2021H1 performance exceeded expectations, revenue and net profit are growing rapidly.
Revenue in the first half of 2021 reached 461 million yuan (+ 69%), an increase of 50% compared with the same period last year, with the domestic market rebounding strongly, up 75% year-on-year, and overseas markets growing 44% year-on-year, basically returning to revenue levels for the same period in 2019. The net profit of homing is 204 million (+ 107%), an increase of 121% over 2019, including 28 million investment income.
The three major business lines are growing rapidly, with R & D harvesting multi-milestone peripheral vascular disease business income of 287 million (+ 50%), of which aortic covered stent increased by 61% compared with the same period last year; structural heart income of 159 million (+ 101%), of which congenital heart disease occluder increased by 85.5% year on year; left atrial appendage occluder LAmbre sales of nearly 48 million (+ 148%) in the first half of the year. Pacemaker business revenue increased by 508% in the first half of the year compared with the same period last year. Research and development progress, the exclusive product G-iliac iliac artery bifurcation stent in the domestic market approval, Xuper multi-branch intraoperative stent CE certification, the new generation of abdominal master Yuranos is expected to be listed in the domestic market by the end of this year, arch covered stent (chimney technology) to complete all patients into the group, it is expected that 2023H1 will be approved in the country, several innovative products listed in succession will further enhance the comprehensive competitiveness of the company's aortic products. The LAnavi segmented bend control guidance system is listed in China, which is helpful to further optimize the learning curve of LAmbre. The Cinenses lung volume reduction ring system was clinically enrolled in Europe and entered an one-year follow-up. Iron-based platform has also achieved a number of milestones: IBS Angel has been listed in Malaysia, and has been approved for "compassionate use" in the United States, and is expected to obtain CE certification this year; IBS Titan completed its first implant through "compassionate use" in the United States, and started clinical trials in China; IBS Coronary artery is approved to conduct confirmatory clinical trials in China, and FIM clinical data are expected to be disclosed by the end of this year.
Risk tips: epidemic risk; R & D and approval fell short of expectations; health insurance fee control policy exceeded expectations; investment suggestions: raise profit forecast and maintain "buy" estimated 2021-23 return net profit of 3.52 billion yuan (2.31pm 2.83x346) million yuan, a year-on-year growth rate of 6328pm 27%; diluted EPS=0.08/0.10/0.12 yuan, the current stock price corresponds to PE=44/34/27x. As a leader in the field of minimally invasive intervention, the company is in a leading position in many segments, and has great potential strategic assets such as left atrial appendage occlusion and iron-based absorbable material technology. aortic intervention products have been on the market since 2021. With the continuous improvement of the product pipeline, the performance has entered a period of rapid growth, with a target price of HK $5.49 to HK $5.96, maintaining "buy".
Rating.