APT(688617) 国盛证券·2024-10-09 08:12Investment Rating - The report initiates coverage with a "Buy" rating for the company [1] Core Views - The company is a leading domestic player in electrophysiology and vascular intervention, with a diversified product portfolio and strong channel expansion [1] - The acquisition by Mindray Medical is expected to enhance the company's R&D and global sales capabilities [1] - The electrophysiology market is highly promising, with significant potential for domestic substitution [1] - The company's vascular intervention platform is steadily improving, with rapid growth in peripheral and non-vascular intervention segments [1] Financial Performance - Revenue is projected to grow from RMB 2,083 million in 2024 to RMB 3,578 million in 2026, with a CAGR of 26.2%, 30.9%, and 31.2% respectively [1] - Net profit attributable to shareholders is expected to increase from RMB 707 million in 2024 to RMB 1,276 million in 2026, with a CAGR of 32.4%, 35.1%, and 33.7% respectively [1] - EPS is forecasted to rise from RMB 7.26 in 2024 to RMB 13.11 in 2026 [1] Electrophysiology Business - The company's electrophysiology business revenue grew from RMB 97 million in 2017 to RMB 368 million in 2023, with a CAGR of 24.86% [1] - The company completed approximately 7,500 3D electrophysiology surgeries in H1 2024, a year-on-year increase of over 100% [1] - The domestic electrophysiology market is expected to grow from RMB 6.58 billion in 2021 to RMB 15.73 billion in 2025, with a CAGR of 24.34% [1] Vascular Intervention Business - The company's vascular intervention business revenue surged from RMB 10 million in 2017 to RMB 791 million in 2023, with a CAGR of 105.77% [1] - The company's vascular intervention products are now used in nearly 4,000 hospitals, with peripheral product adoption increasing by over 30% and coronary product adoption by nearly 20% in H1 2024 [1] - The domestic PCI device market is projected to grow from USD 1.27 billion in 2021 to USD 3.75 billion in 2030, with a CAGR of 12.78% [1] Peripheral and Non-Vascular Intervention - The company's peripheral intervention business has grown rapidly since its launch in 2019, with a CAGR of 67.05% from 2019 to 2023 [1] - The domestic peripheral intervention market is expected to grow from RMB 3.5 billion in 2015 to RMB 18.6 billion in 2023, with a CAGR of 23.22% [1] - The company is actively developing non-vascular intervention products, aiming to create new growth drivers [1] R&D and Innovation - The company's R&D expenses increased from RMB 50 million in 2017 to RMB 238 million in 2023, with a CAGR of 29.70% [1] - The company has 479 R&D personnel, accounting for 19.78% of total employees, and has obtained 91 domestic medical device registration certificates [1] - Several key R&D projects, including pulse ablation products and high-density catheters, are in the registration review stage [1] Market and Industry Trends - The electrophysiology market is dominated by foreign players, with Johnson & Johnson, Abbott, and Medtronic holding 86.9% of the market share in 2020 [1] - The domestic electrophysiology market is expected to benefit from centralized procurement policies, accelerating the substitution of domestic products [1] - The company's products are competitive with imported brands in terms of performance, and the company is well-positioned to capitalize on the growing market [1]