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 2024 procurement cycle, the company achieved price increases in its bids, which is expected to enhance profitability and support profit recovery [1] - The international strategy involves a dual-brand approach, utilizing the "JRI" brand to compete in the high-end markets of Europe and the U.S., while the "AK" brand focuses on production scale advantages to penetrate emerging markets. This strategy is anticipated to drive significant growth in foreign revenue [1] Group 2: Technological Advancements and Market Potential - The company is a pioneer in digital orthopedic solutions, having developed a comprehensive ecosystem that includes pre-surgical planning, intraoperative navigation, robotic precision, and personalized implant placement. The K3 knee surgery robot is set to launch in 2024, with competitive capabilities comparable to the Mako surgical robot, while also offering local responsiveness and cost advantages [2] - The market for robotic-assisted joint replacement surgeries in China is expected to grow significantly, with penetration rates projected to rise from 0.03% in 2020 to 3.05% by 2026, and the market size is forecasted to increase from $1.48 million in 2020 to $332 million by 2026, reflecting a compound annual growth rate of 45.6% [2]