Main points of investment
The performance maintained high growth in 2019, and the product structure was further optimized: the company achieved an operating income of 286 million yuan in 2019 (the same below), an increase of 41.1% over the same period last year, and a net profit of 100 million yuan, an increase of 70.4% over the same period last year. Cardiovascular interventional devices are the company's main source of income, with sales reaching 257 million yuan in 2019, an increase of 46.0% over the same period last year.
Intracardiac interventional devices are leading in China, and there is still a lot of room for import substitution: in recent years, the number of PCI surgery cases in China has been increasing, which has led to the expansion of the market scale of cardiovascular interventional devices, but there is still more room for improvement compared with developed countries such as Europe, the United States and Japan. At present, the domestic intervention equipment market is still in the situation of import monopoly, and the domestic production rate is only 10-15%. With (1) the upgrading of domestic interventional devices (2) the improvement of the recognition of domestic brands by doctors and patients (3) the domestic products with high quality and low price under the medical insurance control fee are more favored, and the domestic production rate of interventional devices is expected to increase. Gradually achieve import substitution. The company has a comprehensive product line of cardiovascular interventional devices, basically covering major product categories, and has a full range of core manufacturing capabilities ranging from product design, mold design and manufacturing to product manufacturing and sterilization. Compared with competitors, it has more cost advantage and competitiveness. In addition, the company's sales channel coverage capacity continues to increase. With its comprehensive advantages in many aspects, the company's leading position in the field of cardiovascular interventional devices continues to expand.
Internal research and external incubation to create rich pipelines, short -, medium-and long-term new products listed one after another: the company is expected to make breakthroughs in the research products in the short term are nerve interventional instruments (nerve microguide wires and nerve microcatheters, etc.) and peripheral interventional instruments (degradable sinus stents, etc.). Thrombectomy / thrombectomy can significantly prolong the treatment window period of acute ischemic stroke and has a broad market prospect. In the medium and long term, successful research and development of TAVR products is expected to help the company enter the field of intracardiac implant devices. In addition, the company speeds up the construction of the incubation platform to achieve steady development under the premise of controlling risks.
Our point of view: recent events have led to the stagnation of hospital outpatient surgery, and the demand for short-term cardiovascular intervention devices has been affected to a certain extent. With the gradual control of the domestic epidemic, the sales of the company's products have also recovered, and the impact is expected to be controllable. On the other hand, 32.77% of the company's 2019 revenue comes from overseas, and this part of the business will also be affected by the global spread of the epidemic in the short term and will gradually return to normal after the epidemic is under control.
On the whole, the company has achieved a domestic leading position in the field of cardiovascular interventional devices and is expected to benefit from the process of domestic substitution. At the same time, the listing of nerve intervention and peripheral intervention products and intracardiac implant devices will bring performance increment for the company and become a short-term and medium-to long-term performance growth point.
Risk tips: higher-than-expected impact of the global epidemic, economic downside risks, lower-than-expected progress of new product research and development, policy risks.