A few years ago, the network has engaged in a selection of activities, the name is very exaggerated:
Than drug trafficking is also profitable ten industries.
The top three industries on this list are unexpected:
Dentistry, milk tea, glasses.
Some people have calculated that 1.4 billion Chinese people, the average mouth has 22 teeth, the total is 30 billion teeth.
Any business multiplied by 1.4 billion is an unimaginably large market, let alone teeth.
1
"Growing a tooth is equivalent to buying a BMW"
The dental "crisis" is far more serious than we thought.
In September 2017, the former National Health Planning Commission released the "Fourth National Oral Health Epidemiological Survey" shows that China's middle-aged and elderly people in poor periodontal condition, per capita missing teeth 6 to 9 teeth. Among them, the middle-aged and young people (35~44 years old), the rate of missing teeth is about 36.4%; the situation is more serious in the elderly (65~74 years old), the rate of missing teeth reaches 86%.
Even more exaggerated data comes from the 2019 White Paper on Dietary Habits and Oral Health, which shows that up to 93% of the population in China has oral problems. In other words:
On average, only 7 out of every 100 people have a normal mouth.
Hot and cold, sweet and sour dare not eat, the pain in the middle of the night is unbearable, but also affects the image of ...... every person who is plagued by teeth, have had the urge to pull out and replace the teeth.
Especially young people, and even some people tease, following the head bald, forgetfulness, long spots, waist waste, after this session of 90, teeth are gone.
When you make up your mind to go to the dentist, the moment you come to the dental clinic, you are dumbfounded -
In the media reports, there are not a few examples of people who spend a lot of money to replace their teeth:
In 2019, Zhao Yuguo (a pseudonym) from Shanghai planted 2 teeth,*** spending more than 60,000 yuan.
In 2018, Yu Hao (a pseudonym) from Beijing was ready to implant 1 porcelain incisor, spending a total of nearly 30,000 yuan, which was equivalent to nearly three months of his salary at the time.
In 2017, 52-year-old Ms. Zhou went to Wuhan University Stomatological Hospital to plant teeth, played 14 implantation nails, fixed 28 teeth, spent nearly 200,000 yuan ......
Even the National Committee of the Chinese People's Political Consultative Conference (CPPCC) member and vice president of the School of Stomatology of Peking University, Prof. Lin Ye, also lamented.
Even Prof. Lin Ye, vice president of the Peking University School of Stomatology, lamented that the planting of a full mouth is enough to buy a BMW!
A BMW is about 400,000 RMB, which is enough to buy a suite in many counties.
At a time when 600 million people earn less than 1,000 yuan a month, a dental visit is simply the price of heaven.
And, because half or even more than 60% of the dental care are now young people, a few years ago, the topic of "90 after the dental bankruptcy" once ran on the microblogging hot search.
According to the 2020 China Oral Healthcare Industry Report, the number of dental implants in China in 2020 reached about 4.06 million, one of the world's fastest-growing dental implant market, with a market size of nearly 160 billion yuan.
Behind this 160 billion yuan, it is the countless people who are plagued by teeth piled up with real money.
"If you don't see a dentist, your teeth hurt; if you see a dentist, your heart hurts."
- I am afraid this is the truest portrayal of their hearts.
2
What is so expensive about dental implants?
In the face of such a high price, many people cover their teeth while discouraged: this tooth, much more expensive than gold!
Dental implants, why are they so expensive?
In order to find the answer to this question, I picked up the upstream and downstream of dental implants.
The industry can be roughly divided into three parts:
Upstream: equipment and consumables companies
Midstream: instrument distributors
Downstream: oral healthcare institutions
Photo source arterial network
In this industrial chain, the upper reaches of the dental material is extremely expensive.
A solid reality is that, due to technical barriers and other reasons, 90% of domestic dental implants are currently monopolized by Swiss, German and Korean brands. Among them, the Swiss ITI implants cost around 6,000-20,000 yuan; the German BEGO implants cost 5,000-10,000 yuan; and the low-end Korean JUST implants cost 5,000-8,000 yuan.
In addition to the high cost of imported dental implants, implants in the hands of consumers before reaching the manufacturers, national general agents, local agents, bidding agents, hospitals and other aspects of the markup, the price of soaring inevitable.
In the downstream, the cost comes mainly from the dentist.
In the view of many people, the dentist's job is just to pull out a tooth and install a tooth, simple as that. But in fact, dentists, like other doctors, are highly specialized and costly to train.
A professional dentist goes through a long training process:
10 years of undergraduate and graduate studies + 3+ years of clinical and compliance training, totaling 13 years or more. In some cases, further training can take up to 16-17 years.
On top of that, dental practice is a relatively time-consuming and intense job, and there is no way to reduce the turnover rate of daily dental procedures. Dentistry was one of the longest shutdown healthcare services during the epidemic because
Doctors frothed saliva and blood while grinding teeth, and the risk of in-office cross-transmission was extremely high in the event that a patient carried any infectious virus.
Besides the high cost of training, the more critical reason is scarcity.
The China Health and Family Planning Statistical Yearbook 2017 shows that there are 167,227 practicing dentists (including practicing assistants) across the country***, accounting for 5.3% of all practicing dentists (including practicing assistants), with an average of 16.7 dentists per 100,000 people, much lower than South Korea's 45, the United Kingdom's 54, Australia's 57, and the United States' 63. 57, 63 in the United States, and 83 in Germany.
The high cost and scarcity of dental talent has kept their fees high as well.
This can also be seen in the financial report of Tongze Medical, a leading dental hospital company. Its operating costs have been around 55% for a long time, and the composition of operating costs is mainly product materials and medical staff remuneration, of which medical staff remuneration can account for 70% of operating costs.
In other words, dentists are craftsmen who rely on their skills.
Another point, veneers, porcelain teeth, scaling, orthodontics, dental implants, these items, basically are not included in the medical insurance, because in the current concept, these are not treatments, but rather, "medical aesthetic" program.
The high cost and lack of reimbursement from Medicare makes it no surprise that dental implants are expensive.
3
The plummeting "teeth"
The business of 30 billion teeth, the market size of 160 billion, is just a small starting point.
As soon as the market expands, the capital is frenzied. Open the eye of the sky to check input keywords "dental", out of the relevant companies as many as 27437. Just the newly established cosmetic dentistry, dental health, dental restoration and other enterprises, there are more than 7,000.
In this, we have to mention the Tongze medical. at the end of 2017, the share price of Tongze medical is still hovering around 30 yuan. But by the middle of 2021, this company's share price once soared to 320 yuan:
In just three years, the increase is nearly 10 times.
This is why Tongze Medical is also known as "Maotai in the teeth".
But no one expected, just more than half a year, the total market value of Tongce medical has been cut back to the starting point. As of February 15, 2022, the total market value of Tongce Medical reported 49.962 billion, the market value shrunk more than 80 billion yuan.
Calculated from the high point, the share price of Tongce Medical has fallen more than 60%, almost back to the liberation before.
In theory, the dental market is so hot, Tongce Medical is the head of the enterprise, it should be prosperous, why will suffer such a plunge?
Some answers can be found in the financial report of Tongce Medical.
In the first three quarters of 2021, Tongce Medical had revenue of 2.136 billion yuan, up 44.16% year-on-year. Looking at the third quarter alone, revenue grew 12.44% year-on-year, up 19.4% sequentially, and net attributable profit grew 5.88% year-on-year, up 44.6% sequentially.
This growth rate seems okay at first glance, but because of the previous institutions generally expected at least double-digit growth, is really Waterloo.
The more important reason for the slow performance comes from the collection.
In August last year, the Zhejiang Ningbo Health Insurance Bureau, a document called "on the further clarification of the health insurance calendar year account to pay for dental implants program (draft)", which explicitly mentions:
will "adjust the oral implant dental project overall health insurance payment standards" as the work goal, and said on the charging standard work goal, and on the fee standard said "catalog of domestic brands of dental implants fee standard for each 3,000 yuan, catalog of imported brands of dental implants fee standard for each 3,500 yuan."
Once the real collection price reduction, the Tongce medical is undoubtedly a fatal blow.
According to Phoenix Finance's statistics, the gross profit margin of Tongce Medical in Zhejiang Province is as high as 46.9%, and the gross profit margin outside the province is only 28.3%, a difference of nearly double.
More critically, the vast majority of Tongce Medical's revenue comes from within Zhejiang Province. In 2020, 90% of Tongce Medical's revenue will come from Zhejiang Province, and Hangkou Hospital alone will support 80% of Tongce Medical's profits.
Figure source Yio
Once the base camp is breached, the ripple effect on profits can be imagined, and it's no wonder the market is so worried.
4
Epilogue
Just a few days ago, Tongze Medical was on fire again.
This time, it wasn't because of teeth, it wasn't because of earnings, it wasn't because of the stock price, it was because of the chairman.
On February 7, the chairman of the board of directors of Tongce Medical, Lu Jianming, sent a microblogging, showing the movement of incense burning in the temple, but inadvertently exposed himself in violation of the local epidemic prevention policy, "open the door" into the temple behavior.
This wave of "Versailles" was caught by the masses, criticized, they have to tease:
Is it really the Buddha ferry have "yuan" people?
Looking back, Tongce medical by a successful public hospital restructuring and rise, a leap to become the first A-share medical services listed company. Backed by high-quality hospital assets, Tongce Medical does have a unique advantage in customer resources, market share, business model, and so on, and has therefore been rewarded by the market.
But in front of the wind and waves of the times, "burning incense and worshiping Buddha" is useless, to stay up is the king's way.
This is true for both the medical and dental industries.
You think he is in the wind, but in fact he is in the tip of the wave.