Main points of investment
In the first year of commercialization of the company's core products, both neural and peripheral product lines achieved rapid growth: in 2021, the company achieved operating income of 178 million yuan, an increase of 543.9% over the same period last year, of which the revenue of neurovascular intervention products reached 112 million yuan, an increase of 463.0% over the same period last year. Peripheral vascular intervention products reached 65.64 million yuan, an increase of 753.5% over the same period last year. Jiaolong intracranial thrombectomy stent, Ultrafree drug-eluting PTA balloon dilatation catheter and intracranial support catheter together contribute about 70% of the company's total revenue in 2021. The company has established a sound marketing network nationwide. As of December 31, 2021, the company's products cover more than 20 provinces and more than 2100 hospitals.
The company has a high degree of R & D investment, and the product portfolio continues to improve: the company has further increased R & D investment, with R & D expenditure of 168 million yuan in 2021, an increase of 133.26% over the same period last year, and the R & D expenditure rate reached 94.5%, reflecting that the company attaches great importance to R & D innovation. The company's R & D pipeline continues to blossom and bear fruit, and successfully launched 8 products in China in 2021, including intracranial PTA balloon dilatation catheter (Rx), balloon guided catheter (BGC) and intracranial aneurysm embolization coils, etc. At present, the company has a total of 55 listed / under research product combinations.
Actively carry out extension investment cooperation to cut into the field of active devices and surgical robots: in November 2021, the company signed a cooperation agreement with Hangzhou Tianlu Medical Service to obtain exclusive licenses for several proprietary technologies of intravascular lithotripsy (IVL) systems for the treatment of peripheral vascular diseases. In January 2022, the company made a strategic investment in Suzhou Weiya Medical, which focuses on the development of pan-vascular robots, giving priority to the exclusive sales rights of products developed by Weiya Medical Institute in specific areas where commercial advantages have been established. Strategic investment and cooperation will effectively give full play to the respective advantages of both parties, improve the efficiency of the company's product research and development, and help the company further expand the product matrix.
International layout continues: in 2021, two new products of the company obtained the CE mark, including intracranial thrombus aspiration catheter and thrombectomy stent microcatheter. As of December 31, 2021, the company has won the CE mark for a total of 8 products. The company's products have been successfully commercialized in a total of 11 countries across three continents, including France, Spain, Italy and Argentina. In addition, the company has carried out clinical trial design for major products in overseas markets, including UltraFree drug-eluting balloon II, IVL system and blood flow guiding devices.
Profit forecast and valuation: we expect the company's operating income to be 3.35,5.67 and 936 million yuan respectively from 2022 to 2024, maintaining a "prudent overweight" rating.
Risk hint: sales of core products are lower than expected, competition in the industry where the products are located is intensified, and industry policy risks such as centralized procurement may be faced in the future.