China Healthcare: Sep 2026 China hospital equipment bidding: growth beat mainly driven by volume, ASPs remain stable

September bidding data demonstrated robust momentum with a +28% yoy increase, aligning with our earlier projections. The significant expansion in CT (+39% yoy) and MRI (+44% yoy) equipment was mainly fueled by the accelerated implementation of trade-in initiatives, while the solid +30% growth in patient monitors was largely driven by replacement demand as devices acquired during the pandemic have now reached their renewal cycle. We anticipate this positive trend will persist through the fourth quarter. Addressing market concerns regarding volume-based procurement (VBP) for large medical imaging equipment, we believe the overall impact on United Imaging and Mindray will be limited: Mindray has no exposure to this category, and for United Imaging, only PET-CT, PET-MR, and LINAC products are affected. Based on our observations, ASPs for both LINAC and PET-CT in 3Q26 recorded single-digit increases, which are consistent with expectations from both our team and United Imaging, confirming th