Haitong International has published a research report initiating coverage on SCIENTECH (02291) with an "Outperform" rating. The firm forecasts EPS of RMB 0.89/1.15/1.45 for 2025-2027 respectively. Considering the company's comprehensive product portfolio and strong development of new business segments in recent years, and referencing both PE and PB valuation methods with a conservative approach, the firm sets a target price of RMB 26.62/HK$28.94.
According to the report, in H1 2025, the company achieved operating revenue of RMB 330 million, representing a year-over-year increase of 32.4%, and net profit attributable to shareholders of RMB 182 million, up 29.8% year-over-year.
The company is a leading player in China's congenital heart disease interventional medical device sector. Its traditional business leverages biodegradable technology with steadily improving profitability, while cardiac valve products serve as a second growth curve. The firm believes these two business segments will significantly contribute to the company's profit growth over the next 1-5 years.
As a practitioner of the "intervention without implantation" philosophy, the company's biodegradable occluders have gained widespread acceptance. The firm believes that "biodegradable" technology represents an inevitable trend in structural cardiac intervention occluders, with SCIENTECH successfully advancing the biodegradable transformation of congenital heart disease interventional devices. Biodegradable products reduce the occurrence of long-term complications and offer significant clinical advantages compared to metal occluders. Biodegradable occlusion procedures may lead global innovative healthcare to new heights.
China's cardiac valve intervention surgery penetration rate remains low, presenting significant market potential, with an expected CAGR of 69.8% from 2021-2025. The company's ScienCrown transcatheter aortic valve implantation system, as the world's first self-expanding short valve with balloon-expandable advantages, achieved over RMB 40 million in sales revenue within six months through differentiated positioning. The firm believes that as commercialization deepens, sales growth for this product will further accelerate.