[Industry must read] How big is the gap between a brother and a doctor in the medical device industry?

Huawei’s sales in the last five years have risen steadily from RMB 220 billion in 2012 to 520 billion in 2016, with a compound annual growth rate of over 20%. Not only in the Chinese enterprises, but also in the world, it is difficult to find an adversary.

Our world medical equipment, a brother of Medtronic, also climbed to the throne of the world after purchasing huge money in 2016, and the sales revenue was only 196 billion yuan.

In terms of business growth, the sales growth rate in 2016 was even higher than that of Huawei, reaching 42.3%. However, we know that Huawei's growth is due to its strength, organic growth, and Medtronic's merger and acquisition growth after the acquisition of Ke Hui. If we look at Medtronic's 2012, 2013 and 2014 before the acquisition of Kehui, we find that the growth rate is only 2.5%, which is almost negligible.

In terms of gross profit margin and net profit margin, Medtronic wins Huawei, which is also a concentrated portrayal of the characteristics of the medical device industry. Compared with the communications and electronics industries, the competition in the medical device industry is not intense, so you can enjoy a better competitive dividend. The competition in which Huawei is located is very fierce. It is basically a stifle between giants. The gross profit margin and net profit margin are naturally lower.

In terms of R&D investment, Medtronic has exceeded the average level of the medical device industry, and our Huawei investment in R&D is a strategic investment. Many companies are hard to find their backs. I am afraid this is the most feared by the opponents.

Interestingly, Huawei's per capita efficiency is much higher than that of Medtronic, which also shows that Huawei's competitiveness in the world is unparalleled.