Investment bank Citibank recently gave Jianshi Technology (09877) a “buy” rating, with a target price of HK$40.00.
The Zhitong Finance App learned that investment bank Citibank recently gave Jianshi Technology (09877) a “buy” rating, with a target price of HK$40.00, based on the following four reasons: (1) It is expected that Jianshi Technology's LUX-Valve products will be approved by China's National Drug Administration (NMPA) in the fourth quarter of 2023, becoming the first approved product in China; (2) the two core products (LUX-valve, Ken-Valve) seize global TTVR and TAVR (AR) market opportunities with rapid growth and insufficient penetration; (3) target structure The complete product portfolio layout in the cardiac field covers tricuspid valve, aortic valve, mitral valve, heart failure, and cardiogenic stroke; (4) Currently, the company's stock price is in an undervalued range compared to the IPO price of HK$27.8.
LUX-Valve may become the first product approved for commercialization in the Chinese transcatheter tricuspid valve replacement (TTVR) market. Meanwhile, LUX-Valve Plus, a second-generation transcatheter tricuspid valve replacement product, is undergoing registered clinical trials in the EU and conducting an early feasibility study (EFS) in the US. LUX-Valve Plus is expected to be listed in China in '24, the European Union in '25, and the US in '26.
Jianshi Technology's two core products, LUX-Valve and KEN-Valve, target the TTVR and TavR (AR) markets, respectively, to seize the strong growth opportunities in these two markets, which are huge and have not yet been fully developed. According to Frost & Sullivan's forecast, in 2021, there were about 9.3 million patients with moderate to severe tricuspid valve reflux (TR) in China, which is expected to increase to 10.6 million by 2030, with a compound annual growth rate (CAGR) of 1.5%. China's tricuspid valve intervention (TTVI) market is expected to reach 85.6 million yuan in 2023 and increase to 20.3 billion yuan by 2030, with a compound annual growth rate (CAGR) of 118%. Jianshi Technology is developing 12 product pipelines. A complete structured product layout can achieve diversified revenue sources and bring about integrated synergies in R&D, production and commercialization.