Shanghai Securities: The prospects of domestic PFA are promising, and the rating for the electrocardiograph-related medical consumables sector is "buy".

Shaanxi Securities issued a research report stating that the domestic electrophysiology field is currently in a period of rapid growth, with low product penetration rates and a large number of long-term unmet needs in the market, indicating high overall industry growth potential. Additionally, due to high technological barriers, the three-dimensional electrophysiology market is currently dominated by imported brands. With the gradual approval and market launch of domestic three-dimensional electrophysiology products, the continuous enrichment of supporting product portfolios, and the opportunity presented by the national centralized volume procurement policy, it is expected to further accelerate the pace of domestic electrophysiology products entering hospitals and speed up their commercialization. Currently, the radiofrequency ablation market is still dominated by imported brands, but PFA presents an opportunity for domestic brands to overtake on the bend. The penetration rate of PFA is expected to increase, and it is anticipated that leading domestic enterprises will achieve a market share surpassing their competitors during the process. In conclusion, the medical consumables sector related to electrophysiology is given a "hold" rating, and it is believed that the performance of the electrophysiology sector under the dual forces of supply and demand will continue to grow by 2026. Key points from Shaanxi Securities are as follows: 1. There is a strong practical need for cardiac electrophysiology technology. 2. Electrophysiology technology is constantly iterating, with significant clinical benefits. 3. Domestic PFA technology has the opportunity to overtake in the market. Risks to consider include: (1) risks of R&D progress falling short of expectations for new products, (2) the risk of terminal price reduction under further pressure from medical insurance payments, and (3) the risk of increased market competition.