Workflow
脑动极光-B：IPO申购指南：脑动极光─B
国元国际控股·2024-12-31 03:12

Investment Rating - The report recommends a cautious subscription for the company Brainstorm Aurora-B (6681.HK) [2] Core Insights - The company has developed medical-grade digital therapy products targeting cognitive impairments, with a product pipeline addressing various cognitive disorders caused by vascular diseases, neurodegenerative diseases, mental disorders, and developmental defects in children. The core product is the first regulatory-approved digital therapy for cognitive impairment in China, utilizing evidence-based medicine and deep neural networks for personalized treatment plans [2][3] - The company's revenue from 2021 to 2023 was RMB 2.3 million, RMB 11.3 million, and RMB 67.2 million, with a mid-year revenue of RMB 52.2 million in 2024. However, the company reported losses from 2021 to 2023, with a mid-year loss of RMB 114.4 million in 2024 [2] - The company holds 40 patents and 70 patent applications in China, along with 9 pending patent applications overseas. It has developed two core technologies: virtual human technology and AI technology, which provide a solid foundation for its systems and other products [2] - The market for cognitive impairment digital therapy in China reached RMB 268.6 million in 2023, projected to grow to RMB 1,046.7 million by 2025 and RMB 8,927.4 million by 2030, with a compound annual growth rate (CAGR) of 53.5% [2] - According to Frost & Sullivan, the company is the first in China to develop medical-grade digital therapy products for cognitive impairment using brain science and advanced AI technology. In 2023, the company held a market share of 25.0% in the cognitive impairment digital therapy market and 91.6% in the medical-grade cognitive impairment digital therapy market [2] - Post-IPO, the company's estimated market capitalization is approximately HKD 3.67 billion, indicating a strong competitive advantage in the cognitive impairment digital therapy market, although the valuation is considered not cheap, hence the cautious subscription recommendation [2]