Shanghai Microport Endovascular Medtech (Group) Co.Ltd(688016) (688016)
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On December 17, the company announced that it had obtained the medical device registration certificate of branch intraoperative stent system issued by the State Food and drug administration. The registration certificate is valid from December 14, 2021 to December 13, 2026, and is registered as class III medical devices.
The product is applicable to the surgical treatment of Stanford type A and complex Stanford type B aortic dissection that cannot be treated by conventional intervention.
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It is an exclusive product in the Chinese market, and the competition pattern of intraoperative stent industry is good. There are 30 million patients with aortic diseases in the world and 4 million in China, of which 40% involve the ascending aorta. The incidence of acute type A aortic dissection is sudden, the disease progress is rapid and dangerous, and the mortality in the acute stage is very high. At present, the main treatment method is elephant trunk surgery with total aortic arch replacement and stent. At present, only Shanghai Microport Endovascular Medtech (Group) Co.Ltd(688016) products in China have been approved for listing, and the industry has a good competition pattern.
Fontus has significant advantages in product upgrading and strong R & D and innovation strength. Fontus branch intraoperative stent system is an upgraded product of Cronus. Compared with Cronus, fontus significantly simplifies the surgical operation, has better flexibility, can meet the needs of a variety of surgical methods, and gives doctors more choices; The integrated design of the conveying system can accurately realize the positioning and release of the main body and branches. It is expected that the product is expected to achieve rapid promotion after listing, injecting strong growth power into the company’s intraoperative stent product pipeline.
Rich innovative R & D pipelines and set long-term incentive and assessment objectives. The company has a large number of products under research. In addition to intraoperative stents, the company has rich R & D project reserves in the fields of aortic covered stents, peripheral arteries, peripheral veins and tumor intervention. The R & D strength is leading in China and the long-term growth power is sufficient. In September 2021, the company announced the equity incentive plan with a vesting time of up to 7 years, taking the income growth and the number of three types of medical device registration certificates as the assessment objectives, demonstrating the company’s long-term growth confidence.
Profit adjustment and investment suggestions
We are optimistic about the company’s competitiveness in the field of aortic stents. At the same time, the layout of peripheral vascular intervention field has great potential in the future. It is expected that the company’s net profit attributable to the parent company will be 307 million yuan, 416 million yuan and 556 million yuan respectively from 2021 to 2023, with a year-on-year increase of 43%, 36% and 34%, maintaining the “buy” rating.
Risk statement
New product development fails to meet expectations; Risk of product price reduction caused by medical insurance fee control policy; The capacity construction and use did not meet expectations; Product promotion and demand did not meet expectations.
