Recently, the company announced that the holding subsidiary Implanet spinal fixation system JAZZ SpinalSystem has obtained US FDA 510 (K) certification, extending overseas product lines and enhancing the company's international influence and competitiveness, which is expected to further expand the overseas layout and maintain the purchase rating.
Key points to support ratings
The new products have been certified by the FDA, further improving international competitiveness. The JAZZ Spinal System is used for non-cervical posterior fixation and assisted fusion in mature skeletal patients. It uses the company's complete Zeus spinal system file, which can solve a range of indications from spinal fractures, degeneration, deformities, pediatric surgeries, etc. The application areas cover various diseases such as spinal fusion, slippage, fractures, complex spinal orthopedic correction, etc., as well as the thoracolumbar posterior thoracolumbar system with open and minimally invasive surgical modes. The company fully owns the invention patent for this system, and can directly compete with international peers in high-end orthopedic markets such as Europe and the US, and has achieved important milestones in the company's technology export route.
Overseas subsidiaries broaden the international market and complement the international product line. The company has independent R&D capabilities and a complete quality system. Implanet enables the company to face mainstream international markets and end customers in the international high-end orthopedic market. In 2024Q1, the company completed the establishment of an American sales team composed of local American people. It has rich resources of doctors and distributors in the US to further promote the promotion and implementation of the company's spine product line in the US market. It is expected to stand out in the international high-end orthopedic market, export self-developed innovative therapeutic technology and products to overseas markets, continuously broaden the overseas layout, further enrich the international product line, and enhance the company's international competitiveness and comprehensive strength.
The innovative growth point is gradually entering the cashout stage, compounding the influence of collection, and I am optimistic about the company's long-term development. In addition to strengthening R&D and innovation in the field of traditional orthopedic implant consumables, the company actively broadens its product line, always maintains innovative vitality and motivation, lays out active surgical equipment such as ultrasonic bone cutters and ultrasonic hemostatic knives, and obtains domestic general agency rights for artificial bone, etc., and is also actively expanding the field of sports medicine to further expand the company's product line layout.
In addition, the orthopedic industry has already been collected, and the company has rare therapeutic innovation capabilities in the field of spine. It is expected that it will fully enjoy the acceleration of the industry brought about by volume compensation, and long-term development can be expected.
valuations
The company's net profit for 2024-2026 is expected to be 0.161 billion yuan, 0.21 billion yuan, and 0.271 billion yuan, respectively, and the corresponding EPS is 0.65 yuan, 0.84 yuan, and 1.09 yuan, respectively. The PE corresponding to the current stock price is 28.5 times, 21.9 times, and 16.9 times, maintaining the purchase rating.
The main risks faced by ratings
Risk of policy changes, risk of downstream channel expansion falling short of expectations, risk of product sales in international markets falling short of expectations, risk of exchange rate fluctuations.