Demand for Oximeters Surges in China as Firms Expand Production Capacity

As the Omicron coronavirus variant spreads across China, the risk of silent hypoxia to the elderly population has received significant attention. As an effective means to monitor blood oxygen level and prevent critical illness, oximeters are now selling rapidly.

Most oximeters are used in hospitals, but some people with underlying conditions also use them at home. However, before the widespread outbreak of COVID in China, the attention paid to blood oxygen monitoring was not high and the penetration rate of oximeters was not sufficient. It has been reported that on major Chinese e-commerce platforms, oximeter products are out of stock or in pre-sale status.

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The scarcity of oximeters has quickly led to changes in the capital market. On December 28, stocks related to oximeter manufacturers skyrocketed. As of the close of the day, medical firms Lifesense and Apon Medical reached their daily limit, Contec Medical Systems had risen by 17.87%, and Biolight and Cofoe Medical Technology rose by over 10%.

At the same time, a shortage in the market has made people pay a lot of attention to the listed companies that produce oximeters. Given the original downward operating conditions of various listed companies, the hot sale of oximeters is expected to bring a wave of year-end performance increases for them.

Contec Medical Systems, the world’s largest oximeter supplier, recently stated on a Chinese investor Q&A platform that the company has increased its production line according to the rising orders. The current output of oximeters exceeds 100,000 units per set, and the company will continue to expand its production capacity according to order and market demand.

“The company is going all out to expand production capacity by adjusting production lines and increasing employee recruitment to ensure timely delivery of orders,” said Contec Medical Systems.

Revenue of related public companies in the first three quarters of this year was not outstanding. For example, in the first three quarters of 2022, Contec Medical Systems’s revenue was 462 million yuan ($66.2million), down 35.75% year-on-year. The net profit attributable to its shareholders of listed companies was 174 million yuan, down 39.53% year-on-year. Another company, Yuyue Medical, saw revenue of 5.116 billion yuan, down 3.65% year-on-year, while the net profit attributable to its shareholders of listed companies was 1.135 billion yuan, down 15.99% year-on-year.