There was steady growth in the first half of the year, and the income structure was gradually diversified: in the first half of 2022, the company achieved operating income of 175 million yuan, an increase of 25.06% over the same period in 2021, and a net profit of 31.096 million yuan, successfully turning losses into profits. Among them, the core products AcoArt Orchid&Dhalia (used to prevent SFA/PPA stenosis or obstruction) and AcoArt Tulip&Litos (used to prevent BTK stenosis or obstruction) still contribute a large share of revenue, as high as 81.5%. But it has dropped significantly from 98.6% in the same period in 2021, indicating that the company's product revenue is becoming more and more diversified.

Among them, the peripheral suction catheter approved in November 2021 has been admitted to 950 hospitals (as of June 30, 2022). The rapid admission shows that the product effectively fills the gap in the market and meets the deep needs of clinical use. In addition, the radiofrequency ablation system was approved in April 2022; the peripheral support catheter was approved in July 2022; and AcoArt Orchid&Dhalia 's new indication of AVF stenosis was approved in July 2022 (244 subjects were followed up for 6 months, the patency rate was 91.4% in the DCB group, 66.9% in the PTA group and 46.4% in the DCB group).

In terms of gross profit margin, the company achieved a gross profit margin of 82.57% in the first half of 2022, down from 88.22% in the same period in 2021.

Our point of view: the continuous expansion of the company's core product DCB balloon indications ensures the steady growth of the company's performance, RF and suction platforms contribute to its performance. At the same time, the company actively layout upstream raw materials, the overall cost is expected to be further reduced. It is recommended to pay attention.

Risk hint: pipeline research and development progress is not as expected, market commercialization is not as expected, policy collection risk.