The company released its annual results for 2021, and its revenue was in line with expectations.
In 2021, the company achieved operating income of 416 million yuan, an increase of 50.6% over the same period last year, in line with expectations. Shareholders belonging to the parent company lost 374 million yuan, compared with 182 million yuan in the same period last year. The expansion of the loss was mainly due to the further increase in sales and R & D investment, and other expenses brought about by the impairment of intangible assets and goodwill.
Domestic TAVR continues to expand, and TPVR is expected to be approved in the European Union in the near future. TAVR products will contribute to the main revenue. VenusA-Valve and VenusA-Plus will achieve sales revenue of 405 million yuan in 2021, an increase of 49% over the same period last year. We estimate that there are about 3600 TAVR implants in the whole year, and the proportion of second-generation products is expected to exceed 35%. The company still maintains a leading position in the market share. TPVR (transcatheter pulmonary valve) has completed clinical trials in both China and the European Union and is expected to be certified by CE in the near future.
Self-development + M & An expansion pipeline, M & A strategy with a global perspective in the field of TAVR, the world's first fully released self-expandable dry valve Venus-PowerX and the new generation of ball expanded dry valve Venus-Vitae have been implanted in December 2021. Leaflex in the field of aortic valve repair completed the first clinical case of FIM in China in October 2021. The company acquired Cardiovalve for $266 million in December 2021, and its mitral valve replacement product is in the process of being enrolled in clinical trials in Europe. In September 2021, the company acquired Nuocheng Medical, whose Liwen RF for the treatment of hypertrophic cardiomyopathy has entered a multicenter clinical trial in China.
Investment suggestion: self-research + M & A to expand pipeline layout, the prospect of internationalization can be looked forward to in the short term. As the earliest company approved by TAVR products in China, the company has the first-mover advantages in R & D and sales, and is expected to maintain the leading position of TAVR market share. In the medium and long term, the company continues to expand the pipeline layout in the form of self-research and mergers and acquisitions, and overseas clinical and registration progress steadily, and is expected to grow into an innovative equipment leader in international layout. We expect the company's operating income from 2022 to 2024 to be 6.65,10.86 and 1.482 billion yuan, an increase of 60,63 and 36 per cent over the same period last year. According to the DCF model, the reasonable valuation range of the company is 83-10 billion Hong Kong dollars. Cover for the first time and give a buy rating.
Risk hints: the risk of continuous loss; the risk that product sales are not as expected; the risk that the progress of research and development is not as expected; the risk of new technology substitution; the risk of industry policy change