Another trillion yuan? ! "Tooth fever" set off again! The dental clinic is crowded! Why is it so expensive for a tooth of 20,000 yuan?
With the approach of the summer vacation, many dental clinics ushered in a wave of students, especially the demand for orthodontics projects, and the number of some dental clinics increased by about 50% year-on-year.
Orthodontic fever ushered in the summer
Part of dental clinics increased by 50% year-on-year
At a dental clinic on Huashan Road in Shanghai, the reporter saw some young people in the waiting area at the front desk during the weekend, waiting for the doctor to see their teeth.
Chen Min, the store manager of a dental chain in Shanghai: The number of patients undergoing corrections in outpatient clinics is now exploding, and the number has increased by about 50% compared with last year.
In the dental clinic, the reporter met Xiao Liu who came to straighten her teeth. She had just taken the college entrance examination this year. She was tall and planned to apply for modeling. Because her teeth were a bit protruding, Xiao Liu's parents also I am very supportive of her to correct her teeth.
Luo Gang, Chief Medical Officer of a Shanghai Dental Medical Institution: As far as orthodontics is concerned, what we are currently seeing is that the industry growth rate should be very fast, at least 20 to 30% per year.
In addition to the increase in the number of young people who have their teeth corrected, the number of middle-aged and elderly people who come to the dental department for dental implants is also increasing year by year.
Old man Yang from Shanghai, 78 years old, came to plant teeth with his wife today. He has planted three teeth.
It is understood that orthodontics and dental implants have become the two golden tracks of the dental medical industry.
In the past five years, the average annual growth rate of my country's dental medical industry market size was 16%. By 2020, the market size has exceeded 100 billion yuan, a year-on-year increase of 7.8%. It is estimated that by 2035, the dental market size will reach 1 trillion yuan.
High material and labor costs
Part of the dental visit costs over 10,000 yuan
Treatment and medical aesthetics are the two most important needs of dental medicine. Because some items in the dentistry department cannot be covered by medical insurance, relevant medical institutions have absolute pricing autonomy, such as orthodontics, implants, and all-ceramic patches. , Ranging from a few thousand yuan to a few hundred thousand yuan, why is the cost so high?
The reporter learned from many oral medical institutions in Shanghai that the current orthodontics on the market are mainly divided into traditional wire braces and invisible braces.
The price of wire braces ranges from 10,000 yuan to 30,000 yuan, and the price of invisible braces is more expensive, domestic brands cost 20,000 to 30,000 yuan, and imported brands cost 40,000 to 50,000 yuan.
The reporter learned in the interview that because dental implants, orthodontics and other items are not covered by medical insurance reimbursement, many people think that dental care is a bit expensive.
At present, the cost of dental implants is between 8,000 and 20,000 yuan depending on the material. If a full tooth is implanted, the cost is between 100,000 and 500,000 yuan.
And if you do a digital aesthetic project, that is, all-ceramic dental patches, the cost is about 100,000 yuan.
Wang Fang, Dean of a Shanghai Dental Clinic: At least half of our expenses go to the supplier, that is to say, the supplier of invisible correction or the manufacturer of invisible correction.
Material costs accounted for nearly half.
Dental implants are currently the most expensive item in dental treatment.
Ninety percent of implants are monopolized by imported products. Coupled with the cumulative cost of each link from the factory to the hospital, a few thousand yuan of products will become tens of thousands of yuan in the hands of patients.
Tian Lining, vice president and secretary-general of a dental association: medical staff have a lot of labor in it, and the proportion of labor costs may also be relatively high. The amortization of the administrative expenses of dental institutions and the source of marketing expenses, relatively speaking, Its profit margin should be said to be an appropriate level, and the gross profit margin may be around 60%.
The gross profit margin of listed companies in the dental industry exceeds 45%
Stock price performance is dazzling
Although most dental practitioners are reluctant to answer financial data in the face of reporters’ interviews, the average gross profit margin of the industry has exceeded 45% from the data disclosed by listed companies.
At present, there are 6 listed dental-related companies in China, among which 4 companies, Tongce Medical, National Ceramic Materials, Meiya Optoelectronics, and Zhenghai Biological, are listed on A-shares, and 2 companies, Time Angel and Modern Dental, are listed on Hong Kong stocks.
In terms of financial data, the top three operating revenues in 2020 are National Ceramic Materials, Tongce Medical, and Modern Dental, which are 2.516 billion yuan, 2.083 billion yuan, and 1.849 billion yuan respectively.
The highest gross profit margin is Zhenghai Bio, whose main business is oral repair membranes, with a gross profit margin of 92.17%; followed by Times Angel, which is listed on the Hong Kong stock market. The company's main business is invisible appliances, with a gross profit margin of 70.43%; the remaining 4 companies have gross profit margins. Interest rates are all over 45%.
Since the beginning of this year, Tongce Medical's stock price has risen by more than 30%, Zhenghai Bio-tech has risen by more than 20%, and Meiya Optoelectronics' stock price has risen by about 20%.
Ma Shuai, chief analyst of Essence Securities Pharmaceuticals: Currently, the absolute number of listed companies related to oral cavity is not many, so everyone's overall valuation is relatively high.
We believe that this kind of high valuation has three elements. The first element is scarcity, and the scarcity of things is precious; the second element is mainly the high prosperity of the industry; the third element is the superimposition of the historical performance of the company, and High growth in expected performance in the future.
We think such a high valuation is completely understandable.