MicroPort EP(688351) 国盛证券·2024-06-02 08:02Investment Rating - The report assigns a "Buy" rating for the company, marking it as the first recommendation [2]. Core Insights - The company has been deeply engaged in the electrophysiology field for over a decade, with its products entering a harvest phase [4]. - The electrophysiology industry is experiencing rapid growth, with significant potential for domestic substitution [4]. - The company is innovating to break the import monopoly and is establishing a solid product moat [4]. - New technologies are expected to yield fruitful results in the near future, with promising products anticipated to launch by 2025 [4]. - The company's financial forecasts indicate a positive outlook for profitability and valuation [4]. Summary by Sections 1. Company Development - The company has a clear equity structure and an experienced management team [4]. - Innovative products are being launched, driving revenue into a high growth phase [4]. 2. Industry Growth - Electrophysiology procedures for treating rapid arrhythmias show significant advantages [4]. - The patient base for cardiac electrophysiology is large, but the penetration rate is low, laying the foundation for rapid industry growth [4]. - The market is currently dominated by imported manufacturers, but domestic companies are actively expanding, indicating vast potential for domestic substitution [4]. 3. Innovation and R&D - The company is introducing new three-dimensional electrophysiology equipment, enhancing installation rates through a "sales + deployment + follow-up" strategy [4]. - High-density mapping catheters are breaking the import monopoly, and the company has launched the first domestic pressure monitoring catheter [4]. - The company is also focusing on a dual layout of radiofrequency and cryoablation catheters, with a gentle price reduction expected from centralized procurement [4]. 4. Future Technologies - The company is developing promising new technologies, such as pulsed ablation, which is expected to launch in 2025 [4]. - Renal denervation (RDN) is emerging as a new therapy for hypertension, with a vast market potential [4]. 5. Financial Forecasts and Valuation - The report includes profitability forecasts and key assumptions, indicating a positive trend in financial performance [4]. - The company’s gross margin has improved from 60.28% in 2015 to 72.43% in 2021, with fluctuations due to product mix changes and price reductions from centralized procurement [14]. - The average cost of catheter products has decreased by 10.52% in 2023, with expectations for continued improvement in profitability as sales scale up [14].