During the first half of this year, Hong Kong-listed pharmaceutical and medical device stocks underwent a phase of valuation digestion alongside an industrial logic reshuffle, marked by notable structural divergence. Market pricing standards for leading players have further shifted toward innovation capability, global potential, earnings certainty, and business model resilience. This is precisely why, following the release of the 26H1 financial report, the investment certainty of PEIJIA-B (09996) has been substantially strengthened.

According to insights from Zhitong Finance, on August 21, PEIJIA-B disclosed its interim results for 2026. The report showed total revenue of RMB 425 million for the period, representing a year-on-year increase of 20.1%. Driven by robust core revenue growth and refined management practices, the company's earnings quality has continued to improve: gross profit reached RMB 290 million, up 17.1% year-on-year; both EBITDA and pre-tax profit turned positive; and the net loss for the period narrowed sharply by 87.4% year-on-year to approximately RMB 8.99 million, signaling imminent profitability. Concurrently, net cash generated from operating activities reached RMB 49.41 million, surging 1394.5% year-on-year, further validating the company's ability to monetize its innovative achievements.

As core products continue to ramp up, the company's commercialized innovations are increasingly translating into profit and cash flow. TAVR products sustained strong growth, while AR product performance notably exceeded expectations. In the first half, PEIJIA-B leveraged superior sales and R&D efficiency to further consolidate its leading position as a top-tier brand in China's valve interventional therapy sector. During the reporting period, the transcatheter valve treatment business generated revenue of RMB 207 million, up 28.3% year-on-year. Notably, segment losses narrowed by 87.2% year-on-year to RMB 9.72 million, positioning PEIJIA-B to potentially become the first domestic valve company to break free from sustained losses.

Behind these impressive financial figures, driven by the scaling of dual-indication products for AS and AR, the company's TAVR products expanded coverage to approximately 70 new hospitals during the period. As of June 30, 2026, cumulative coverage exceeded 850 hospitals in the Greater China region, with approximately 2,830 TAVR implants completed, representing a 36.5% year-on-year increase and further widening the company's competitive lead. Among these, the aortic regurgitation (AR) business, exemplified by the TaurusTrio® product, emerged as a standout highlight in this report. Leveraging differentiated product design, safety profiles, and standardized procedural techniques, TaurusTrio® rapidly gained clinical acceptance post-launch. During the reporting period, the product essentially completed provincial-level listing across China, with market access steadily advancing. Implantation volumes climbed rapidly month-over-month, accumulating over 660 procedures in the first half; entering the second half, commercialization accelerated further, with July 2026 alone witnessing 330 implants.

From Zhitong Finance's perspective, given the higher pricing of AR regurgitation valve products, PEIJIA-B's incremental AR growth has been notably more pronounced, further validating the robust market demand and the intrinsic value of TaurusTrio® as China's first approved transcatheter aortic regurgitation device featuring integrated positioning keys. It is worth noting that during the interim results conference call on August 24, management raised the full-year implantation guidance for the valve business from the earlier projection of 5,000+ units to 6,000-6,500 units. Specifically, the AR segment is guided to achieve no fewer than 2,500 implants annually, with revenue growth exceeding 30%, underscoring strong confidence in sustained segment expansion.

As the company's long-standing cash cow, the neurointerventional segment continued to serve as a crucial pillar for stable growth. In the first half of 2026, this business generated revenue of RMB 217 million, up 13.3% year-on-year, with segment profit reaching RMB 73.2 million, a substantial 79.0% year-on-year increase, reflecting enhanced profitability alongside steady revenue gains. Management reaffirmed the full-year revenue growth guidance of 15%-20% for this segment, based on confidence in its steady expansion.

Operationally, PEIJIA-B has advanced its product expansion model combining independent innovation with strategic partnerships. On the proprietary products front, the company leveraged innovative clinical procedures to broaden application scenarios, achieving sustained penetration gains for core self-developed products including the Syphonet® thrombectomy stent, Fastunnel® delivery balloon, and DCwire® micro-guidewire, thereby reinforcing its foundational position in access and ischemic stroke therapies. On the strategic partnership front, the exclusively distributed YonFlow® flow diverter stent and Qida® disposable neurovascular sheath achieved rapid commercialization during the period, emerging as new growth drivers. Additionally, the company entered a strategic collaboration with B. Braun to secure exclusive distribution rights for the SeQuent® Please CIS drug-coated intracranial balloon in mainland China. The product is currently under regulatory review and is expected to receive approval within the year, potentially enriching the company's ischemic treatment portfolio and expanding the "intervention without implantation" therapeutic option—an area warranting investor attention for future launch potential.

In summary, during the interim results call, management indicated that the company is positioned to achieve full-year profitability without relying on external BD events. This implies that crossing the breakeven inflection point this year is now a clear expectation. Consequently, the market's valuation framework is expected to transition from a sales-and-expectation-driven PS model to an earnings-and-profit-validated PE model. The resulting expectation gap could serve as a core catalyst for greater upward elasticity in the company's share price over the medium to long term.