The company, which has accumulated many years in interventional medical devices and has a recognized market position in the industry, was established in 1999 and successfully listed on the Hong Kong Stock Exchange in 2011. Its business lines are mainly divided into three segments: structural heart disease, peripheral vascular disease, and pacing electrophysiology business. Among them, products for structural heart disease mainly include left ventricular ear blockers and congenital heart disease blockers; peripheral vascular disease products mainly include vena cava filters and laminating stents; and products in the pacing electrophysiology business mainly include pacemakers, which have not yet been officially listed. According to the company's annual report, it is expected to be marketed and sold in 2018, increasing the company's revenue type. Seizing the potential market opportunities for interventional medical devices and actively expanding the product line, the company continues to conduct in-depth research and development on peripheral vascular instruments. In 2017, the Ankura II aortic laminating stent system, LawMax puncture expander, and Sequre luminal capture system were registered and certified by the Food and Drug Administration, consolidating the product foundation. According to the company's annual report, the revenue of the company's peripheral vascular disease business was about 250 million yuan in 2017, an increase of 9.4% over the previous year; the revenue generated from the sale of laminated stents increased by about 18.9% year on year. It is expected that the company will continue to penetrate and explore potential markets in the future. The company covers a wide range of structural heart disease businesses, mainly involving left ventricular ear blockers (LAA blockers) and third-generation congenital heart disease blockers such as HeartR, Cera, and CeraFlex. The revenue of the structured heart disease business in 2017 was 159 million yuan, an increase of 27.9% over the previous year. With the company's further development, it is expected that this business will continue to grow steadily in the future. However, in June 2016, the company's Lambre left ventricular ear blocker was approved as the only LAA occlusion product in China. It contributed 3.2 million yuan in revenue for half a year in 2016 and 21.1 million yuan in 2017, and accounted for about 3% of the market share after only one and a half years of listing. Due to the current high import share of left ventricular ear blockers, as the company continues to seize market share, future revenue from left ventricular ear blockers can be expected. The company is actively exploring the pacemaker market: the “YY/T1553-2017 Cardiovascular Implant Heart Blockers” industry standard drafted by the company in 2017 was approved and implemented by the China Food and Drug Administration. The standard stipulates comprehensive requirements related to cardiac blockers, filling the gaps in Chinese and global standards in the cardiac blocker industry. Furthermore, the HeartTone pacemaker and TruSense implantable pacemaker electrical grade wire developed independently by the company have been registered and certified by the China Food and Drug Administration and are expected to be listed in 2018. If after listing, due to the current competitive pattern of the pacemaker market, the company is expected to gradually penetrate, achieve performance improvement, and officially enter the pacemaker electrophysiology business. R&D strength+sales layout consolidates its own strength. The company focuses on R&D investment. According to the company's annual report, the company's R&D investment in 2017 was 62 million yuan. The R&D revenue ratio has remained above 12% in recent years, consolidating the company's R&D strength, which is conducive to product innovation. According to the company's annual report, the company's R&D achievements were abundant in 2017. It has submitted 175 patent applications, including 110 patent applications from China, 27 patent applications from overseas, and 38 patent cooperation. 27 patents have been approved, and future R&D results can be expected. In terms of sales, according to the company's annual report, the company has further strengthened its distribution system by selecting high-quality distributors, while also expanding sales network coverage by increasing trade fair promotion activities. Currently, the company has distributors in many countries in Asia, Africa, North America, South America and Europe. At the same time, the company has set up an academic exchange platform and has held 50 student exchange events in China, Greece, Turkey, Russia, Kazakhstan, Indonesia, Thailand and other countries. After 5 years of development, the company's academic exchange platform has become a hub connecting cardiovascular experts from around the world to achieve rapid product sales. We expect net profit for 18-20 to be $1.80, $2.15, and $257 million, corresponding to EPS of $0.04, 0.05, and $0.06 (HK$0.05, 0.06, HK$0.07). Referring to the PE level of comparable companies in the same industry, the 2018 valuation of minimally invasive medicine was 54 times. Considering that Xianjian Technology is in a period of rapid growth, the company was valued 50-60 times in 2018, with a target price of HK$2.5-3, covering the “hold” rating for the first time. Risk warning: foreign exchange risk, risk of product sales falling short of expectations, risk of R&D falling short of expectations, risk of product listing falling short of expectations, etc.