Kendley: The company has been deeply involved in the injection puncture industry for more than 30 years and has gradually grown into a leader in the domestic industry. The upstream and downstream layout of the industrial chain is perfect, and the advantages of scale and industrial chain integration are outstanding. The traditional injection and puncture business is expected to closely follow the pace of volume collection and achieve a breakthrough in market share. Furthermore, the company actively lays out injectable products with consumer attributes, such as insulin injections and cosmetic needles, which have high technical barriers, to expand its business line while boosting overall profitability.

Injectable puncture devices: The company's products such as infusions and indwelling needles have won bids in many provinces and cities across the country. For other types of collection that may continue in the future, the company has a complete brand matrix and various response plans. With cost advantages and channel layout advantages, it may gradually enter a broad blank market, achieving a steady increase in market share.

Insulin injections: The number of diabetics in China is huge, but the penetration rate of insulin treatment is still low. As health awareness increases, the national insulin penetration rate is expected to increase rapidly, which in turn will drive the demand for insulin pens to expand. The disposable insulin injections produced by the company have high safety and high cost performance points, and will also benefit from the expansion of market space and the trend of domestic substitution. The company's disposable injection pen needles are also suitable for the injection of GLP-1 drugs, and can be used in conjunction with pre-filled semaglutide injection pens and other pre-filled injection pens. Driven by the strong demand downstream market, it is expected to gain some room for growth.

Cosmetic acupuncture: The disposable injection kit produced by the company is the first three-class product approved by the NMPA in China containing blunt needles for cosmetic injections. Compared with traditional sharp cosmetic needles, cosmetic blunt needles have higher safety and a wider range of injections, and can effectively reduce risk during surgery and swelling after surgery. Benefiting from the rapid increase in the volume of light medical and aesthetic surgery, the demand for medical and aesthetic injections is impressive, but the current compliance level of this type of product is low. As the trend of medical and aesthetic device compliance becomes stricter, the company's cosmetic acupuncture qualification advantages may become apparent, and it can gradually replace non-compliant products.

Investment suggestions: The company is a leader in the domestic puncture infusion industry. The technical advantages and scale advantages established over a long period of time are outstanding. The traditional puncture injection business is expected to achieve steady development under volume collection. Consumer products such as insulin pens and cosmetic needles have safety and cost performance advantages. Driven by downstream demand, they will achieve a rapid increase in market share. The company's revenue for 2023-2025 is estimated to be 2,872 million yuan/3.3 billion yuan/3.852 billion yuan, respectively, and net profit of 286 million yuan/355 million yuan/439 million yuan respectively, corresponding to PE 16 times/13 times/10 times, respectively. First coverage, giving a “buy” rating.

Risk warning: competition in the industry intensifies; collection performance falls short of expectations; promotion of insulin pens and cosmetic needles falls short of expectations; performance forecasts and valuation judgments fall short of expectations.