Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 7.50, indicating a potential upside of 156% from the current price of HKD 2.93 [2][3]. Core Insights - The company's value is considered undervalued by the market, primarily due to concerns over the TAVI (Transcatheter Aortic Valve Implantation) business and the impact of being removed from the Hong Kong Stock Connect list. The report suggests that these concerns have already been reflected in the stock price decline [3]. - The report highlights that the market is overly focused on the TAVI business while underestimating the growth potential of the neurointervention segment, which has shown strong performance [3]. - Potential catalysts for a stock price turnaround include the resolution of the "out of connect" issue, the implementation of price-volume exchange in valve procurement, achieving profitability by 2026, and the launch of new products like TaurusTrio [3]. Financial Performance Summary - For 1H24, the company reported revenue of RMB 300 million, a year-on-year increase of 34%. The cardiac valve segment generated RMB 130 million (up 21% YoY), while the neurointervention segment saw revenue of RMB 170 million (up 46% YoY) [3][10]. - The company reduced its net loss to RMB 71.28 million in 1H24, a 66% improvement compared to a loss of RMB 210 million in 1H23 [3][10]. - The report projects revenue growth to RMB 600 million in 2024, with a CAGR of 28% from 2024 to 2026 [4][5]. Market Position and Valuation - The company has a market capitalization of HKD 1.861 billion and a current price-to-sales (P/S) ratio of 2.8 based on 2024 estimates [2][12]. - The report indicates that the company’s cardiac valve and neurointervention businesses are valued at HKD 23 billion and HKD 28 billion, respectively, contributing to the target market value of HKD 51 billion [3]. Product Pipeline and Development - The report outlines the company's product pipeline, including various cardiac valve products and neurointervention devices, with several products expected to receive regulatory approval in the coming years [13].
沛嘉医疗-B：公司价值被市场低估，“出通”为短期压制股价最大因素