The Zhitong Finance App learned that CICC released a research report stating that it initially gave Jianshi Technology-B (09877) a “outperform the industry” rating, with a target price of HK$45. The company is one of the leading domestic enterprises in the field of structural heart disease. The market has yet to fully recognize the commercialization opportunities of tricuspid valve replacement. The bank is more optimistic about the long-term growth of this field and the company's comprehensive and differentiated product pipeline.
The main views of CICC are as follows:
The population of structural heart disease patients is huge, and the penetration rate of interventional treatment is expected to continue to increase.
According to Frost & Sullivan data, the number of patients with moderate to severe valvular heart disease worldwide and China reached 150 million/25 million respectively in 2021, and there were 3090/11.6 million patients with heart failure. Minimally invasive transcatheter intervention is more effective than medication and safer than surgical thoracotomy. As technology upgrades, doctor training, and patient education gradually accumulate, the bank expects the penetration rate of catheter intervention treatment to continue to increase globally. Sullivan expects the global/Chinese structural heart disease interventional device market to reach 1317.4 billion yuan in 2025, respectively.
Jianshi Technology is the world leader in tricuspid valve intervention.
Lux-Valve, a transductal tricuspid valve replacement (TTVR) product independently developed by the company, has a unique ventricular spacing anchoring method. It has shown excellent efficacy and safety in viable clinical trials, and has completed follow-up with all patients in confirmed clinical trials. The company expects 4Q23 to be approved for listing in China. As far as current clinical progress is concerned, the bank expects Lux-Valve to be the first two approved commercialized TTVR products in the world. Second-generation transvascular products have also entered the phase of confirmatory clinical trials. The bank expects Jianshi Technology to lead the innovation of the tricuspid reflux treatment paradigm, and the company's revenue is expected to increase rapidly starting in 2024.
Platform-based R&D capabilities, 12 products covering the main areas of structural core.
The company is guided by unmet clinical needs and adheres to a differentiated layout and independent innovation. There are 12 products in various fields such as tricuspid valve reflux, mitral valve reflux/stenosis, heart failure, and cardiogenic stroke prevention. The company has platform-based R&D capabilities. Core technologies include anchoring method design, anti-calcification treatment, polymeric valve design, scaffold design, etc., and can continuously produce high-quality candidate products.