[Comprehensive] Lanfan Medical has not been affected by "Trade Warfare Escalation" because PVC gloves are just needed

In the Qingming Holiday just past, the trade war between China and the United States further escalated. Many A-share listed companies have been implicated, and trade frictions between China and the United States have intensified. Many institutions and listed companies have also issued their opinions. . Lanfan Medical, which is a medical device manufacturer with nearly 90% of its sales revenue from overseas, stated that the company’s main PVC gloves have not been affected and hit in this trade war, because the product is of necessity and indispensable to the United States. As an alternative, second, PVC gloves are low-value consumables and are not part of this category of Sino-US trade war restrictions.

Talking about the company's main business: it will not be affected and hit in this trade war

According to public information, Lanfan Medical is a company specializing in the production of health protective gloves and medical accessories. The annual report data previously disclosed by Lanfan Medical indicated that in 2017, the company sold a total of 14.619 billion health protective gloves and achieved an operating income of 1.576 billion yuan, an increase of 22.28% over the same period of the previous year. The net profit for the same period was 201 million yuan, a year-on-year increase of 10.93%. %. It is worth noting that nearly 90% of Lanfan Medical's revenue comes from overseas medical device providers.

For companies such as Lanfan Medical, whose main business income is highly dependent on overseas markets, with the continued Sino-US trade war, “whether the company's business will be implicated and affected” has become the focus of market attention. The reporter also interviewed Lanfan Medical on this issue, and the other party gave positive feedback that “the blue sail medical PVC product will not be affected and impacted in this trade war.” Lanfan Medical further explained that: "First, most of the world's PVC gloves are produced in China. Their production capacity in the United States is zero and they all depend on imports. PVC gloves are just as necessary and irreplaceable to the United States; , Lanfan Medical's PVC gloves are low-value consumables, not in the China-US trade war restrictions on the category of goods; the other part of the US market is only a part of Lanfan Medical Overseas Market, its products are also sold to Europe and Japan and other places. In addition, as far as the reporter knows, no European and American developed countries have ever traded PVC gloves and have not raised tariffs significantly.

Cross-border bid targets: R&D, production and sales are all in Singapore

In addition, Lanfan Medical also responded in the interview whether the "US-US trade war escalation" will affect the heart stenting business of the just-acquired Parkson International. Lanfan Medical stated that while Perkins International is mainly engaged in the research, development, production and sales of high-end products such as interventional cardiac surgical instruments, the Singapore-based subsidiary companies are responsible for the BioFamily series of stents exported to Europe and the United States from R&D to production and sales. The Jiyue TM series stents produced by Jiwei Medical, a domestic subsidiary, are sold only in China, so their high-end medical device products have not been affected or affected in this trade war.

The announcement issued by Lanfan Medical on March 28 shows that the company’s acquisition of 93.37% of the shares of Bosheng International Group has been unconditionally passed by the CSRC, and the transaction price is approximately RMB5.895 billion. It is understood that this is the largest merger of medical equipment companies in the history of A shares. case. According to statistics, Parkson International is the world's fourth-largest heart stent manufacturer and the top three in domestic cardiac stenting.

"At the beginning of the heart" has not changed: to create a world-class comprehensive medical industry leader

Then, in the face of continued escalation of trade frictions between China and the United States, will Lanfan Medical shift the focus of its business operations to China? Lanfan Medical stated that the company’s strategy to create a world-class leader in comprehensive healthcare has not changed. Ping An Securities analyst Pavin Chao commented in the research report that “Lanfan Medical’s acquisition of Bai Sheng International Shares” in addition to greatly increasing the performance of Lan Fan Medical, it also enabled the company to gain a global operating platform of Parkson International. As a bridgehead for future international expansion and the diversified development of medical device business.

Lanfan Medical also stated that the company's next step is to strive to become the first brand in the field of medical protection in China through three to five years of efforts, and gradually grow into a world-leading large-scale integrated medical device platform with international competitiveness.