HK Stock Market Move | Medical equipment stocks rise in early trading, National Drug Centralized Procurement explicitly against "inward spiraling", institutions optimistic about industry turning point opportunities.

Medical device stocks rose in the morning session, as of press time, VINCENT MED(01612) rose by 24.24% to 0.82 Hong Kong dollars; AK MEDICAL(01789) rose by 8.09% to 6.68 Hong Kong dollars; Beijing Chunlizhengda Medical Instruments(01858) rose by 5.05% to 17.48 Hong Kong dollars; WEIGAO GROUP(01066) rose by 5.54% to 7.24 Hong Kong dollars; MICROPORT(00853) rose by 4.4% to 10.92 Hong Kong dollars. On the news front, Shi Zihai, deputy director of the National Medical Insurance Bureau, stated that the 11th batch of centralized procurement will no longer be based solely on the lowest price, and the lowest bidding company must publicly explain the reasonableness of their bid and commit to not bidding below cost. EB SECURITIES pointed out that this adjustment will effectively curb vicious price competition and shift the industry from a "price war" to a "value war." It is recommended to focus on generic drugs and leading medical device companies that continue to be selected in centralized procurement and have dual advantages of quality and cost. Categories that have been excessively suppressed by centralized procurement in the past are expected to undergo a value reassessment. China Securities Co.,Ltd. believes that under the recent background of "anti-internal competition" and "optimization of centralized procurement no longer based solely on low prices," if the reduction in the unimplemented procurement track is eased and the implemented procurement track is moderately renewed or linked, the sector's valuation and earnings certainty are expected to see a recovery. There is optimism for a turning point in the medical device industry, with product innovation expected to provide continuous catalysts, internationalization, and mergers opening up long-term opportunities.