Healthcare: Global leading medical device maker buy rating

  2021-07-31

Independent innovation technology leading the world  

Healthtech, Inc. is a developer, manufacturer and marketer of advanced minimally invasive medical devices for cardiovascular and peripheral vascular diseases and disorders.  The company has developed the second and third generation of plugs through the independent development of Nitinol alloy wire frame ceramic technology coating to strengthen the biological compatibility.  On June 24, 2011, he demonstrated three operations at the CSI show in Germany, all of which were successful, surpassing AGA, which maintained its monopoly in technology.  At present, the company is the second largest supplier of congenital heart defect occluder in the world.  At present, Healthtech leads the global sales of heart occluder by 19%.  

 

Highly effective research and development platform  

 

The company develops innovative products based on the progress of intellectual property rights. To this end, the company works with clinicians in leading European medical technology countries to obtain first-hand clinical information through a series of clinical studies, so that the company's future research will be more targeted and clinically practical.  Wide market space: every year, about 1% of infants are born with congenital heart disease. Due to various factors such as technology and economy, children with congenital heart disease cannot be treated. In the European Union, only 56.6% of children with developed medical treatment receive percutaneous intervention.  We expect that with the increasing support from governments and charitable organizations, the increasing technical level of doctors and the expanding sales network, the company's sales performance will continue to maintain high growth in the future.  

 

Broad market space  

 

Every year, about 1% of infants are born with congenital heart disease. Due to various factors such as technology and economy, children with congenital heart disease cannot be treated. In the European Union, only 56.6% of children with advanced medical treatment receive percutaneous intervention.  We expect that with the increasing support from governments and charitable organizations, the increasing technical level of doctors and the expanding sales network, the company's sales performance will continue to maintain high growth in the future.  High gross margins are expected to be maintained:  Due to congenital heart disease in China belong to major disease diseases, national health care give full reimbursement policies, closure of congenital heart disease by national medical care price regulation factors is rather large, but the first health science and technology through continuous process improvement, the doctor the improvement of surgical success rate and foreign closure sale price increase, we expect the future to health science and technology will still maintain a high gross profit margin.  

 

Performance will improve significantly in 2012  

 

On the one hand, the company was listed on the Hong Kong Start-up edition in November 2011, and the listing fee accounted for 8% of the sales revenue and 53% of the net profit.  On the other hand, the elimination of the series A preferred stock, which has been automatically converted into common stock, and the changing fair value expense on redeeable convertible preferred stock, which accounted for 23% of sales revenue in 2010, will significantly improve the company's financial position in 2012.  

 

Investment advice  

 

We use the P/E relative valuation method to evaluate advanced health technology.  Based on the industry average valuation factor, the company is one of the few companies with independent intellectual property rights in China, and the forecast company's net profit cagR of 78% from 2011 to 2013, we give it a 12-month target price of HK $3.3.  The price targets are 74, 30, 23 times 2011-2013 earnings.  PEG values were 0.95, 0.38 and 0.29.