Core ideas:
Core business has been affected by the epidemic at home, while overseas business has maintained steady growth. Recently, the company issued a 22H1 performance announcement, achieving a revenue of US $405 million (YOY+10.1%, excluding the exchange rate impact, the same below), and the core business of the company as a whole maintained steady growth. From the perspective of core business, (1) the operating income of coronary artery business 22H1 is 60.7 million US dollars (YOY-7.2%), which is mainly affected by the domestic epidemic, of which overseas income is 9.9 million US dollars (YOY+28.1%). (2) Orthopaedic business realized income of US $108 million (YOY+2.4%) and overseas income of US $99.7 million (YOY+9.7%). Affected by domestic collection and epidemic situation, overseas growth was steady. (3) the heart rate business realized revenue of US $104 million (YOY+7.2%) and overseas revenue of US $98.9 million (YOY+8.1%) thanks to the release of new products.
Large arteries, nerve intervention and valve business have grown to withstand the pressure of the epidemic. Large arteries and peripheral vascular, nerve intervention and heart valve business withstood the pressure of the epidemic, recording income growth of 26.6%, 22.9% and 44.8%, respectively, excluding the impact of exchange rates. Tumai first-generation products were approved to be listed in China in January 2022, and the second-generation multidisciplinary clinical products have been completed and are expected to be approved in the first half of 23 years; Swan has obtained the registration of NMPA and FDA.
Research and development will continue to move forward. 22H1 spends $186 million on research and development, of which robotics and emerging businesses are expected to be relatively large. It is expected that 22 years will continue to invest in research and development.
Profit forecast and investment advice. The estimated operating income for 22-24 is US $9.57,12.57 and 1.802 billion. As a leading domestic equipment company, the company will continue to benefit from research and development and continuous product volume in the future. according to the DCF valuation, we give the company a fair value of HK $22.06 per share (HK $7.85 / US $) and maintain a "buy" rating.
Risk hint. Research and development progress is not as expected, overseas commercialization is not as expected, and policy impact.