Xinmai Medical (688016) Review of 2019 Third Quarterly Report: Pioneer in Interventional Therapy in the Third Quarter

Xinmai Medical (688016) Review of 2019 Third Quarterly Report: Pioneer in Interventional Therapy in the Third Quarter

Event: The company released the third quarter report of 2019, and realized revenue in 19Q1-3.

4.7 billion, net profit attributable to mothers1.

1.3 billion, net of non-attributed net profit1.

2 billion, an annual increase of 43%, 48% and 43% respectively; achieving EPS 1.

94 yuan; performance slightly exceeded market consensus expectations, in line with our expectations.

  Opinion: The income and profit are accelerating, and the profit level continues to be stable.

In the first half of 19 and the first three quarters, Q3 single-quarter revenue increased by 41.

6%武汉夜网论坛, 43.

2%, 47.

0%, net profit attributable to mothers increased by 40 each year.

5%, 47.

9%, 76.


The company’s main business intervention therapy stent industry has a high degree of prosperity, and its revenue and profits have shown a slight acceleration.

The company’s gross profit margin for the first three quarters of 19 was 79.

2%, basically maintained stable; sales expense ratio increased by 1.

3pp to 14.

4%, mainly due to the expansion of sales scale; R & D expense ratio increased by 1.

8pp to 11.

9%, maintaining strong growth; the increase in revenue was mainly due to the increase in the company’s income from purchasing wealth management projects.

Overall, the company’s profitability remains stable.

  Both thoracic aortic stents and abdominal aortic stents have achieved rapid growth, and new 杭州夜网论坛 products are expected to begin volume.

The aortic interventional stent with a revenue of more than 80% of the company has a broad business space, rich product pipelines, and good performance. It is the domestically produced enterprise with the largest amount of intraoperative aortic surgery.

Both the thoracic aorta and abdominal aortic stent are expected to achieve rapid growth of more than 45% in the first three quarters.

In addition, the company announced that the Minos TM abdominal aorta stent graft and delivery system products have obtained the EU CE certification, and have passed the EU market access conditions. It is expected to effectively expand the company’s overseas product categories.The company was approved for listing in China in January, and it is expected to start volume in 20 years, which will promote the rapid growth of aortic interventional product business.

In addition, the vascular stent is expected to achieve a steady growth of more than 25% in the first three quarters, and the growth momentum continues.

  Profit forecast and estimation: The company is a pioneer in the field of aortic intervention and interventional vascular intervention therapy in China. We maintain a net profit of 19-21 for the year 1.



5 ppm, an annual increase of 45% / 37% / 36% corresponds to an EPS (diluted) of 1.



40 yuan, currently expected to correspond to 19?
The PE of 21 years was 77/57 / 41x respectively. The company is slightly excellent and is in a period of rapid growth.

  Risk reminder: High-value consumables collection and implementation of DRGS and other policies lead to product price reduction risk; R & D progress is less than expected risk; medical accident risk