The endoscopic diagnosis and treatment equipment industry is in high demand and has broad room for development. According to Evaluate MedTech statistics, demand in the global medical device market remains strong. The global medical device sales volume in 2017 was 405 billion US dollars, and it is expected to reach 594.5 billion US dollars in 2024. Global endoscope sales were $18.5 billion in 2017 and are expected to reach $28.3 billion by 2024. Minimally invasive treatment under digestive endoscopy is playing an increasingly important role in early screening of digestive diseases. There are many types of diagnosis and treatment methods and instruments.
The company is deeply involved in the field of digestive tract, and its performance is growing rapidly. The company's revenue has shown an upward trend in recent years, rising from 90 million yuan in 2017 to 371 million yuan in 2022; net profit to mother increased year by year, reaching 145 million yuan in 2022. The company has five major products: hemostasis closure, EMR/ESD, biopsy, ERCP, and diagnostic and treatment instruments. Revenue from various products is increasing year by year. Domestic and foreign revenue increased steadily. In 2022, mainland China's revenue was 190 million yuan, foreign revenue was 179 million yuan, and exports accounted for nearly 50%.
The company attaches importance to product development and innovation, and has a rich product range. The company created and perfected the “Three Trees” technical concept centered on clinical academic research, patent analysis research, and scientific and technological achievements research, and gradually formed a research and development system “guided by clinical needs, product innovation and process optimization as the path, and supported by industry information”. The company has formed a rich product line. Currently, the products cover five categories, involving 24 series and more than 300 specifications and models. The company's unique bipolar circuit technology has pioneered a new stage in EMR/ESD early cancer treatment, which is expected to drive the release of EMR/ESD products.
Investment advice: The incidence of gastrointestinal diseases in China is high, but the penetration rate of minimally invasive diagnosis and treatment under digestive endoscopy is low. The company is a device company deeply involved in the digestive tract field and has a wide range of products. We expect the company to achieve operating income of 5.09/6.45/842 million yuan in 2023-2025, an increase of 37.1%/26.7%/30.6%; net profit to the mother is 2.17/2.77/ 363 million yuan, an increase of 49.8%/27.7%/30.8%; overseas orders are abundant, and domestic sales of products are expected to continue to increase. Covered for the first time, a “gain” rating was given.
Risk warning: technology development risk; property rights protection and technology disclosure risk; risk of loss of core technical personnel; product quality risk; product registration risk; customer management risk, etc.