Xinmai Medical (688016) New Stock Analysis: Leader in Aortic Implantation
Key points of investment: Leading enterprise of aortic and vascular interventional medical devices: Xinmai Medical’s main military aortic and vascular interventional medical devices are developed, produced and sold.
The company’s listed products mainly include aortic stents, intraoperative stents, extended vascular stents and balloons, etc. Among them, aortic stents contribute more than 80% of operating income.
As the leading company in the aortic intervention market, the company ranked second in the aortic intervention market in 2018, and ranked first in the domestic brand market share.
The market for aorta and arterial vascular intervention is growing faster: on the other hand, the detection rates of other aortic diseases and transvascular diseases continue to increase, and the treatment penetration rate is gradually approaching mature markets.
According to Frost & Sullivan data, the annual aortic endovascular medical device market size in 2017 was 10.
300 million, is expected to reach 19 in 2022.
50,000 yuan, with a compound growth rate of 13 in 2018-2022.
6%, still in the rapid development stage.
The domestic vertical vascular interventional medical device market size was 17 in 2013.
0 billion to 30 in 2017.
1 trillion, compound strength of about 15.
4%, is expected to increase to 71 by 2022.
At present, the region’s market is mainly replaced by foreign companies, and the R & D capabilities of manufacturing companies are constantly increasing. It is expected that the market share of domestic medical devices will continue to increase.
The company’s product technology has outstanding advantages and strong R & D capabilities: The company’s aortic intervention products are leading the industry in technology and are classified with similar products in the market. The company’s product technology innovation is significant, and many products have achieved China’s number one or even the world’s number one.
In 2018, the company’s R & D expenditure accounted for 20% of its revenue.
7%, much higher than other comparable companies.
By the end of 2018, a total of 205 innovative medical devices across the country have entered the special approval channel, and the company has listed on the market and 5 of the products under research have entered the above channel.
The company’s current research projects cover the company’s entire product line. Among them, the Fontus segmented intraoperative stent, Talos straight tube thoracic aorta stent graft system, drug balloon dilatation catheter and other products have made rapid progress. It is expected to be launched one after another to further enrich the company.Existing product line.
Raised funds project: The company plans to raise funds6.
US $ 5.1 billion was invested in the aorta and interventional vascular interventional medical device industrialization projects, the aortic and transfer vascular interventional medical device research and development projects, and the marketing network and informatization construction projects are expected to supplement working capital.
Among them, the medical device industrialization project of aortic and vascular interventional treatment is completed, and it will be able to produce an annual capacity of 35,100 medical devices for aortic and vascular interventional treatment.
Further expand the company’s market share and brand influence in aortic and branch vascular interventional medical devices.
Investment suggestion: We expect the company’s operating income from 2019 to 2021 to be 3 respectively.
05 ppm, 3.
9.2 billion and 4.
89 ppm, net profit is 1.
1.3 billion, 1.
4.3 billion, 1.
Based on the PE (2019E) and PEG (2019E) of comparable A-share listed companies as references, we can consider that the company’s overall conversion level is 28.
60,000 yuan, calculated based on the total number of existing shares combined 苏州桑拿网 with the number of shares to be issued (assuming no over-allotment option is not used), the company’s reasonable issuance range is 40-54 per share.
Risk reminder: risks related to the “two-vote system”; risks related to the centralized procurement of high-value medical consumables; DRG (grouping according to disease diagnosis) to evaluate policy-related risks; control rights change risk; product market risk