Events:
On July 21, 2023, the company issued a voluntary performance announcement for the first half of the year (from January 1, 2023 to June 30, 2023). The company achieved operating income of RMB2.20-230 million, an increase of 85.2-93.6% over the same period last year.
Comments:
TAVR planting volume data is eye-catching, market share is further expanded.
The company's TAVR products (transcatheter aortic valve replacement products, including first-generation products TaurusOne, second-generation recyclable products TaurusElite) accelerated commercialization, with more than 1200 implants completed in the first half of the year, an increase of more than 100 percent over the same period last year, equivalent to 22 years of implantation in half a year. Over the past year, the provincial and municipal health insurance bureaus have successively included the cost of TAVR consumables into the health insurance, and there has been a significant improvement in the payer. We expect the industry to grow by about 50% for the whole year; the company's growth rate has comprehensively exceeded the industry's growth rate, and its market share has been expanding continuously. We estimate that the domestic market share of the company's TAVR has reached 20%.
The nerve intervention plate exceeded expectations, and the ischemic products were released quickly.
The company's existing nerve intervention products include Tethys intermediate guide catheter, SacSpeed balloon dilatation catheter, Jasper coil, Syphonet thrombectomy stent, Fastunnel transport balloon dilatation catheter, etc., among which the revenue growth rate of ischemic products such as SacSpeed and Fastunnel is outstanding, and the nerve intervention plate is expected to grow by more than 70% in the first half of the year compared with the same period last year. We are optimistic about the steady volume of spring coils in 23H2, and more ischemic products will usher in performance catalysis.
Investment advice: maintain a "buy" rating
At the same time, the company has strong R & D strength and commercial ability, which is the target of high-quality innovative medical devices driven by "valve + Shenjie". We estimate that the company's total revenue from 2023 to 2025 will be 439 million yuan (618,865 million yuan), an increase of 75%, 41% and 40% respectively over the same period last year. Considering that the company has not yet made a profit, we take the average PS of the comparable company as the valuation reference of Peijia Medical: as of June 20, 2023, the average PS of the Hong Kong stock comparable company in 2023-2025 is 8-6-4, and we predict that the PS of the company in 2023-2025 is double that of 9-6-5. Maintain a "buy" rating.
Risk hint
Product R & D progress and commercialization are less than expected risk; competition aggravates risk; Hong Kong stock valuation risk.