A pioneer in the Shenwai field, with a strong growth trend. Established in 2008, Maipu Medical is the only company in the field of neurosurgery in China that also has implantable medical devices such as artificial brain (spine) membrane patches, craniomaxillofacial repair products, and absorbable hemostatic yarn, covering the key implantable medical devices required for craniotomy surgery.
The company's revenue continued to grow in 2018-2023, with a 4-year CAGR of 19.5%. Under the influence of multiple factors such as the external environment, volume procurement, and health insurance payment system reform, the CAGR of net profit not attributable to mother was more than 34% in 2019-2023.
Following the development trend of the industry, we are committed to becoming a platform-based medical device company. Combined with the technical accumulation of synthetic materials research, the company has gradually established diversified core technology platforms including bioadditive manufacturing, digital design and precision processing, selective oxidation and microfiber mesh molding, multi-component crosslinking, and atomization into adhesives through continuous independent research and development. Relying on these technical platforms, the company actively enriches its product layout and is superior to domestic comparable companies in terms of neurosurgical product line layout.
The impact of pulsed harvesting in 2021-2023 was limited, and the company's artificial hard brain (ridge) membrane revenue growth was relatively stable. The company actively participated in the collection of artificial hard brain (spine) membrane products. From 2021 to January 2024, the company's related products were selected for collection in Shaanxi, Liaoning, Anhui, Hebei, Fujian, Jiangsu and Shandong. We believe that the price and volume of collection have caused slight fluctuations in the company's artificial hard brain (ridge) membrane revenue and gross margin, but overall, since 2021, the trend has remained stable, and the impact of collection is limited.
In 2023, the company's revenue for craniomaxillofacial repair and fixation products exceeded 60 million, making volume procurement a new revenue growth point. In 2018-2023, sales of the company's PEEK craniomaxillofacial repair systems grew rapidly, with a revenue CAGR of 63.6%. In November 2023, according to the “Notice Concerning Interprovincial Alliance Procurement of General Interventional and Neurosurgical Medical Consumables” issued by the Interprovincial Alliance Procurement Office of the Henan Provincial Medical Security Administration, the company's skull repair and fixation products were shortlisted. We believe that successful collection and selection is expected to drive down the terminal price of PEEK products, accelerate the replacement of titanium materials and create greater demand, and drive sales growth for the company's products.
Profit forecast. We expect the company's net profit to be 55.02, 86.68, and 121.41 million yuan respectively in 2024-2026, and EPS of 0.83, 1.31, and 1.84 yuan/share, respectively. Based on the fact that the company is a first-tier domestic neurosurgery company, we will give the company 47-57 times PE in 2024, with a corresponding reasonable value range of 39.14-47.47 yuan/share, giving a “superior to the market” rating.
Risk warning. R&D progress risks, procurement price reduction risks, market competition risks, policy risks, etc.