Medical device stocks in 2024 are highly valued not only in short-term but also long-term investments. With the increasing demand for medical devices, the value of this stock has continuously peaked in the past two years. This reflects the general trend of the market, when investors and consumers both recognize the value and importance of medical devices in maintaining and improving health.
1. Introduction to medical equipment stocks
The medical equipment manufacturing and supply industry has become one of the prominent and attractive fields after the COVID-19 pandemic. Through the global health crisis, people realized that the availability of medical equipment is extremely important and essential for the development and protection of public health.
The medical device industry includes a wide range of products from oxygen ventilators, blood pressure monitors to other advanced medical devices. Even as life begins to stabilize, people's interest and attention to health continues to increase. This has created a solid foundation for the industry's future growth.
The group of medical equipment stocks in 2024 is assessed to have strong growth potential. The main reason is the increasing demand for medical equipment, with the awareness of protecting health and improving the quality of life being put first.
Enterprises in the industry have invested heavily in the production, supply and import and export of medical equipment to meet the growing demand of the market. At the same time, the government has also created favorable conditions for companies to produce and expand the market themselves, to ensure that everyone has the most complete and highest quality equipment in the medical field.
2. Opportunities for medical equipment stocks in 2024 to attract cash flow
The expansion of business conditions in the pharmaceutical industry creates a great opportunity for foreign corporations to invest in this field. This not only benefits businesses but also contributes to the development of the entire pharmaceutical market. When foreign corporations choose to invest in the pharmaceutical industry, they bring not only large capital but also experience and advanced technology. This helps to improve the quality of products and services in the industry, thereby creating strong competition and promoting the development of domestic enterprises.
Moreover, investment from foreign corporations also brings strong growth to the pharmaceutical market. The increase in investment capital and new technology helps expand production scale, improve product efficiency and quality, and create many job opportunities for workers in the industry.
In addition, the presence of foreign corporations also promotes the improvement and modernization of the pharmaceutical industry's infrastructure. Domestic enterprises will need to improve their competitiveness to meet the requirements and standards of the international market, thereby creating sustainable development for the entire industry.
The Ministry of Health is actively soliciting comments from ministries, sectors, and localities on the draft Law on Pharmacy, with the aim of submitting it to the National Assembly in May 2024 and expected to consider and approve it in October 2024. A notable point in this draft is the addition of business conditions for foreign-invested enterprises (FIEs) in the field of transporting drugs and pharmaceutical ingredients.
According to the draft, the Ministry of Health is creating more favorable conditions for FIEs to operate in the pharmaceutical industry. Specific regulations on drug transportation and distribution for FIEs will be issued after the Law on Pharmacy (amended) is passed, opening up many new opportunities for the industry.
From a market perspective, the analysis of HVA believes that expanding business conditions in the pharmaceutical industry will promote investment activities of foreign corporations in this field. It is expected that the pharmaceutical market size can reach about 7.89 billion USD by the end of 2024. Pharma Group also shares this view, saying that if pharmaceutical business conditions are expanded, the industry can achieve a growth rate of 15-20% in the period of 2025-2040, and the investment scale of the whole industry can reach 100 billion USD by 2040.
Reality has proven the strong attraction of the pharmaceutical industry to foreign investment capital from large corporations and long-term investment. Cooperation projects between FIE enterprises and large domestic corporations are quite common and vibrant. The business results of foreign pharmaceutical companies investing in domestic enterprises also show significant growth rates in revenue and profit. They focus on strongly expanding the pharmaceutical retail sector, thereby creating many new opportunities for the stock market in general and medical stocks in particular.
3. Top potential medical device stocks in 2024
In 2024, the medical device stock market promises to bring many attractive investment opportunities. Below is the list top medical device stocks 2024 potential:
3.1 Ben Tre Pharmaceutical Joint Stock Company – DBT
Ben Tre Pharmaceutical Joint Stock Company (DBT), or Ben Tre Pharmaceutical JSC in English, has gradually affirmed its position in the field of manufacturing and trading medical equipment and supplies since 2004. With the current charter capital of VND 142.05 billion, DBT has had a remarkable development journey since its transformation into a joint stock company and listing on the stock market.
Leading in the distribution of medical products from Gedeon Richter Company - a leading name in pharmaceuticals and medical equipment in Hungary, DBT has achieved remarkable growth. With a market capitalization of up to 224.23 billion VND and the volume of listed and outstanding shares reaching 15,625,477 units, DBT shows stability and trust from investors.
3.2 Vietnam Pharmaceutical Corporation – DVN
Vietnam Pharmaceutical Corporation (DVN), established in 1971, has quickly risen to become one of the leading pharmaceutical and medical equipment companies in Vietnam. Joining the UPCOM exchange since 2017 with a listed price of VND 10,400, DVN has demonstrated its strength and potential. With a charter capital of up to VND 2,370 billion, DVN is considered a financially strong enterprise.
Currently, DVN manages and operates 10 subsidiaries, of which 7 are listed on the stock exchange. These companies focus mainly on the pharmaceutical sector and import of medical equipment. With a market capitalization of up to VND 4,882.20 billion and a current stock price of over VND 20,000, DVN demonstrates stability and potential in the stock market.
3.3 Thai Nguyen International Joint Stock Company – TNH
Thai Nguyen International Joint Stock Company (TNH), established in 2014, although still young, has made great strides in development. The company's charter capital has increased from 69 billion VND to 518 billion VND. TNH debuted on the HOSE stock exchange with a starting price of 25 thousand VND.
Currently, TNH owns two major hospitals, Thai Nguyen International Hospital and Yen Binh General Hospital, two leading medical addresses in Thai Nguyen province. Providing medical equipment has become a spearhead in the company's development strategy.
Based on its business results and balance sheet, TNH shows significant growth potential. Gross profit in the past three years has always reached impressive figures from VND100 billion to VND200 billion. The ratio of equity and liabilities also has a high difference, showing stability and potential for long-term investors. With a market capitalization of up to VND2,665.31 billion and a current stock price of over VND27,000, TNH is proving to be an attractive choice in the medical equipment stock market in 2024.
3.4 Viet Nhat Medical Equipment Joint Stock Company – JVC
Vietnam Japan Medical Equipment Joint Stock Company, or JVCorp, was listed in 2011 with current charter capital of VND 1,125 billion. It manages two subsidiaries, Kyoto Medical Science Joint Stock Company and Vietnam Japan Medical Technology Investment Joint Stock Company.
JVCorp has strengths in supplying medical equipment from world-leading brands such as Hitachi and Fuji. They provide endoscopy, rehabilitation and surgical equipment. Two projects supplying CT and MRI equipment are Norred and Jica.
JVC stock code has had positive changes in the first 6 months of 2023, with the stock price continuously increasing and high liquidity, with a trading volume of up to more than 13 million shares in a week. With a market capitalization of up to 462.38 billion VND, JVCorp is one of the attractive options in the medical equipment stock market.
3.5 Domesco Medical Import Joint Stock Company – DMC
Domesco Company, established in 2004 with a charter capital of 60 billion VND, has rapidly developed and currently has a charter capital of up to 346.27 billion VND. As one of the first listed companies on the stock market, Domesco focuses on the production of drugs, medicinal materials and the supply of imported medical equipment products.
With a solid position in the healthcare sector, Domesco has achieved impressive business results. The company's profit margin is relatively high, with record growth from 2019 to 2022: VND 492 billion, VND 438 billion, VND 401 billion and VND 452 billion respectively.
With a market capitalization of up to VND 2,357.99 billion and a current stock price of over VND 67,000, Domesco is one of the notable choices in the medical equipment stock sector in 2024.
Source: Onstocks
