Core ideas:

The operating data for the first half of the year are bright. Recently, the company issued a voluntary announcement on the unaudited operating data of 23H1. 22H1 achieved revenue of 2.2-230 million yuan, an increase of 85.2-93.6% over the same period last year, with a strong overall growth rate.

The market share of valve plate has been further expanded. The company's first-generation aortic valve product TaurusOne and the second generation recyclable product TaurusElite accelerate commercialization and further expand their market share.

Nerve intervention plate products enter the volume cycle. The company's existing nerve intervention products (including Tethys intermediate guide catheter, SacSpeed balloon dilatation catheter, Jasper intracranial electrolytic detachable coil and Syphonet thrombectomy stent, etc.) continue to contribute to the growth of income. At the same time, the ischemia products (including Fastunnel delivery balloon dilatation catheter, etc.) which were put on the market in May 22 began to be commercialized, and we believe that with the improvement of safety and efficiency of the products, we will continue to increase the volume.

Profit forecast and investment advice. It is estimated that the overall operating income in 23-25 years is 447 million yuan, 666 million yuan and 941 million yuan respectively, and the corresponding EPS is-0.70 yuan per share,-0.19 yuan per share and 0.01yuan per share. Taking into account the company's industry status and business growth, the company is given a 23-year PS17X, corresponding to a fair value of HK $12.72 per share, with a "buy" rating.

Risk tips: the product under research is expensive, the product sales are not as expected, and the operator's acceptance is not high.