Medical industry listed companies by virtue of their own performance growth and this year's epidemic of event-driven outbreaks, many pharmaceutical stocks rose time nearly two years, doubled and then doubled, forming a good wealth effect.
Of course, this recent period of time, the pharmaceutical stock adjustment is obvious, the old stock adjustment is relatively mild, the new stock, the new stock adjustment fluctuations violent, but if the fundamentals of the performance has not changed under the premise of this disk normal fluctuations in the reasonable, at this time, but is conducive to the investors in the layout of the low. Today we look at the fundamentals of a medical device company: heart pulse medical (688016).
Heartbeat Medical (688016):
The company was founded in 2012, focusing on the aortic and peripheral vascular interventional medical device research and development, production and sales, and currently has a thoracic aortic lining system, abdominal aortic lining system, intraoperative stenting system and peripheral Currently, we have nine major marketed products and many products under development, such as thoracic aortic membrane system, abdominal aortic membrane system, intraoperative stent system and peripheral balloon dilatation catheter.
The company is y engaged in the field of vascular interventional medical devices, and is a leading enterprise in China with a complete range of products, leading scale and market competitiveness. The company has successfully developed the first domestic abdominal aortic coated stent and the only domestic intraoperative stent system approved for use in thoracic aortic coarctation surgery.
The company has achieved the first in China and even the first in the world in many products
The company is a global leader in aortic vascular intervention technology, successfully breaking through the integrated release of the coated stent, successfully realizing the post-release design of the coated stent, and successfully solving the problem of the coated stent's precise release.
The Company is a global leader in the field of aortic vascular interventions, successfully breaking through the integrated release of coated stents, successfully realizing the precise release of coated stents, successfully solving the core technical challenges of the Low Profile installation process, and successfully developing a number of core processes, such as stent polishing, drug coating and hydrophilic coating. On this basis, we have successfully developed the first domestically produced abdominal aortic coated stent, the only approved and marketed intraoperative stent system for thoracic aortic coarctation surgery, and the world's first approved and marketed branching aortic stent.
As of the end of 2018, there were 205 innovative medical devices entering the special approval channel nationwide***, and the company is in a leading position with 5 of its listed and in-development products having entered the said channel.
The company's products have covered more than 700 hospitals in 30 provinces, autonomous regions and municipalities directly under the central government in China, and has established cooperative relationships with more than 100 distributors, and has become more competitive in terms of the number of distributors, terminal hospitals, and the ability to cover sales areas. In addition, the company has been in many second- and third-tier cities marketing channel layout, with China's residents living standards continue to improve and medical consumption upgrade, the future penetration rate of the region's microtrauma interventions will be further increased, the company can be the first to benefit from the process of market expansion.
Core Technology:
As of March 2019, the company owns 86 patents that have been authorized both domestically and internationally, of which 61 patents are authorized domestically (43 invention patents), and 25 patents are authorized outside of the country (all of which are invention patents). Since its inception, the company has been y engaged in the field of aortic and peripheral vascular interventional medical devices and has continuously increased the research and development of new products and technologies, and has continuously improved and innovated its product technologies.
In the new product development pipeline, the peripheral drug balloon is expected to be approved this year, and the development of the straight tube-type laminating stent and the Fontus branch-type intraoperative stent is progressing fast, with a number of products in pre-research.
Financial results:
2016-2018 operating income of 125 million yuan, 165 million yuan and 231 million yuan, respectively, a 3-year compound growth rate of 35%; maternal net profit of 41.11 million yuan, 63.39 million yuan and 90.65 million yuan, respectively, a 3-year Compound growth rate of 48%. Overall, the company is in a period of rapid growth.
The company's gross and net profit margins are stable and high. 2016-2018 gross profit margins were 77.7%, 78.7% and 79.2%, respectively; net profit margins were 32.8%, 38.4% and 39.2%, respectively, all of which are showing a steady upward trend.
Industry Trends:
The global medical device market is growing at a rate of 5.6%, with China's market growing at about 20%. According to EvaluateMedTech data, global medical device sales amounted to USD 405 billion in 2017 and are expected to increase to USD 594.5 billion in 2024, at a CAGR of about 5.60%.
From 2014-2018, the market size of medical devices in China grew from 255.6 billion yuan to 530.4 billion yuan, with a CAGR of 20.0%. The medical device industry belongs to the strategic emerging industries that China focuses on supporting, and has a broad development prospect. With the aging of China's population, the improvement of residents' health awareness, and the deepening of the government's support policies, the medical demand will continue to release, which will promote the continued expansion of the medical device market.
In 2017, China's cardiovascular interventional devices market size of 15.21 billion yuan, is expected to reach 29.49 billion yuan in 2022, with a compound annual growth rate of 14.2%.
China's cardiovascular disease involves about 290 million people, with the application and popularization of minimally invasive interventional procedures, coupled with the expansion of indications brought about by product innovation, China's cardiovascular market has great potential.
It is estimated that there are about 2 million patients with aortic coarctation and aortic aneurysm and 50 million patients with peripheral arterial disease in China, while the volume of aortic interventions in 2017 was about 26,000 and peripheral arterial interventions were about 99,000; compared to 11 million patients with coronary arteries and more than 1 million annual procedures, there is still a large room for improvement.
In addition, the localization rate of aortic interventional devices is about 50%, while the peripheral in addition to the drug balloon, basically monopolized by foreign investors, compared with the coronary stent 80% of the localization rate, there is also a trend of further substitution.
China's coronary intervention has basically matured, and the core instruments coronary stents have basically completed the import substitution, the future market share will remain stable growth.
China actively encourages the research and development of domestic innovative medical devices and gives sufficient policy support, domestic technology continues to innovate, in the field of aortic interventional medical devices, Wicresoft, the first health science and technology and other outstanding medical device companies to stand out, the level of product technology continues to catch up with the foreign products, to realize the domestic aortic stent from scratch. At present, the thoracic and abdominal aortic interventional device localization rate of about 55%, 35%, but with the relatively mature coronary interventional field of 80% localization rate compared to the future there is still a large market to enhance the space.