China’s aortic and peripheral vascular interventional medical devices are in a period of rapid growth, but the market is still occupied by foreign companies.
It is considered to be “China’s Nasdaq”. Since the official transaction, the science and technology board has received much attention from all. Some people think that this is a new wealth-producing and distributing center. On the first day, it was “born” 125 billionaires; some people think that this is a test field for innovation in China’s securities market, and the registered capital is for the first-tier market startups, VC, PE. The organization has a subtle influence.
But there is no doubt that in the long run, it is more likely to be the touchstone of the value of hard technology companies. Therefore, at this time node, we launched the “Overview of the Board” series, hoping to bring readers to quickly understand the company.
In China’s per capita medical expenditure, China’s aortic vascular interventional medical devices are in a period of rapid growth. The market size has increased from 550 million yuan in 2013 to 1.03 billion yuan in 2017, with a compound growth rate of 17.2%. With the continuous development of aortic disease screening technology, the continuous improvement of clinical related experience and the continuous improvement of people’s health awareness, the market size of aortic interventional medical devices in China is expected to increase to 1.95 billion yuan in 2022.
The heart medicine of this article is mainly engaged in the research and development, production and sales of medical devices for aortic and peripheral vascular interventions. According to Frost & Sullivan’s research report, according to the surgical volume of product application, the company ranked second in the market share of aortic vascular intervention medical devices in China in 2018 (the first company is Medtronic), domestic brands Market share ranked first.
Xinmai Medical was listed on July 22, 2019. As of 15:00 on October 11, 2019, Xinmai Medical’s share price was 134.85 yuan.
Company Profile and Growth History
Shanghai Wei Chuang Xinmai Medical Technology Co., Ltd. (hereinafter referred to as “Xinmai Medical”) was established on August 17, 2012 and is a holding subsidiary of MicroPort Medical, a company listed on the Hong Kong Stock Exchange. Xinmai Medical is mainly engaged in the research and development, production and sales of medical devices for aortic and peripheral vascular interventions. In the field of aortic interventional medical devices, the company’s main products are aortic stent graft systems; in the field of peripheral vascular interventional medical devices, it currently has peripheral vascular stent systems, peripheral vascular balloon dilatation catheters and other products; in addition, the company has the only domestic A batch of intraoperative stent systems that can be used in thoracic aortic dissection surgery.
According to the prospectus, the company’s main business is divided into three categories: aortic stents, intraoperative stents, and other products. In 2016-2018, the company’s main business income was 120 million yuan, 160 million yuan, and 220 million yuan respectively. In 2017 and 2018, the main business increased by 32.7% and 42.2%. Among them, the income of aortic stents is averaged in the main business.The proportion is about 80%, and the proportion is higher.
The company’s continued revenue growth is driven by technology, products and markets:
1. With the increase in the detection rate of aortic diseases and the popularity of micro-trauma interventional procedures, the company is leading the way in the field of aortic interventional medical devices, with obvious head effect and rapid growth in income scale;
2. The company’s sales channels are becoming more and more perfect, and the number of terminal hospitals is increasing year by year. In addition, the company began to sell overseas in 2018, which effectively complemented the domestic market;
3. The company’s new product, Castor branch-type stent graft, was launched at the end of the third quarter of 2017. The indications for the current straight-tube products were extended from the descending aorta to the aortic arch. With technological innovation and product first-mover advantage, It has been widely recognized in the market and contributed incremental income for 2018.
Company’s financial data and analysis, the risks faced by the company
According to the prospectus, the total revenue of the company is 120 million yuan, 160 million yuan and 230 million yuan in 2016-2018, with an average annual growth rate of about 35%, of which the main business income accounts for the proportion of operating income. More than 96%, the main business is outstanding. The company’s other business income is mainly processing service income, technical service income and rental income.
Despite the rapid growth in revenue, the company still faces risks from policy and market size.
Because the company is a medical device manufacturer, it is strictly regulated by the State Food and Drug Administration and other competent authorities. In recent years, the state has further deepened the reform of the medical and health system, which has had a certain impact on the development of the industry, such as the “two-vote system”, the DRGs (subject to disease diagnosis related group) payment policy, and the high-value medical consumables centralized procurement.
In terms of market size, the company’s sales revenue accounts for the highest proportion of aortic stent products, but due to the country’s mainThere are still gaps in market size compared with mature foreign markets due to the related disease screening rate and relatively low medical treatment rate in the field of arterial intervention. Although the potential growth space is relatively large, the current overall market size is relatively limited; in addition, China’s peripheral vascular interventional medical device market has a large market capacity, but the company has not yet formed a complete product line, and many products are still in the process of research and development, and face international advanced. There is uncertainty in the competition of enterprises, the marketization process of future products and the realization of benefits.
Use of company fundraising
As China’s population ages, the number of patients with aortic and peripheral vascular disease in China will continue to grow. According to the relevant research report of Frost & Sullivan, it is estimated that by 2022, China’s aortic interventional medical device market will reach 1.95 billion yuan, and the compound annual growth rate from 2017 to 2022 will be 13.6%; it is expected that by 2022, China’s peripheral vascular interventional medical device market reached 7.12 billion yuan, and the compound annual growth rate from 2017 to 2022 was 18.8%, which continued to maintain relatively high growth.
Based on the company’s business development needs and current risks, the company plans to raise 651,109,100 yuan, except for 100 million yuan to supplement working capital, the rest of the funds will be used for aortic and peripheral vascular interventional medical device industry Projects, aortic and peripheral vascular interventional medical device research and development projects, marketing networks and information construction projects. Further improve the company’s product line, increase production capacity and enhance competitiveness.
Financing purposes
Other companies on the track
At present, China’s aortic and peripheral vascular interventional medical device industry is still in a high-speed development stage, but domestic aortic and peripheral vascular interventional medical device enterprises started late, most domestic production enterprises are small in scale, and their research and development strength and financial strength are both It is difficult to form a full competition with the world’s leading companies. Xinmai Medical can refer to Xianjian Technology in domestic benchmarking companies; foreign medical device companies represented by Medtronic, Gore, Cook Medical in foreign countries The relatively complete product line, leading technology and strong research and development capabilities have a high share in the domestic aortic and peripheral vascular intervention medical device market.