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]