Balance Medical(SH:688198) East Money Securities·2025-11-03 11:21Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market index [2][6]. Core Insights - The company has demonstrated impressive year-on-year growth, with a revenue increase of 30.58% and a net profit growth of 57.93% for the first three quarters of 2025 [5][6]. - The structural heart disease segment has seen significant revenue growth, particularly from the artificial biological heart valve, which increased by 89.83% year-on-year [5]. - The company is actively pursuing the registration of 12 products, with 8 already in the review phase, indicating strong future growth potential [5][6]. - The development of innovative products, such as the modular interventional valve, is progressing well and is expected to provide comprehensive treatment options for patients [5]. Financial Performance Summary - For the first three quarters of 2025, the company reported revenues of 382 million yuan and a net profit of 93 million yuan [5]. - The projected revenues for 2025, 2026, and 2027 are 698.40 million yuan, 1,014.55 million yuan, and 1,349.32 million yuan, respectively, with corresponding net profits of 245.22 million yuan, 406.44 million yuan, and 555.12 million yuan [7][12]. - The earnings per share (EPS) are expected to grow from 1.78 yuan in 2025 to 4.03 yuan in 2027, reflecting strong profitability growth [6][12]. Market Position and Growth Drivers - The company is expected to continue increasing its market share in traditional product areas, driven by the rising incidence of structural heart diseases and the expanding indications for transcatheter aortic valve replacement (TAVR) procedures [6]. - The anticipated growth in the heart surgery demand and the expansion of the patient population eligible for secondary valve replacement are key factors supporting the company's growth trajectory [6].