Guotai Haitong: Initiates "buy" rating on ZYLOXTB (02190) with a target price of 36.4 Hong Kong dollars.

Guotai Haitong released a research report stating that it is covering ZYLOXTB (02190) for the first time, giving it a "hold" rating. It predicts earnings per share (EPS) for 2025-2027 to be 0.70/0.89/1.14 yuan, based on comparable companies. Considering the company's well-established product layout and fast-growing performance, a 48XPE is given for the company in 2025, corresponding to a target price of 33.5 yuan/36.4 Hong Kong dollars (exchange rate of 1 Hong Kong dollar = 0.92 RMB). The main points of Guotai Haitong's analysis are as follows: Neurovascular and peripheral interventions driving growth, platform-based deep layout Founded in 2012, ZYLOXTB focuses on neurovascular and peripheral vascular intervention medical devices, establishing a comprehensive product pipeline with 73 products and pipeline products as of August 2025, with 51 products approved for marketing by NMPA and 8 products CE certified in the EU. Through a deep platform-based layout, the company effectively seizes the opportunity of centralized procurement for rapid performance growth. Outstanding commercialization capability, gradual implementation of centralized procurement driving domestic market expansion Since the launch of a major product at the end of 2020, the company has established an extensive distribution network covering over 3000 hospitals in less than five years. With the gradual expansion of market access for company products, the domestic products are accelerating in volume after centralized procurement, leading to rapid growth in sales of neurovascular and peripheral vascular intervention products. In the first half of 2025, sales revenue of neurovascular intervention products increased by 25.0% year-on-year and sales revenue of peripheral vascular intervention products increased by 46.2% year-on-year. Continued overseas expansion, laying a long-term foundation for international market growth In the first half of 2025, the company's international business grew by 36.9%, mainly from Europe and Asia. Currently, the company's peripheral and neuro products cover seven of the world's top ten markets. As of the first half of 2025, the company has sold 22 products in a total of 27 overseas countries/regions, continuing to deepen its presence in the European market, further penetrating markets such as France, Germany, and Italy; exploring emerging markets such as Brazil, India, and South Africa, and achieving rapid growth. The company has established strategic partnerships with over 60 local partners, with channels covering 52 countries and regions globally.