Xianjian Technology is one of the leading companies in minimally invasive interventional medical devices for cardiovascular and peripheral vascular diseases in China. It has world-leading products such as left ventricular ear occluders, etc., and also has good product acceptance in overseas markets. The company attaches great importance to R&D, has strong technical strength, and many products are at the leading international level. The company's business grew rapidly in the first half of 2021, and is expected to maintain its growth momentum throughout the year.
Performance increased significantly in the first half of the year, and full-year growth can be expected: The company announced earnings on July 21. It is expected that net profit for the first half of 2021 will not be less than 200 million yuan, up 100-110% year on year over 2020, and 110-120% year on year over 2019. Most of this increase came from an increase in sales revenue and gross profit from the main business, and the increase in investment income only contributed about 20% of the profit increase. The company's non-net profit deducted declined in the second half of 2020 due to the pandemic, but quickly rebounded in the first half of 2021. Benefiting from the rapid growth of the industry and the rise in demand after the pandemic, the company's annual performance is expected to continue to grow.
Overseas listing of iron-based stents: The IBS Angel iron-based absorbable stent system independently developed by the company was registered and approved in Malaysia on June 6, making it the only absorbable stent product suitable for children in the world. Furthermore, the product is also undergoing CE and domestic registration, and is expected to become the first iron-based absorbable scaffold marketed in the EU and China. The registration of this product marks that the company's iron-based stent products have finally entered the commercial stage after years of research and development, and has also laid a certain foundation for the marketing of other absorbable scaffolds.
The future of the electrophysiology business is promising: the company is the first manufacturer in China with a complete product portfolio of implantable pacemakers with international technology and functions. The increase in implants in 2020 fell short of expectations due to the pandemic, but currently the tendering and admission of this product are progressing smoothly, and it is expected that it will be released rapidly in the next three years. The company has a first-mover advantage in this field, and the market potential for domestic pacemakers to be imported and replaced is huge. This product is expected to become an important profit growth point for the company in the next few years.
Investment suggestions: The company is in the rapidly developing medical device industry. It has strong technical strength and has a lot of room for long-term profit growth. Investors are advised to buy at bargain prices.