Core Viewpoint - The report from Cinda Securities initiates coverage on Aikang Medical (01789) with a "Buy" rating, highlighting its leadership in the domestic artificial joint market and potential for rapid growth in orthopedic implant business due to domestic procurement price increases and successful international brand expansion [1] Group 1: Domestic Market Dynamics - The company is leveraging the opportunities presented by domestic procurement, gradually replacing imported products, which is leading to increased hospital coverage and market share. In the upcoming procurement for 2024, the company has achieved price increases in its bids, which is expected to enhance profitability and support profit recovery [1] - The company’s international strategy involves a dual-brand approach to cater to different market demands, utilizing the "JRI" brand for high-end markets in Europe and the US, while the "AK" brand focuses on production scale advantages in emerging markets. This strategy is anticipated to drive significant growth in overseas revenue [1] Group 2: Technological Advancements and Market Potential - The company is recognized as a pioneer in digital orthopedic solutions in China, having established a comprehensive digital ecosystem for orthopedic surgeries, which includes pre-operative planning, intra-operative navigation, robotic precision, and personalized implant solutions. The K3 knee surgery robot is set to launch in 2024, expected to compete with the Mako surgical robot while offering localized responsiveness and cost advantages [2] - The market for robotic-assisted joint replacement surgeries in China is projected to grow significantly, with penetration rates expected to rise from 0.03% in 2020 to 3.05% by 2026, and the market size forecasted to increase from $1.48 million in 2020 to $332 million by 2026, reflecting a compound annual growth rate of 45.6% [2]