APT(688617) Ping An Securities·2024-10-28 07:13Investment Rating - The report initiates coverage with a "Buy" rating for the company [5]. Core Views - The company is a leading player in the cardiovascular intervention field, demonstrating significant product advantages and rapid growth. It has established a strong market presence in cardiac electrophysiology and vascular intervention devices, with a notable increase in surgical volumes and product safety and efficacy recognized in the market [6][8]. Summary by Sections Company Overview - The company, established in 2002, focuses on the research, production, and sales of cardiac electrophysiology and interventional medical devices. It has achieved significant milestones, including being the first domestic manufacturer to obtain market access for electrophysiology electrode catheters and radiofrequency ablation catheters [13][14]. Financial Performance - The company has shown robust revenue growth, with projected revenues of CNY 1.65 billion in 2023, increasing to CNY 3.61 billion by 2026. The net profit is expected to grow from CNY 534 million in 2023 to CNY 1.24 billion in 2026, reflecting a strong compound annual growth rate [4][6][23]. Product Development - The company has a comprehensive product lineup, including electrophysiology, coronary access, and peripheral intervention devices. It has obtained numerous medical device registrations and certifications, positioning itself competitively against foreign products [19][20]. Market Demand - The domestic market for cardiac electrophysiology is rapidly developing, with a significant unmet demand for treatment of tachyarrhythmias. The company is well-positioned to capture market share due to its first-mover advantage and ongoing product development [27][29]. Competitive Landscape - The company has established itself as a leading domestic manufacturer in the electrophysiology sector, with a market share that continues to grow. The competitive landscape shows a low domestic replacement rate, indicating substantial growth potential [7][20]. Strategic Initiatives - The acquisition by Mindray in 2024 is expected to enhance the company's competitive edge through improved resource integration and product performance [13][14]. The company is also focusing on expanding its product offerings in peripheral intervention and non-vascular intervention areas [8][18].