Main points of investment
The two sectors maintained rapid growth: the company achieved operating income of 119 million yuan in the first half of 2022, an increase of 129.8% over the same period in 2021 and 40.0% month-on-month compared with the second half of 2021. The revenue of the valve business segment reached 52.103 million yuan, an increase of 455.4% over the same period in 2021 and 60.0% month-on-month compared with the second half of 2021. This is mainly due to the commercialization of TaurusElite's second generation of recyclable TAVR products. The income of the neurobusiness sector reached 66.696 million yuan, an increase of 57.6% over the same period in 2021 and 27.6% month-on-month over the second half of 2021. This is mainly due to the rapid release of Tethys intermediate guide catheter and SacSpeed balloon dilatation catheter, as well as the commercialization of many new products such as Jasper SS intracranial electrolytic detachable coils.
The gross profit margin remained stable and the pressure on channel inventory was small: the company's overall gross profit margin decreased from 72.4% in the first half of 2021 to 70.0% in the first half of 2022, mainly due to the amortization of related products launched during the reporting period. At the same time, the company's overall channel inventory cycle is good, and the annual growth of sales revenue / average inventory ratio can see the improvement of the company's turnover efficiency.
The structure core pipeline continues to be rich, and the future growth is expected: the company's TaurusOne and TaurusElite product sales and implantation are making good progress, repeatedly setting new monthly highs. The total planting amount during the first half of 2022 far exceeded that of the whole year of 2021. As for the Becton Dickinson & Co project, JenaValve for aortic regurgitation is expected to enter a registered clinical stage in China in 2023. Mitral valve replacement system HighLife is currently conducting scientific and clinical trials of this product in West China Hospital of Sichuan University. Tricuspid valve replacement system MonarQ is in the stage of preclinical evaluation and is in preparation for FIM clinical trials. Mitral valve repair system Sutra Hemi Valve is currently in animal experiments. In terms of internal R & D pipeline, TaurusNXT uses non-aldehyde cross-linked biological tissue treatment technology, which is expected to greatly improve the durability and biocompatibility of artificial aortic valve, and is currently promoting multicenter registration clinical trials. TaurusApex uses polymer materials instead of biomaterials and is currently in the process of animal trials and related long-term follow-up and evaluation. The shock wave calcification reconstruction system TaurusWave is currently being promoted by FIM. Mitral-tricuspid valve repair system GeminiOne is currently in the preclinical preparation stage.
Our point of view: the company's TAVR valve business accelerates the commercialization of the sinking market and is expected to make a strong contribution to the performance in the future; at the same time, the nerve intervention business is also favorable by the domestic substitution trend and continues to increase market share. It is recommended that active attention be paid to it.
Risk hint: pipeline research and development progress is not as expected, market commercialization is not as expected, policy collection risk.