Introduction to this report:

The company's electrophysiology business was promoted smoothly, and the vascular intervention business grew strongly. The non-vascular intervention business provided new growth points. The performance was in line with expectations, and the increase rating was maintained.

Key points of investment:

Maintain an increase in holdings rating. The 2024-2025 EPS forecast was raised to 10.38/14.19 yuan (originally 10.00/13.95 yuan), and the 2026 forecast was added to 18.78 yuan. Refer to the comparable company that gave the 2024 target PE 48X, and the target price was raised to 498.24 yuan (originally 424.67 yuan), maintaining the increase rating.

The performance was in line with expectations. For the full year of 2023, the company achieved revenue of 1,650 million yuan (+35.7% YoY), net profit of 534 million yuan (+49.1%), net profit of 468 million yuan (+45.5%); 2023Q4 achieved revenue of 437 million yuan (+32.8%) in a single quarter, net profit of 131 million yuan (+34.1%), after deducting non-net profit of 108 million yuan (+21.8%). The performance was in line with expectations.

The electrophysiology business is being promoted smoothly, and the layout of atrial fibrillation is about to be improved. With the help of collection, the core products of electrophysiology were successfully promoted. In 2023, more than 300 new hospitals were implanted, covering more than 1,100, and more than 10,000 3D surgeries were completed in over 800 hospitals throughout the year (a year-on-year increase of more than 200%). The increase in sales made up for the decline in prices, and electrophysiology achieved annual revenue of 368 million yuan (+25.5%). Clinical research on the 3D PFA and radiofrequency packages in the field of atrial fibrillation treatment is also progressing steadily. After listing in the future, it is expected to further fill the company's shortcomings in the field of atrial fibrillation treatment and fully enter the wider atrial fibrillation market.

The vascular intervention business is growing strongly, and the non-vascular intervention business provides new growth points. The vascular intervention business is still the main engine of the company's growth at this stage. With high-quality product performance and perfect product portfolio, both peripheral and coronary admissions continued to grow. In 2023, the coronary access category achieved revenue of 791 million yuan (+39.0%), and the peripheral intervention category achieved revenue of 256 million yuan (+40.4%), and the growth trend is expected to be maintained.

Companies in the field of non-vascular intervention have also initially formed an overall solution for urolithiasis, with some digestive and gynecological products, and achieved revenue of 16 million yuan in 2023, which is expected to provide new growth points.

Risk warning: Product development falls short of expectations, external environmental impact