Investment Research of China Medical Device Industry under the Concept of Corporate Finance — Take Yuyue Medical Co., Ltd. as Example

Abstract

With the optimization of China’s healthcare policy, the rise of the aging population, the increasing health awareness of society, and the impact of the global epidemic, China’s medical device industry has become a key market for investors. However, compared with the mature and well-funded medical device companies in overseas developed countries, China’s local medical device companies have apparent disadvantages and jumping battles. Yuyue Medical Co., Ltd. is a prominent player in the medical device industry in China, having sustained a significant profit margin over an extended period. Its profitability has changed over the post-epidemic period, in any case. Given Yuyue Medical Co., Ltd.’s exceptional standing in the medical equipment sector, an analysis of the company as an industry investment case makes sense. Based on Yuyue Medical Co., Ltd. as the industry investment benchmark, the study analyses the industry’s competitive development situation, financial performance, and impact on the external environment by adopting Porter’s Five Forces, ratio analysis, and PESTEL. The study found that China’s medical device industry has growth potential due to the low bargaining power of customers and suppliers, high technological barriers, and low threat of substitution by new entrants. Yuyue Medical Co., Ltd. has healthy financial performance and several advantages from the external environment, so Yuyue Medical Co., Ltd. is worthy of investment.