CICC: Maintains PEIJIA-B (09996) outperform industry rating with a target price of HK$10.

Zhongjin released a research report stating that it maintains its outperform industry rating on PEIJIA-B (09996) and the target price of 10 Hong Kong dollars based on the DCF model (WACC 8.1%, perpetual growth rate 1.3%), representing a 63% upside potential. The company announced its performance for 2025, with revenue of 713 million yuan, a year-on-year increase of 15.8%. Due to the impact of nerve intervention group procurement, the annual gross profit margin was 68.2%, and the operating cash flow of core business has turned positive to 69.10 million yuan for the first time, with the banks first introduction of a 27-year net profit forecast for the shareholders of 60.94 million yuan. The report mentioned that the company's revenue from valve business in 2025 was 290 million yuan, an increase of 11.6% year-on-year, achieving positive contribution from the valve business for the first time. The annual TAVR terminal implantation volume was approximately 3,900 units, a significant increase of 14.4% year-on-year, significantly outperforming the industry; with coverage in over 780 hospitals (an increase of 130 hospitals). The bank expects that the national procurement of TAVR will drive more provincial and municipal medical insurance coverage and market expansion. In terms of pipelines, in December 2025, TaurusTrio was approved and listed, completing the AR adaptation certificate. The third-generation long-term heart valve TaurusNXT has been accepted by NMPA in December 2025, GeminiOne TEER has submitted registration applications in China and is simultaneously progressing the EU MDR CE application, and HighLife TMVR clinical registration continues to advance. Research on advanced technologies of 3 subsidiary companies (Shockwave System, ReachTact TAVR Surgery Siasun Robot&Automation, MonarQ TTVR) is ongoing, with some of them expected to receive external financing in 2026. The revenues of the nerve intervention business in 2025 were 423 million yuan, an increase of 18.9% year-on-year, with a branch profit of 97 million yuan, an increase of 86.6% year-on-year, and the branch profit margin increased by 8.3 percentage points to 23.0%. Under the background of group procurement, income expansion and profit elasticity were released synchronously. The proportions of revenue from pathways, bleeding, and ischemia were 38.1%, 31.1%, and 30.8% respectively. Core products such as DCwire micro guidewire, Fastunnel delivery balloon dilatation catheter, Syphonet retrieval stent, Tethys AS suction catheter continued to increase, and the exclusively represented YonFlow dense mesh stent has shown significant increase in contribution since its commercialization in June 2025. More products, such as the assistive aneurysm stent, are under development. In terms of internationalization, DCwire obtained FDA 510(k) approval in March 2026, becoming the company's first neurointervention product to obtain regulatory approval in the United States, marking the first step in the internationalization of neurointervention.