Deeply cultivate the electrophysiology circuit and lay out all aspects of the product. Microelectrophysiology was founded in 2010. Based on the power of Minimally Invasive Group, the company has a deep layout around the electrophysiology circuit. Currently, it has formed a complete layout of equipment+standard catheter+ablation catheter. The ablation technology covers mainstream radiofrequency and freezing methods, and strategically lays out pulse ablation. Many of the company's products have been approved through innovative device channels, or are the first in China, leading domestic atrial fibrillation treatment solutions to the world through technological innovation.

Iteration of ablation technology has led the growth of the industry, and the implementation of collection has accelerated import substitution. Electrophysiological surgery involves measurement diagnosis and ablation treatment. With the continuous development of technology, 3D labeling gradually replaced 2D as the mainstream. Techniques such as radiofrequency, freezing, and pulse ablation continued to be iterated, and electrophysiological surgery was continuously optimized. According to Frost & Sullivan data, the domestic electrophysiological device market was 6.58 billion yuan in 2021, and the compound growth rate of the industry was 24.34% in 2021-2025, and is expected to reach 15.73 billion yuan in 2025. In 2020, more than 85% of domestic electrophysiological devices are imported brands, and the proportion of domestic products is still low. In 2022, Fujian Province led the collection of the 27 Provincial Electrophysiology Alliance, with an average drop of 49.35% for selected products. Microelectrophysiology won a total of 18 bid results in single item procurement and supporting procurement, ranking first in the country. The collection is expected to drive leading domestic brands to accelerate import substitution.

The volume of three-dimensional surgeries continues to break through, and the strategic layout potential of the market is promising. In 2015, the first-generation microelectrophysiology product Columbus 3D electrophysiological labeling was approved through the innovative device channel. After nearly 10 years of development, the labeling system was developed to the fourth generation. The richness and performance of the electrophysiology series products were comparable to international imported brands. By 2024H1, the company's global 3D surgery volume had exceeded 0.07 million cases, ranking first in domestic production, and the continuous accumulation of clinical data laid the foundation for rapid product iteration. The company's research projects include pressure pulse ablation catheters and renal artery radiofrequency ablation systems to strategically position potential markets.

Profit forecast and rating: We expect the company's total revenue for 2024-2026 to be 0.438/0.58/0.787 billion yuan, respectively, with growth rates of 33.00%/32.45%/35.63%, respectively; net profit to mother for 2024-2026 is 0.037/0.064/0.111 billion yuan, respectively, with growth rates of 547.65%/73.08%/74.68%, respectively. The PS corresponding to the current stock price is 25x, 18x, and 14x, respectively. Huitai Medical and Bairen Medical, which are also high-value consumables manufacturers, were selected as comparable companies. Based on the company's continuous enrichment of ablation technology and a steady increase in 3D surgery volume, coverage for the first time, they were given a “buy” rating.

Risk warning. Domestic policy risks, increased competition risks, new product promotion falling short of expectations