Core Viewpoint - CICC maintains the profit forecast for Peijia Medical-B (09996) for 2025/26 and keeps the outperform rating unchanged, raising the target price by 25% to HKD 10, indicating an 18% upside potential from the current price [1] Group 1: TAVR Business Performance - TAVR (Transcatheter Aortic Valve Replacement) revenue for 1H25 reached RMB 162 million, a year-on-year increase of 25%, with terminal implant volume exceeding 2,050 units, up 19.8% [2] - The company achieved its first commercial profitability in the valve segment with RMB 29 million, while the R&D expense ratio decreased by 16.7 percentage points to 33.5% [2] - Three important in-development products, including regurgitant TAVR, long-lasting TAVR, and mitral valve clip, have completed registration clinical follow-ups, with expected approvals between the end of 2025 and mid-2026 [2] Group 2: Neurointervention Business Outlook - Neurointervention revenue for 1H25 was RMB 192 million, a year-on-year increase of 12%, with segment profit reaching RMB 41 million, up 42.4%, and a net profit margin of 21% [3] - The DCwire micro-guidewire has successfully gained traction domestically, with revenue increasing by 140%, and is expected to receive US 510(k) approval by the end of 2025 [3] - The company remains optimistic about the second half of 2025, anticipating a sequential acceleration in growth, with a projected annual revenue growth of 20-30% for the neurointervention segment [3]

Core Viewpoint - 中金 maintains its earnings forecast for Peijia Medical-B (09996) for 2025/26 and keeps its outperform rating unchanged, citing a recovery in the Hong Kong pharmaceutical sector and the expected approval of multiple new products by mid-2026 [1] Group 1: TAVR Business Performance - In 1H25, TAVR (transcatheter aortic valve replacement) revenue reached 162 million HKD, a year-on-year increase of 25%, with over 2,050 units implanted, up 19.8% [2] - The company achieved its first commercial profitability in the valve segment with a profit of 29 million HKD, and the R&D expense ratio decreased by 16.7 percentage points to 33.5% [2] - The company anticipates that three important products, including regurgitant TAVR, long-acting TAVR, and mitral valve clips, will be approved between the end of 2025 and mid-2026, potentially reshaping the competitive landscape in China [2] Group 2: Neurointervention Business Outlook - In 1H25, neurointervention revenue was 192 million HKD, a year-on-year increase of 12%, with segment profit reaching 41 million HKD, up 42.4%, resulting in a net profit margin of 21% [3] - The domestic launch of DCwire micro-guidewires saw a revenue increase of 140%, and the company expects to obtain US 510(k) approval for this product by the end of 2025 [3] - The company remains optimistic about accelerating growth in the neurointervention segment in 2H25, projecting a year-on-year revenue growth of 20-30% for the entire year of 2025 [3]

Group 1 - The company reported a revenue of approximately 353 million yuan for the first half of 2025, representing a year-on-year growth of 17.3% [1] - Gross profit reached 248 million yuan, with a year-on-year increase of 13.14% [1] - Research and development expenses were about 116 million yuan, showing a year-on-year growth of 15.1% [1] Group 2 - The sustainable revenue growth is primarily attributed to strong sales growth in transcatheter valve therapy and neurointervention businesses [1] - Sales revenue from TAVR-related products increased by 24.0% to 162 million yuan, driven by market share gains in China's transcatheter aortic valve replacement market and a shift towards newly launched high-end products [1] - The total number of implants exceeded 2,050 units during the reporting period, reflecting a year-on-year growth of approximately 18.8%, surpassing market growth [1] Group 3 - Sales revenue from neurointervention products rose by 12.2% to 192 million yuan, driven by deeper market penetration of existing products and the successful launch of the newly approved YonFlow blood flow-directed mesh stent [1] - The DCwire microcatheter, launched commercially in 2024, significantly expanded market share with a revenue growth of nearly 140% [2] - The YonFlow blood flow-directed mesh stent received regulatory approval in April 2025 and achieved its first commercial implant by June 2025, with procurement completed in over 20 provinces [2]

Core Insights - The article highlights the significant advancements and market position of Jiangsu Suzhou-based company, Peijia Medical, particularly its subsidiary, Gaki Bio, in the neuro-interventional medical device sector [1][2][3] Group 1: Company Overview - Gaki Bio, established in 2006, has developed China's first commercialized spring coil and offers a comprehensive range of products addressing hemorrhagic, ischemic, and access solutions [1] - The company is expected to break even in 2024, marking an 18-year journey from obscurity to industry leadership [1] Group 2: Product Development and Market Strategy - The Syphonet thrombectomy stent, launched in February 2022, quickly became the market leader among domestic products, showcasing Gaki Bio's effective research and development strategy [2] - Gaki Bio's approach involves launching a complete suite of products simultaneously to address all surgical needs, enhancing the usability and effectiveness of their devices [2] - The Fastunnel delivery balloon catheter, approved in May 2022, features an integrated design that simplifies complex procedures, reducing the number of steps required in surgeries [3][4] Group 3: Innovation and Clinical Needs - Gaki Bio has developed 16 products that have received approval for sale, with plans to submit 5 to 6 additional registration applications this year, focusing on unmet clinical needs [4] - The company has adopted a "medical-engineering collaboration" innovation methodology, which has proven effective in the neuro-interventional device market [3][4] Group 4: Operational Efficiency and Supply Chain - Gaki Bio has achieved over 90% localization in its supply chain, sourcing more than 90% of its raw materials from domestic suppliers, which enhances cost efficiency and responsiveness [5][6] - The company has implemented lean production standards, resulting in increased operational efficiency and a reported gain of over 20 million yuan in product development [5][6]