SDIC Securities initiated coverage on ACOTEC-B (06669) with a "Buy" rating and a target price of HK$15, citing the company's core competitive edge in "intervention without implantation" through innovative products like drug-coated balloons (DCBs) and diversified technology platforms.

With potential easing in China's centralized procurement policies, ACOTEC-B is addressing challenges via new product launches—such as vertebral artery and coronary DCBs—and steady growth in its venous product line. The company's deep collaboration with Boston Scientific further accelerates its overseas expansion, with products already approved in the U.S. and clinical trials underway.

Key highlights from SDIC Securities' report include: 1. **Core Competitiveness in "Intervention Without Implantation"** ACOTEC-B specializes in removing medical devices post-treatment, avoiding permanent implants and related complications while preserving future treatment options. Its multi-technology platforms—drug coating, radiofrequency ablation, aspiration, and materials—enhance innovation while reducing production costs.

2. **Potential Easing of Domestic Procurement Policies & New Product Launches** Following the release of China's draft centralized procurement policy for drug-coated balloons and urological devices on October 10, 2025, ACOTEC-B's peripheral DCBs were included. The rules appear less stringent than previous iterations. Meanwhile, newly approved vertebral and coronary DCBs are expected to offset procurement-related growth pressures. The venous product line, including radiofrequency ablation and thrombus aspiration systems, also contributes to stable growth.

3. **Global Expansion with Boston Scientific** ACOTEC-B's strategic partnership with Boston Scientific offers long-term synergies. Its venous radiofrequency ablation system is already U.S.-approved, and a below-the-knee DCB is undergoing clinical trials, signaling accelerated internationalization.

**Risks**: Domestic procurement policy uncertainties, slower-than-expected overseas commercialization, clinical trial failures, tariff risks, and deviations from financial assumptions.