The company's recent situation
The company announced that it will participate in investing in innovative medical device company Valgen Holding Corporation (Valgen Holding Corporation) to improve its strategic layout in the field of structural heart disease treatment.
reviews
A member of the Denotel system, focusing on research and development of treatment technology for mitral valve disease. Dejin Medical was founded in 2015 by Deno Medical Group. It focuses on research and development of treatment technology related to mitral and tricuspid valves, especially providing systematic solutions for diseases such as mitral valve reflux and tricuspid valve reflux. According to the company and Dejin Medical's official accounts, Dejin Medical has now developed products such as MitralStitch, China's first device for treating mitral valve reflux through myocardial intervention, Dragonfly-MTM, the first transfemoral mitral valve repair device in China, and Dragonfly-TTM, China's first transfemoral tricuspid valve repair device; among them, MitralStitch and Dragonfly-MTM have entered the pre-marketing registration clinical research stage, and Dragonfly-TTM has entered the exploratory clinical research stage , product development is at the forefront of the industry.
Invest in Dejin Healthcare to strengthen its leading position in the field of structural heart disease. According to Frost & Sullivan data, the number of patients with mitral valve reflux in China in 2020 exceeded 10 million, more than three times the number of patients with aortic valve disease (stenosis and reflux). Considering that transcatheter mitral valve treatment is still in its early stages, we think the market potential may be greater than that of aortic valves.
According to the announcement, the company's current investment in Dejin Medical will have a positive impact on its product strategy layout in the field of structural heart disease. According to the company's official account, the number of 1Q21 terminals implanted is about 750, and we expect subsequent commercialization capabilities to continue to be realized, leading the industry. At the same time, we believe that the company's investment in Dejin Medical may have a positive catalytic and synergistic effect on the future development of both parties, and it is expected that the company's leading position in the field of structural heart disease treatment will be consolidated through the company's strong commercialization capabilities.
The international strategy continues to advance, leading the innovative medical device circuit. According to the company announcement, the company's independently innovated transcatheter artificial pulmonary valve system VenuSP-VALVE is currently in the final stage of CE certification by the European Drug Administration. The company is expected to be approved and marketed within 2021. In addition, the company has also deployed a variety of products and technologies in the field of structural heart disease to strengthen clinical competitiveness by continuously enriching its product portfolio in the field of heart valves. We anticipate that with a rich and complete pipeline of innovative products, Qiming Medical is expected to continue to seize market share in the field of heart valve therapy after gaining a first-mover advantage in the market, and continue to accumulate and develop into an industry leader in the field of innovative medical devices through deep cultivation in the field of innovative medical devices. We recommend following the company's clinical and commercialization developments in 2021.
Valuation recommendations
For the time being, we will keep our 2021/2022 revenue forecast of 692/1,168 million yuan unchanged, the 2021 net loss forecast of 49 million yuan and the 2022 return to mother net profit forecast of 175 million yuan unchanged. We maintain the company's target price of HK$85 (based on DCF valuation), with room for 25% increase from the latest closing price. Maintain the “outperform the industry” rating.
risks
Clinical research and development progress fell short of expectations; terminal surgery volume was slow; industry policy risks.