Event: On August 30, 2021, the company released its semi-annual report results: in the first half of 2021, the company achieved operating income of 461.1 million yuan, up 68.9% year on year; gross profit of 374.4 million yuan, up 72.5% year on year; net profit to parent was 204.4 million yuan, up 106.6% year on year.
Comments:
Significant increase in performance in the first half of 2021
In the first half of 2021, the company's revenue was 461.1 million yuan, an increase of 68.9% over the previous year. Its business in China recovered rapidly, with revenue of 387.4 million yuan, an increase of 74.6% over the previous year. Looking at business segments: The structural heart disease business grew strongly. The company's revenue in 2021 was 159.1 million yuan, up 100.6% year on year. Among them, sales of the third-generation congenital heart disease blocker products HeartR, CERA, and Ceraflex increased by about 47.3%, 160.0%, and 13.3%, respectively. The Lambre left atrial occlusion system increased 147.5% year-on-year. The peripheral vascular business continues to lead the market share. The company's revenue in 2021 was 286.8 million yuan, up 50.0% year on year. Among them, sales of aortic laminating stents increased by about 60.8% year on year, and sales revenue of venous venous filters increased by about 24.7% over the same period last year. The pacemaker business accelerated import substitution. The company's revenue in 2021 was 15.2 million yuan, an increase of 508.0% over the previous year. The company's core product, the HeartTone series implantable pacemaker, has cooperated with top international technology, and is expected to continue to grow at a high level in the future.
The research pipeline is rich, and products have been approved one after another
The company focuses on R&D innovation. In the first half of 2021, the company invested 91.7 million yuan in R&D (including capitalization), an increase of 25.3% over the previous year. In the first half of the year, the company submitted 54 patent applications, 66 were approved, and a total of 1,350 patent applications were submitted, of which 496 were approved. 6 new products were approved for listing: 4 innovative products were approved for listing in China, including the G-iliac iliac artery bifurcation stent and the SilverFlow iliac internal laminating stent system product portfolio, making it the first medical device for intracavitary iliac artery reconstruction in China.
The LaNavi segmented bending guidance system is the world's first segmented curve control guidance system for left atrial occlusion. The aortic intraoperative laminating stent system was approved for marketing in the European Union. It is the world's first multi-branch intraoperative laminating stent system. The IBS Angel iron-based absorbable stent system has been approved for sale in Malaysia, making it the world's first absorbable stent for children. 1 new product was added to the national medical device green approval channel: The company's aortic laminating stent system (chimney type) is the world's first laminated stent developed for “chimney technology”. It was approved to enter the national “Innovative Medical Device Special Examination Procedure” in the first half of the year. A total of 13 products from the company entered the “green channel” for special approval of this innovative medical device. Clinical breakthroughs have been made in several products: the IBS Angel iron-based absorbable stent system has initiated clinical registration in China; the Cinenses pulmonary volume reduction pullback ring system has completed clinical trials in Europe and has entered a one-year follow-up phase; the G-branch thoracic and abdominal aortic laminating stent system has completed the FIM clinical (feasibility clinical) enrollment of all patients, with excellent mid-term follow-up results; the IBS absorbable drug-eluting coronary stent system has obtained implied approval for confirmatory clinical trials in China, leading stent treatment for coronary heart disease to fully enter the era of iron-based absorption.
Continuously promote internationalization strategies
The company's sales network has covered more than 100 countries and regions around the world, with nearly 600 agents. In the first half of 2021, the company's overseas revenue was 73.7 million yuan, an increase of 44.3% over the previous year. Three of the company's products received “sympathetic use” approval from the US FDA, including the Lambre left atrial occlusion system, the IBS Titan absorbable drug-eluting peripheral stent system, and the IBS Angel iron-based absorbable stent system. In the future, the company will continue to promote the steady development of the three major businesses in the global market and further increase its market share.
Profit forecast: As one of the leading cardiovascular and peripheral vascular medical device companies in China, Xianjian Technology expects the company's revenue from 2021-2023 to be 9.64, 12.95 and 1,684 million yuan, respectively, regardless of investment income. The company's net profit for 2021-2023 is estimated to be 291, 388 million and 508 million yuan respectively, maintaining the “increase in holdings” rating.
Risk warning: Product development falls short of expectations, product sales fall short of expectations, policy risk of product collection, risk of foreign exchange fluctuations.