Neurovascular Leader HeartWay Medical Turns Profitable in 2025 with Nearly 800% Surge in Earnings

From the trend, the company's loss at the end of 2024 has narrowed by 88.3% compared to 2023, to 12 million yuan; in the first half of 2025, it turned losses into profits, with a net profit attributable to shareholders reaching 50.938 million yuan, and the full-year profit forecast was successfully achieved, marking the company's entry into a phase of scaled profitability.

Excluding non-operating impacts such as share-based compensation, the adjusted pre-tax profit for 2025 is approximately RMB 77 million, significantly reversing from the adjusted net loss of RMB 11.5 million in 2024, demonstrating that the profitability of the core business has been largely achieved.

The core driving force behind this performance growth mainly comes from the simultaneous increase in sales across multiple product lines in neuro-intervention.

HeartCare stated that the improvement in this performance was mainly due to the synergistic effect of multi-dimensional business growth and refined cost control. The application of new products and technologies in the field of ischemic stroke, along with a steady increase in the market share of various ischemic stroke products; in the field of hemorrhagic stroke, intracranial stents achieved scaled commercial sales, and the sales of other products also grew simultaneously; coupled with the continuous rise in the sales of interventional access products.

Therefore, the synergy of multiple product lines formed an important basis for the outstanding revenue performance throughout the year.

At the same time, the company's costs and expenses have been effectively controlled, and operational efficiency continues to improve, laying a solid foundation for the enhancement of profitability. Against the backdrop of expanding revenue, the operating leverage effect has become evident, driving improvements and growth on the profit side. Meanwhile, the company is gradually transitioning from a phase dominated by R&D investment and market expansion to one that places greater emphasis on scale efficiency and operational quality—a shift that has already begun to reflect in the financial data.

In fact, the outstanding performance jointly forged by the strategic synergy of the three core product lines in the neurointerventional sector had already shown signs in the performance details of the first half of 2025.

In the field of ischemic stroke, the Captor thrombectomy stent and large-bore aspiration catheters continue to gain momentum as core products. The thrombectomy stent has been upgraded to nine models, while the large-bore aspiration catheter has gained widespread clinical recognition through cascade aspiration technology.

In the first half of 2025, the implant volume of such products increased by 60% year-on-year. The number of hospitals covered by large-bore aspiration catheters surged by 267%, driving the terminal implant revenue for the sector to potentially exceed 650 million yuan for the entire year, with a market share surpassing 10%.

In the field of hemorrhagic stroke, the business has experienced explosive growth. The innovative product "Great Wall" intracranial aneurysm embolization assist stent, approved in October 2024, rapidly penetrated the market. By the first half of 2025, it had added 200 partner hospitals and driven a doubling of coil sales, with segment revenue soaring 563% year-on-year.

With the launch of the flow diverter, the company has become the only enterprise in China with a complete aneurysm treatment solution of "coils + assistive stents + dense mesh stents," significantly strengthening its competitive barriers.

The interventional access product line maintained steady growth, further solidifying the business foundation. The implantation volume of the "MaiHe" Occlusion Hemostasis Device reached nearly 100,000 units in the first half of 2025, representing a year-on-year increase of 28%, with a market share exceeding 20% in the vascular closure field. The company has also partnered with Matrix Medical and will soon launch a new generation of occluders, which is expected to further expand market coverage.

At the same time, the company has promoted the gross margin to rebound to over 68% through production process upgrades and the localization of more than 95% of raw materials, forming a良性循环 of "increased revenue, increased profit, and reduced costs."

If the profitability of the main business solidifies the company's foundation, then the layout of cutting-edge technologies determines the ceiling of its future growth. As the localization of neurointervention in China enters a more challenging phase, technological reserves have become the core for companies to navigate industry cycles. Currently, HeartCare is building a "dual-engine" to drive long-term future growth by leveraging two cutting-edge directions: implantable brain-computer interfaces and self-expanding intracranial drug-eluting stents.

Notably, on the same day as the earnings forecast release, HeartCare also announced that the registration application for its self-developed self-expanding intracranial drug-eluting stent had been accepted by the National Medical Products Administration (NMPA). This product is used to treat intracranial atherosclerotic stenosis, providing support and opening for narrowed and obstructed vessels, and can effectively prevent restenosis within the stent. Currently, there are no similar self-expanding intracranial drug-eluting stent products available globally, and the company's R&D progress is at the industry forefront.

Overall, this earnings forecast indicates that after two years of steadfast transformation, the company has made a strategic leap from "burning money for market share" to "market share for profit." So, can this "growth miracle" in the neurointervention field continue in the future? Let's wait and see.

Warm reminder: This article does not constitute any investment advice.