The Zhitong Finance App learned that Guoyuan International released a research report saying that Kang Feng Biotech (06922) is a leader in the field of refrigeration intervention and is about to experience rapid growth with the launch of new products. The estimated revenue for 2023-25 is RMB 41 million, 181 million yuan, and 358 million yuan, respectively, and net profit is RMB -108 million, -0.64 billion yuan, and -015 million yuan respectively. According to the DCF model, the target price is HK$28.00, giving a purchase rating, an increase of 48.9% from the current price.

▍ Guoyuan International's main views are as follows:

The cryointerventional industry is growing rapidly

The company is a leader in the field of cryointervention. Currently, commercial products are bladder cancer cryoablation systems. The pipeline includes vascular cryointerventional systems and natural cavity cryointervention systems, which are used to treat atrial fibrillation and high blood pressure; chronic obstructive pulmonary disease, asthma, airway stenosis, bladder cancer, gastric cancer, and esophageal cancer, respectively. The cryointerventional industry has entered a period of rapid growth. The number of cryoablation surgeries in China increased from 0.98 million in 2020 to 224,900 in 2030. The CAGR is 36.9%, which is much higher than 21.1% of radiofrequency ablation.

Cryointerventional treatment has outstanding curative effects, and the company's products are at the forefront of innovation

Through exchanges with well-known experts presiding over clinical trials of cryointerventional systems such as Zhongshan Hospital, Huashan Hospital, and Shanghai Tenth Hospital, cryointerventional treatment has obvious advantages, is easy to operate, and has few side effects; interventional respiratory cryotherapy systems have remarkable curative effects on clinically difficult diseases such as chronic obstructive pulmonary disease, asthma, and benign and malignant stenosis. The treatment of tumors such as bladder cancer includes both local physical therapy and systemic immunity, and the application prospects are extremely broad; currently, cryotherapy is in the early stages of development and is about to enter a period of rapid growth, and the company is a leader in the industry.

The market space for interventional treatment is large, and there is plenty of room for cryointerventional treatment. The cryotherapy atrial fibrillation system was approved for sale in December 23, and is expected to be rolled out quickly and drive the company's performance growth. The cryotherapy hypertension system is expected to be approved for sale in the second half of '25, and there is plenty of room for treating high blood pressure.

The company has a reasonable hierarchy of cryointerventional products, and innovative devices will be launched every year

The cryotherapy atrial fibrillation system has been approved and is expected to be released rapidly, driving the company's performance growth. The cryotherapy high blood pressure system is expected to be approved for sale in the second half of '25, and there is plenty of room for treating high blood pressure.

In terms of the respiratory system, the cryoablation system for malignant respiratory stenosis is expected to be approved for marketing in Q4 '24, the cryoadhesion treatment system will be approved for marketing in Q1 '24, and the cryoablation system for COPD and asthma is expected to be approved in the second half of '26. In terms of interventional cryotherapy systems, the cryoablation system for bladder cancer was marketed and successfully commercialized in '22, and cryoablation systems for gastric cancer and esophageal cancer are also being actively deployed.