Institution: GF Securities
Rating: Buy
Core views:
Coronary stents have been produced in China, and new products and overseas markets are worth looking forward to.The results of the national coronary stent collection were announced on November 5. Previously, Minimalist had obtained more than 7 billion yuan through parent company placement and subsidiary financing, and had plenty of cash to support the future development of various businesses. The company's future growth will be driven more by the development of businesses such as heart valves, surgical robots, neurological intervention, and heart rhythm management. The company's superior products have been successfully certified overseas, and the global layout has accelerated. After the implementation of the support for national mining, the company's policy risks were clarified, and the diversified and global layout enabled the company to have high long-term growth potential.
Minimally Invasive Heart Care was listed on the Hong Kong Stock Exchange and has a comprehensive and leading layout in the field of valves.On November 6, the subsidiary Minimally Invasive Heart Connect submitted a listing application to the Hong Kong Stock Exchange. Focusing on the field of heart valve diseases, Xintong began developing first-generation TAVR products in 2010, which were approved for listing in July 2019, and second-generation products submitted marketing applications in October 2020. At the same time, Xintong is also developing third-generation TAVR products, and through independent R&D and cooperative introduction, it has established a R&D pipeline with 5 TMV (mitral valve repair/replacement) products, 2 TTV (tricuspid valve repair/replacement) products, surgical valve products, and a series of surgical support products. Comprehensive layout, leading R&D progress.
The robot subsidiary plans to be spun off and listed, and will soon enter the commercial harvest period.On December 11, the company announced that it is considering a possible spin-off of the robotics subsidiary and listing. After years of R&D, innovation and industrial accumulation, minimally invasive robots have mastered the underlying technology of the entire chain of surgical robots, and have multidisciplinary integration and platform-based expansion capabilities. The business covers the five major fields of endoscopy, orthopedics, vascular intervention, natural cavity, and percutaneous puncture. The company has already entered the green channel with three products, and 3D electronic laparoscopy, endoscopic surgery robots, and joint replacement surgery robots will enter the commercial harvest period one after another.
Profit forecasting and investment advice: The reasonable value of the company was obtained using the DCF valuation method of HK$47.85 per share. The company leads import substitution in many high-end equipment segments in China, insists on investment in R&D, and continuous product upgrades. In the future, innovation will drive continuous growth. High growth in domestic business and gradual expansion of overseas sales scale can be expected, maintaining a “buy” rating.
Risk warning:Product sales fall short of expectations; R&D progress falls short of expectations; industry policy risks.
(*Unless otherwise specified, the currency unit for this report is USD)
