Benefiting from the domestic alternative policy, the company has expanded its advantage in the fast-growing interventional device market to basically cover the major medical devices needed for cardiovascular interventional surgery (especially PCI surgery). Thanks to the rapid expansion of China's coronary artery surgery market driven by the increase in the number of PCI operations, the number of PCI operations is expected to reach 1.76 million in 23 years, nearly double that of 900000 operations in 18 years. The market for coronary intervention is expected to reach 9.6 billion yuan in 23 years, with a compound annual growth rate of 13.05% from 18 to 23. At present, China's interventional devices are mainly international brands, and the domestic production rate is only 10%, 15%. Under the policy of medical insurance control fee, priority purchase of domestic brands and no value-added tax, the company ranks first among the domestic brands in China's PCI support device market in the past 18 years, accounting for 3.1% of the market share, and the second among the domestic brands in China's coronary intervention market, with a market share of 1.8%. From 16 to 19, operating income achieved a compound annual growth rate of 39.09%, and profits achieved a compound annual growth rate of 41.6%. In the future, it is expected to maintain competitiveness by virtue of brand recognition and cost advantages, and further seize market share.
Sufficient R & D reserves and strong channel coverage to ensure stable income growth the market scale of nerve microguide wire and microcatheter products distributed by the company in the field of neural intervention expands with the increase in the incidence of acute ischemic stroke and the demand for mechanical thrombectomy surgery. the market size is expected to reach 529 million yuan and 579 million yuan respectively in 28 years, a 10-fold increase over the average of 18 years. This product is expected to bring revenue to the company next year. At present, the amount of ERCP surgery in China is only 10% of the actual demand, and the penetration rate of digestive endoscope in 18 years is only 4%. Compared with developed countries, there is still much room for development. It is estimated that the number of ERCP operations in 23 years will reach 43.82 million, an increase of 68% over 18 years. The biodegradable ballistic stent being developed by the company is expected to be approved in 22 years, and the market scale of its products is expected to achieve a compound annual growth rate of 89.46% in 22-28 years. The company is researching products to take stone net basket, bile duct stone balloon catheter is expected to bring 10-20 million yuan of revenue growth to the company next year. The company has made a great breakthrough in the field of peripheral intervention in the field of biodegradable sinus stents, and the medium-and long-term layout of TAVR products will help the company to enter the field of intracardiac implant devices. The company's sales network covers China and major regions of the world, has 360 distributors and continues to expand.
Cover the buy rating for the first time, with a target price of HK $65.70
As a leading manufacturer of intracardiac interventional devices, the company is actively expanding new areas of treatment, is rich in research products, and can maintain rapid growth in the future. We forecast that the income from 2020 to 2022 will be 3.62,4.91 and 660 million yuan respectively, up 26.22%, 35.75% and 34.53% respectively over the same period last year; and the EPS from 2020 to 2022 will be 0.73,1.02 and 1.41 yuan respectively. The target price is HK $65.70, corresponding to 58.84 times PE in 2021, a 20 per cent increase from the current price, covering a "buy" rating for the first time.
