businesses, which has made many listed pharmaceutical machinery companies profitable and achieved stable growth
.
For example, Chutian Technology has shown strong delivery capabilities in ensuring the mass production of vaccines
.
It is reported that the company's biopharmaceutical equipment products accounted for nearly 40% of its revenue and new orders this year
.
These vaccine production equipment have made important contributions to the substantial growth of Chutian Technology's performance
.
In the first three quarters of 2021, the company achieved revenue of 1.
291 billion yuan, a year-on-year increase of 57.
90%; realized a net profit of 165 million yuan, a year-on-year increase of 413.
91%
.
Promoted by related vaccine equipment, Tofflon also achieved outstanding performance in the first three quarters of 2021: During the reporting period, the company achieved operating income of approximately 2.
882 billion yuan, a year-on-year increase of 54.
61%; and achieved a net profit attributable to shareholders of listed companies.
558 million yuan, a year-on-year increase of 93.
69%
.
According to the company's 2021 semi-annual report, the company's vaccine-related businesses are distributed in four sectors: injection stand-alone machines and systems, medical devices, bioengineering, and inspection packaging.
In particular, medical equipment and bioengineering businesses have developed rapidly with significant increases
.
In addition, although Tailin Biotech and other pharmaceutical companies have not directly participated in the development and production of related vaccines, the equipment and supporting consumables they provide are also used by some vaccine companies in the development and production process
.
It also brings a certain incremental contribution to the company's performance growth
.
The procurement peak period has passed, what should pharmaceutical machinery companies do? It is worth mentioning that although vaccine production equipment has made a certain contribution to the performance growth of pharmaceutical companies in the short term, the performance growth brought by such equipment is sustainable
.
The industry generally believes that the peak period for the procurement of vaccine production equipment has passed.
It can also be seen from the financial report of Teflon that its vaccine-related orders accounted for a gradual decline in the proportion of new orders.
In the third quarter, due to the decrease in vaccine orders, the net Profit fell 35% from the previous month
.
Zheshang Securities also mentioned in its research report recently that the short-term substantial increase in investment demand for new crown vaccine construction orders has a certain cyclical nature, and the impact of domestic and foreign new crown vaccine construction orders may decrease significantly from 2023
.
So, as orders for vaccine production equipment decrease, what should pharmaceutical machinery companies do? Combining various points of view, the author summarizes the following three aspects: ① Development towards the direction of high-end pharmaceutical equipment Since 2020, including the "Guiding Opinions on Expanding Strategic Emerging Industry Investment, Cultivating and Growing New Growth Pole" and other policies have specified The pharmaceutical equipment industry needs to develop in a high-end direction
.
At present, the domestic high-end pharmaceutical equipment on the market is obviously insufficient, and there is a lack of domestic companies that can compete with imported high-end equipment companies
.
Therefore, domestic pharmaceutical equipment needs to transform from low-end to mid-to-high-end, tap the development space in the high-end field, and achieve new breakthroughs
.
② Optimistic about import substitution opportunities.
For a long time, equipment in the pharmaceutical equipment market, especially high-end equipment, is mainly imported.
Domestic equipment is relatively limited in use due to low technical content and insufficient experience
.
In recent years, as domestic equipment companies have increased their R&D investment and their strength has been continuously improved, domestic products have gradually opened up the market through the advantages of high cost performance and convenient maintenance
.
Especially since 2020, under the background of delayed delivery of imported equipment, domestically-made equipment with advantages has quickly gained market attention and affirmation
.
In the future, the trend of import substitution is expected to intensify, bringing more opportunities to domestic pharmaceutical machinery companies
.
③ Do a good job of "going to sea" articles Judging from the business situation of pharmaceutical machinery companies represented by Chutian Technology and Dongfulong in recent years, overseas business is becoming a part of driving the growth of these companies, and there have been many since 2020.
The company's export overseas business has grown rapidly
.
The industry believes that under the background of fierce competition in the domestic pharmaceutical machinery market, local pharmaceutical machinery companies can also achieve new growth in performance by doing a good job of "going abroad"
.