Items:
The company released its mid-2022 report that its revenue was 119 million yuan, an increase of 129.8% over the same period last year, a gross profit of 83.2 million yuan, an increase of 122.5% over the same period last year, and a loss of 91.79 million yuan before income tax.
Comments:
The amount of TAVR is rapid. In the first half of the year, the business income of transcatheter valvular therapy was 52 million yuan, an increase of 455.4% over the same period last year. The total planting amount in the first half of this year far exceeded the level of the whole year of 2021, and the monthly planting amount repeatedly reached record highs. In July, the planting amount accounted for nearly 20 percent of the market share, and nearly 650 plants were planted in the first seven months, reaching more than twice the annual planting level in 2021. As of July 31, 2022, within a year or so after forensics, first-and second-generation TAVR products have entered 209 hospitals.
The business of nerve intervention is growing rapidly. In the first half of the year, the income of the neural intervention business was 67 million yuan, an increase of 57.6% over the same period last year.
The revenue of hemorrhagic, ischemic and vascular pathway products accounted for 44.2%, 25.0% and 30.6% of the business income of neural intervention, respectively. The growth was mainly due to increased sales of existing nerve intervention products (including Tethys intermediate guidance catheter and SacSpeed balloon dilatation catheter) and the commercialization of a number of new nerve intervention products (including Jasper SS intracranial electrolytic detachable coils, etc.).
Rich in pipeline research. As of 22H1, the company has 19 registered products and 16 products under development. There are 9 types of transcatheter valvular therapy under development, of which 3 projects are about to enter the human clinical phase, GeminiOne and MonarQ will enter the registered clinical phase and overseas FIH clinical phase respectively, and HighLife will soon enter the registered clinical phase. There are 7 types in the field of neurointervention, and the company has a comprehensive portfolio of registered products and pipelines for hemorrhagic and ischemic stroke in the field of neurointervention.
Investment advice: due to the uncertainty of the epidemic and the release of new products, we downgrade our profit forecast and estimate that the company's annual income for 22-24 is 2.73,4.96 and 805 million yuan (the original forecast is 2.78,5.23 and 886 million yuan). The corresponding growth rate is 99.0%, 81.5% and 62.4%. The net profit was-4.20,3.29 and-165 million yuan (the original predicted value was-4.08,3.15 and-158 million yuan), and the EPS was-0.62,0.49 and-0.24yuan. According to DCF estimates, the reasonable market capitalization of the company should be 5 billion yuan (corresponding to the share price of HK $8.50), maintaining the "recommended" rating.
Risk tips: 1, the progress of commercialization of new products is not up to expectations; 2, market competition is intensified.