Key takeaway The company is a leading domestic player in the cardiovascular precision intervention field. Looking ahead to 2026, in the domestic market, precision PCI products are expected to maintain rapid growth driven by factors such as domestic substitution, rising industry penetration, and higher recommendation levels in clinical guideline standards. Peripheral intervention diagnosis and treatment products approved in recent years are expected to contribute incremental revenue this year. PFA products are likely to be approved within the year, helping the company enter the high-growth electrophysiology atrial fibrillation diagnosis and treatment field. The company's overseas business is expected to continue its rapid growth from a low base. As international market recognition of the company's products gradually increases, overseas markets are likely to become a new growth driver for the precision PCI industry. In the medium to long term, the company has a clear pipeline for innovative products in peripheral, electrophysiology, and other fields. PFA products are about to launch, which is expected to open up new growth opportunities.

Event

Recently, the company released its 2025 annual report and 2026 first quarter report.

According to the announcement, in 2025 the company achieved revenue of RMB542mn (+71.22% YoY). Net profit attributable to shareholders of the parent company and recurring net profit attributable to shareholders of the parent company were RMB80mn and RMB65mn respectively (turning from loss to profit YoY), with EPS of RMB0.22/share;

In 1Q26 the company achieved revenue of RMB185mn (+45.36% YoY), with net profit attributable to shareholders of the parent company of RMB46mn (+121.83% YoY +121.83% ), and recurring net profit attributable to shareholders of the parent company of RMB43mn (+161.54% YoY ) . EPS was RMB0.11/share.

Quick Take

First annual profit achieved in 2025 with high growth in both domestic and international business

The company achieved full-year 2025 revenue of RMB542mn, up +71.22% YoY; net profit attributable to shareholders of the parent company was RMB80mn, compared to -RMB44mn in the same period last year, turning from loss to profit; recurring net profit attributable to shareholders of the parent company was RMB65mn, compared to -RMB63mn achieving a turnaround to profitability. The company's rapid performance growth was primarily driven by its core products gaining sustained clinical recognition in the precision PCI field, with hospital placements and market share rising quickly, while new product pipelines added synergistic momentum and operating efficiency improved significantly. Based on calculations, 4Q25 revenue reached RMB135mn, up 70.81% YoY; net profit attributable to shareholders of the parent company was RMB1.67mn, up 113.25% YoY; and the net loss attributable to shareholders of the parent company after deducting non-recurring items was RMB2.1mn, narrowing by 89.61% YoY.

By product, precision PCI products (primarily IVUS and FFR), as the company's core business, generated revenue of RMB481mn , up 63.37% YoY, with market penetration and share continuing to rise. Complex PCI products (microcatheters, extension catheters, intelligent digital pressure pumps, etc.), leveraging their differentiated performance and strong reputation, generated revenue of RMB60mn , with a YoY growth rate as high as 172.77% , becoming an important growth driver for the company. As of end-2025, the company's precision PCI products had entered over 1,800 hospitals in China, and complex PCI products had entered over 600 hospitals, with market coverage continuing to deepen.

By region, the domestic market generated revenue of RMB450mn , up 62.06% YoY, accounting for 83.11% of total revenue. Leveraging its superior product performance, the company's IVUS products achieved volume-driven growth amid provincial alliance centralized procurement, further accelerating import substitution. Revenue from overseas markets reached RMB91mn, a significant YoY increase of 135.45%, with its revenue share rising to 16.89%. The company's products have entered over 60 countries and regions worldwide, including the United Kingdom, Germany, and Singapore, and have completed the first commercial implantation of IVUS products in developed markets such as Germany, Poland, and the United Kingdom, demonstrating remarkable results from its internationalization strategy.

1Q25 performance sustains high growth, driven by precision PCI and overseas business. The company achieved revenue of RMB185mn in 1Q26, up 45.36% YoY. Net profit attributable to shareholders of the parent company was RMB46mn, up 121.83% YoY, and recurring net profit attributable to shareholders of the parent company was RMB43mn, up 161.54% YoY. The company's performance continued its high-growth trajectory, primarily driven by the sustained expansion in sales of precision PCI products (IVUS and FFR), alongside synergistic effects from the product portfolio and deepening channel coverage. Profit growth significantly outpaced revenue growth, mainly attributable to improved gross margin from economies of scale and optimized expense ratios, leading to continuously enhanced profitability.

Outlook for 2026: Both domestic and international businesses are expected to maintain rapid growth, with operating leverage continuing to be realized.

Looking ahead to 2026, in the domestic market, the company's IVUS products are expected to maintain rapid growth driven by factors such as domestic substitution, increasing industry penetration, and higher recommendation levels in clinical guideline standards. For FFR products, the application level and fee schedule have been elevated and clarified under the new domestic medical insurance policy, providing clear policy and academic support for hospital adoption and clinical application popularization. Peripheral interventional diagnosis and treatment products approved in recent years are expected to contribute incremental revenue this year. The PFA product is expected to be approved within this year, helping the company enter the high-growth atrial fibrillation diagnosis and treatment field and providing new momentum for long-term sustainable growth. The company's overseas business is expected to continue its rapid growth from a low base. As international market recognition of the company's products gradually increases, overseas markets are likely to become a new growth driver for the precision PCI industry.

Adhering to a clinical demand orientation, multiple products achieve key clinical progress.

The company adheres to a clinical demand-oriented innovative R&D strategy. In 2025, multiple self-developed products were approved for market launch in China, further enriching the product matrix. In the coronary intervention field, a new-generation integrated functional and imaging solution, a new-generation wireless pressure microcatheter, new models of the extension catheter series, and the iFlowX digital pressure pump were approved successively, enhancing the intelligence and convenience of PCI procedures. In the peripheral vascular intervention field, the company's self-developed first domestic peripheral IVUS system was approved for market launch in July 2025, breaking the import monopoly. In the electrophysiology field, the company's pulsed field ablation (PFA) system has been submitted for domestic registration and is under review. Its randomized controlled clinical trial results were published in JACC, a top international cardiovascular journal, demonstrating a clear competitive advantage. It is expected to be approved for market launch in 2026 .

Financial indicators improve, operational efficiency continues to enhance.

The company's profitability improved significantly, with the main business gross margin rising to 69.91% in 2025, an increase of 6.59pcts YoY, mainly benefiting from economies of scale, cost reductions from lean production, and a higher proportion of high-margin products. Expense control was highly effective, with the selling expense ratio and administrative expense ratio decreasing by approximately 9.32pcts and 8.38pcts, respectively, reflecting the continuous improvement in the company's operational efficiency. The company maintained a high level of R&D investment, with total annual R&D expenditure reaching RMB108 million , accounting for 19.97% of re venue, providing ample momentum for long-term development. The company's net operating cash flow reached RMB145 million , a significant YoY increase of , up 386.07% , mainly driven by sales growth, as cash inflows from operating activities continued to expand at a faster pace than cash outflows from operating activities.

The company's 1Q26 gross margin was 71.75% in 2025, an increase of 4.68pcts, mainly benefiting from economies of scale, production process improvements, and a higher proportion of high-margin products. The company maintained sound expense control, with both the selling expense ratio and administrative expense ratio declining YoY, as economies of scale drove continuous improvement in operational efficiency. Committed to innovation-driven development, the company's absolute R&D expense increased 12.51% to to RMB29 million YoY, with R&D expenditure accounting for 15.42% of revenue, remaining at a relatively high level. The company's net operating cash flow reached RMB72 million , a substantial YoY increase of 94.18% , with profitability continuing to improve.

A domestic leader in precision cardiovascular intervention, accelerating innovation and global expansion.

The company is a leading player in China's precision cardiovascular intervention sector. In the near term, the rising penetration of its precision PCI business in the domestic market and rapid expansion in overseas markets are the core drivers of its performance growth. In the medium to long term, the company has a clear pipeline for innovative products in peripheral, electrophysiology, and other fields. PFA products are about to launch, which is expected to open up new growth opportunities. The companyis expected toestablish significant first-mover advantages through its core IVUS+FFR product portfolio,technological barriersand global brand influence, and continue to deliver,accelerating domestic substitution,vast overseas market spaceperformance.

We estimate the company's revenue for 2026-2028 to be RMB749mn, RMB1.011bn and RMB1.353bn, representing YoY growth of 38.08%, 35.12% and 33.80%, with net profit attributable to shareholders of the parent company of RMB113mn, RMB162mn and RMB237mn, representing YoY growth of 41.11%, 43.86% and 46.06%, corresponding to P/E multiples of 180x, 125x and 86x.We initiate coverage with "Buy" rating.