APT(SH:688617)2025-07-03 15:28Summary of Huatai Medical Conference Call Company and Industry Overview - Company: Huatai Medical - Industry: Electrophysiology and Medical Devices Key Points and Arguments 1. PFA Product Approval: Huatai Medical's PFA product is expected to be approved for market launch by the end of 2024, offering differentiated advantages in general anesthesia, pressure sensing, and 3D mapping, which align closely with domestic clinical practices, potentially allowing for a competitive edge over foreign manufacturers [2][3][4] 2. PFA Technology Advantages: PFA technology induces myocardial cell death through high-voltage electrical pulses, providing high tissue selectivity, good safety, and reduced reliance on thermal energy, which shortens surgery time and lowers the experience requirement for operators [2][4][10] 3. Market Growth: The global electrophysiology market was approximately $8 billion in 2023, with a projected compound annual growth rate (CAGR) of 13% from 2024 to 2026. The atrial fibrillation market is expected to grow rapidly, with PFA technology's market share anticipated to rise from less than 5% currently to 40%-60% by 2026, and potentially 60%-80% by 2028 [2][10] 4. Domestic Patient Statistics: In 2022, there were 8.32 million hospitalized patients with arrhythmias in China, with a continuous increase in catheter ablation procedures. The long-term potential for PFA procedures in China is estimated to reach between 800,000 and 1.02 million cases, translating to a market size exceeding 10 billion RMB [2][11][12] 5. Competitive Landscape: Domestic companies like Huatai Medical, Jinjiang Electronics, and Denovo have received NMPA approval for their PFA systems, showcasing differentiated advantages that align with local clinical habits, which may lead to significant changes in the domestic electrophysiology landscape [2][6][14] 6. Sales and Marketing Strategy: Huatai Medical has a sales team of over 200, with a focus on PFA products. The company aims to establish a minimum of 3,000 terminal orders for the year, indicating strong promotional efforts and positive reception from doctors regarding their 3D mapping technology and product combinations [4][18] 7. Other Business Segments: Besides electrophysiology, Huatai Medical has strong performance in other segments, including coronary intervention with over 15% market share, peripheral intervention at about 5%, and urological stone products at around 20% [19] 8. Future Development Directions: The company plans to focus on expanding its product coverage in vascular access and stent markets, while also developing non-vascular intervention products, indicating a strategy for diversified growth [20] Additional Important Information - Clinical Value of PFA: PFA technology offers significant clinical value compared to traditional RF ablation, with faster ablation times and reduced overall procedure durations, making it more appealing to domestic physicians [17] - Market Penetration: The penetration of PFA technology in the Chinese market is expected to mirror that of Japan, with substantial growth potential in the coming years [12][14] - Product Design Differences: Domestic manufacturers have advantages in mapping, modeling, and compatibility design, with Huatai Medical's products being the only ones featuring a 3D mapping platform, which aligns with traditional RF ablation practices [15][16]