Guided by the concept of value investment, more and more oversold sectors with investment value have received market attention this year, and this phenomenon has been particularly prominent in the context of the overall market adjustment this week. Among them, the medical device sector, where concept stocks are generally at a low stock price, rose against the market yesterday. According to data, the sector rose by 0.42% as a whole yesterday. Among them, Tianhua Ultra-clean (3.76%), Tigermed (3.61%), Individual stocks such as Lao People (3.0%) performed more prominently, with gains of more than 3% yesterday.

On the news, recently, the "Medical Device Standards Plan (2018-2020)" (referred to as the "Plan") organized and formulated by the State Food and Drug Administration was officially issued. The overall goals of the medical device standard system required for device supervision, "the international cooperation and exchange of medical device standardization will be deeper, and the international influence and voice will gradually increase". At the same time, it also pointed out that "standardize standard management and effectively improve the quality of medical device standards" Six main tasks. In this regard, industry insiders said that frequent policy efforts are expected to enhance the international influence of my country's medical device companies, accelerate the import substitution process of domestic medical devices, and help my country's medical device field enter the golden age.

What does not match the industry's good policy and fundamentals is the overall weak market performance of the sector. According to statistics, since May 11, 2017, a total of 47 stocks in the sector have experienced a cumulative decline in stock prices, which is in sharp contrast to the strong trend of the Shanghai Composite Index, which rose nearly 500 points during the same period. In fact, as of yesterday, the share prices of some blue-chip stocks in the sector are still in the bottom range since 2017. Based on the frontier closing price and the lower price since 2017 (pre-reversion), Sanxin Medical, Jointown, Shangrong Medical, The cutting-edge closing prices of 8 stocks including Chengyitong, Dean Diagnostics, Jiashitang, Luyan Pharmaceuticals, and Bohui Innovation only rose less than 5% from the lower prices since 2017. In addition, Kehua Bio, Zhongyuan shares, Swiss The cutting-edge closing prices of individual stocks such as Kang Medicine, Changlu, Huangshan Capsule, Tianhua Super-Clean, Boshi, and Jinhua are still less than 10% higher than the lower prices since 2017. Benefiting from the increase in demand and the support of policies, the medical device industry as a whole also maintains a relatively rapid growth in performance. According to statistics, the "Securities Daily" market research center found that as of yesterday, a total of 57 medical device listed companies in the two cities have disclosed their 2017 annual report performance forecasts, of which 47 companies have a good performance, accounting for more than 80%. Among them, BOE A, Xingpu Medical, Tigermed, Jinhua, Tianhua Super-clean and other companies are expected to double the year-on-year performance in 2017. In addition, *ST Jianfeng, Guofa, Chitianhua and other companies are also expected During the reporting period, it achieved a year-on-year turnaround.