Investment Rating - The report assigns a "Buy" rating to the company, indicating an expected stock price increase of over 15% within the next six months [5]. Core Views - The report highlights the strategic restructuring of major shareholders, with the exit of the previous largest shareholder, Otsuka Medical, and the entry of state-owned investors, which is expected to enhance business expansion and governance [1]. - The proposed merger of the CRM business with another listed company aims to create a comprehensive cardiac product platform, enhancing international marketing channels and synergy [2]. - The company is on track to meet its profit commitments for the first half of 2025, with expectations for continued improvement in profitability in the second half [2]. Financial Summary - Revenue projections for 2025-2027 are estimated at $1.193 billion, $1.393 billion, and $1.595 billion, respectively, with a net profit forecast of -$47.5 million, $82.62 million, and $158.87 million [3][10]. - The company is expected to achieve a significant turnaround in profitability, with a projected net profit margin of 5.9% by 2026 and 10.0% by 2027 [10]. - The report outlines a gradual improvement in earnings per share (EPS), moving from -0.12 in 2024 to 0.09 in 2027 [10]. Market Data - As of July 28, 2025, the closing price of the stock was HKD 11.58, with a market capitalization of approximately HKD 21.43 billion [5]. - The stock has shown strong performance with absolute returns of 34% over one month, 72% over three months, and 120% over twelve months [7].

Group 1 - The strategic acquisition of shares in MicroPort Medical by the Shanghai Biomedical M&A Fund signifies the fund's role in empowering local biopharmaceutical "chain leader" enterprises for stable development and value reconstruction [1][2] - MicroPort Medical is recognized as a leading innovative high-end medical device company in China, playing a crucial role in the global high-end medical device industry chain [1][3] - The transaction aims to provide critical support to domestic "chain leader" enterprises, ensuring the stability and development of their core assets [1][2] Group 2 - The M&A Fund will leverage its state-owned background and industry resources to support MicroPort Medical's core business expansion and potential strategic acquisitions [1][2] - MicroPort Medical has successfully nurtured multiple listed companies and specialized enterprises, forming a unique "MicroPort system" ecosystem [2] - The involvement of the M&A Fund is expected to enhance the competitive advantage of MicroPort Medical and strengthen the overall industrial ecosystem [2] Group 3 - MicroPort Medical, established in 1998, has expanded its business into various fields, including cardiovascular intervention, orthopedics, and surgical robots, with operations in over 20,000 hospitals across 100 countries by the end of 2024 [3] - The company has cultivated six publicly listed companies and numerous specialized enterprises, representing a significant force in Shanghai's technological innovation and industrial transformation [3] Group 4 - Shanghai Shihua Capital, as an active fund management platform under the Shihua Group, focuses on investment opportunities in strategic emerging industries such as biopharmaceuticals and green environmental protection [4] - The fund aims to support national strategies and the construction of biopharmaceutical hubs through a multi-currency and multi-stage fund matrix [4]

Core Viewpoint - The recent share transfer involving MicroPort Medical (00853.HK) signals a strategic restructuring and return to core operations after nearly a decade of extensive expansion and diversification in the medical device industry [3][4]. Shareholder Changes - The share transfer involves Otsuka Medical relinquishing 7.3% of its shares to Shanghai Biomedicine M&A Fund, managed by Shanghai Shanshi Capital, while the founding team and management increase their stake by an equivalent amount and additionally subscribe for 1.1% [4][5]. - This transaction, estimated at around HKD 3 billion based on the closing price on the announcement date, marks Otsuka Medical's exit from the controlling shareholder position, which has been in place since 2010 [4]. Strategic Implications - The entry of a state-owned strategic investor is seen as a stabilizing force for MicroPort, providing an opportunity to streamline operations and enhance collaboration across its diverse business segments [3][4][16]. - The management's collective increase in shareholding reinforces internal governance and strategic continuity, laying a foundation for better integration and collaboration within the company's multi-segment ecosystem [5]. Business Restructuring - MicroPort has historically maintained a diverse product line across various medical fields, but has faced challenges such as operational inefficiencies and increasing losses, with a reported loss of USD 200 million in 2024 [8][9]. - The company has initiated a "strategic contraction" plan, divesting from non-core subsidiaries and focusing on three main areas: coronary intervention, surgical robotics, and CRM [8][9]. Product Line Overview - The coronary intervention segment, previously a major revenue driver, is facing profit margin pressures due to national procurement policies and price reductions [9][10]. - The surgical robotics division, particularly the Tumi® laparoscopic surgical robot, has shown rapid revenue growth and reduced losses following its commercialization [11][14]. - The CRM business is undergoing a potential strategic restructuring to merge with MicroPort Heart's structural heart disease operations, aiming to create a comprehensive product platform [15]. Future Outlook - The partnership with a stable, industry-focused investor like Shanghai Shanshi Capital is expected to provide MicroPort with necessary resources and support for optimizing supply chains and enhancing high-end manufacturing capabilities [16]. - The company's ability to transition from a fragmented structure to a cohesive growth model will depend on effective internal governance and the realization of product value [17][18].

Summary of Key Points from the Medical Device Industry Conference Call Industry Overview - The medical device industry is benefiting from policy support such as procurement optimization, innovation encouragement from health insurance, and accelerated review processes by the National Medical Products Administration, which is expected to restore sector valuations and attract more investments, particularly in companies that have not participated in procurement or benefit from it, such as Xinmai Medical and Nanwei Medical [1][4] Core Insights and Arguments - The medical device sector is anticipated to reach an inflection point in Q3 2025, with leading companies like United Imaging, Mindray, Kaili, and Aohua beginning to show performance improvements. United Imaging is expected to achieve over 50% revenue growth in the second half of the year, although some companies are still in a destocking phase, indicating a clear overall recovery trend [1][5] - The high-value consumables segment's long-term outlook depends on the clearance of procurement processes. Companies like Chunli Medical have cleared procurement, while others like Huitai Medical, Guichuang Tongqiao, and Aibao Medical are benefiting from accelerated procurement entry. Companies such as Xinmai Medical, Nanwei Medical, and Anjies are also noteworthy [1][6][7] - Internationalization capabilities are crucial for the medical device industry. Companies like United Imaging and Mindray have validated their internationalization capabilities, with United Imaging expected to see over 50% revenue growth in the second half of the year, highlighting the vast overseas market potential [1][8] Performance and Future Expectations - The medical device sector is currently experiencing a recovery phase following improved bidding conditions in Q4 2024. Companies like United Imaging, Mindray, Kaili, and Aohua are beginning to show performance improvements, with United Imaging expected to achieve double-digit revenue growth in Q2 and over 50% growth in the second half of the year [1][5] - The IVD (in vitro diagnostics) segment is optimistic about the overseas growth potential of Huayao's new industry, with overseas revenue accounting for 40%. However, domestic policies may impact volume and pricing in the short term, while the long-term international outlook remains positive [3][11] Investment Opportunities - Companies to watch in the high-value consumables segment include Xinmai Medical and Chunli Medical, with the latter's overseas revenue expected to exceed 50% in the future. Additionally, MicroPort is recommended due to its recent governance improvements and investment potential [1][10] - In the low-value consumables segment, Yingke Medical is highlighted for its potential explosive growth in U.S. orders following production in Southeast Asia, with overseas revenue accounting for approximately 85% [3][12] - The investment selection for different segments should focus on internationalization progress and performance recovery in the medical device and equipment sector, while high-value consumables should consider procurement recovery, valuation restoration, new product launches, and internationalization progress [1][13] Company-Specific Insights - MicroPort is expected to gradually turn profitable from 2024 to 2026, with projected profits reaching 630 million RMB in 2026. The company is also seeing an increase in state-owned capital share to 15.5%, which is expected to enhance its strategic support and industrial synergy [1][14][16] - New businesses within MicroPort, such as robotics and new product lines, are maintaining high growth rates, contributing significantly to overall performance [1][17] - MicroPort's self-owned products are expected to see a revenue growth rate of over 70% in 2025, establishing a third growth curve for the company [1][18] Valuation and Market Outlook - The company anticipates profits of over 1.4 billion, 1.8 billion, and around 2.1 billion RMB from 2025 to 2027, reflecting an optimistic outlook for profitability in the coming years [1][24] - The company's price-to-earnings (PE) ratio is expected to decline gradually, indicating a more attractive valuation as profitability improves [1][25] Conclusion - The medical device industry is poised for recovery and growth, driven by supportive policies and internationalization efforts. Companies like United Imaging, Mindray, and Yingke Medical are positioned well for future performance, while MicroPort's strategic developments and new business growth present significant investment opportunities [1][26][27]

7月28日上榜港股通成交活跃榜个股中，微创医疗为近一个月首次上榜。 证券时报•数据宝统计显示，7月28日港股通（包括沪市港股通及深市港股通）成交活跃股合计成交 332.01亿港元，占当日港股通成交金额的24.88%，净买入金额32.47亿港元。 7月28日港股通成交活跃股榜单 上榜的成交活跃股中，阿里巴巴-W成交额为47.61亿港元，成交金额居首；其次是中芯国际、中国人 寿，成交金额分别为39.52亿港元、38.95亿港元。 | 证券代码 | 证券简称 | 成交金额 | 净买入金额 | 近一个月上榜次数 | 最新收盘价 | 日涨跌幅（%） | | --- | --- | --- | --- | --- | --- | --- | | | | （亿港元） | （亿港元） | | （港元） | | | 00700 | 腾讯控股 | 38.39 | 5.98 | 20 | 555.500 | 0.91 | | 00981 | 中芯国际 | 39.52 | 1.55 | 20 | 53.100 | 0.66 | | 01788 | 国泰君安国际 | 35.70 | 0.53 | 20 | 6.720 | 9.45 | ...

Core Viewpoint - The entry of Shanghai state-owned enterprise Shanshi Capital as a strategic shareholder in MicroPort Medical is expected to enhance the company's core business development and governance, while addressing past controversies related to shareholder interests and capital operations [1][2]. Group 1: Strategic Investment and Governance - Shanshi Capital's investment is anticipated to provide low-cost funding support and improve the company's financing capabilities due to its state-owned background [2]. - The involvement of state capital is expected to create a balance of power within the board, allowing for direct participation in strategic decision-making and enhancing alignment of interests [2]. - The company aims to focus resources on core business areas, potentially reducing governance disputes arising from previous spin-off attempts [2]. Group 2: Business Expansion and Financial Performance - MicroPort Medical has expanded its business into various fields, including cardiovascular intervention and orthopedic medical devices, since its listing in September 2010 [2]. - Despite revenue growth from 4.233 billion yuan to 6.734 billion yuan between 2020 and 2023, the company has faced significant losses, with a net loss of 3.383 billion yuan in 2023 [4]. - The company has been under pressure to improve its financial situation, leading to a focus on reducing research and development expenses and optimizing operations [8][11]. Group 3: Debt and Financial Strategy - The company's current liabilities surged from over 3 billion yuan to 9.6 billion yuan from 2020 to 2023, indicating increased short-term debt risks [6]. - In April 2024, MicroPort Medical secured a loan of up to 200 million USD, with a portion tied to performance agreements that limit future losses [7][8]. - The company has initiated a shift from research-focused strategies to a more marketing-oriented approach, significantly reducing operational costs and employee numbers [11]. Group 4: Future Outlook and Challenges - For the first half of 2025, MicroPort Medical anticipates a revenue decline of no more than 4%, with expected losses of up to 110 million USD, which aligns with previous performance agreements [14]. - The effectiveness of state capital's involvement in improving the company's performance and governance remains uncertain [14].

Market Overview - On July 28, the Hang Seng Index rose by 0.68%, closing at 25,562.13 points, with a total net inflow of southbound funds through the Stock Connect amounting to HKD 9.253 billion [1] Trading Activity - The total trading volume for the Stock Connect on July 28 was HKD 133.454 billion, with a net buy of HKD 9.253 billion [1] - The Shanghai Stock Connect recorded a trading volume of HKD 85.075 billion and a net buy of HKD 6.338 billion, while the Shenzhen Stock Connect had a trading volume of HKD 48.378 billion and a net buy of HKD 2.915 billion [1] Active Stocks - In the Shanghai Stock Connect, the top traded stock was Alibaba-W with a transaction amount of HKD 3.322 billion, followed by China Life and Tencent Holdings with transaction amounts of HKD 2.878 billion and HKD 2.590 billion, respectively [1] - China Life had the highest net buy amount of HKD 1.007 billion, with its stock price increasing by 1.76%. Conversely, China Ping An had the highest net sell amount of HKD 214 million, with its stock price rising by 3.49% [1] Shenzhen Stock Connect Highlights - In the Shenzhen Stock Connect, the top traded stock was SMIC with a transaction amount of HKD 1.615 billion, followed by Alibaba-W and Xiaomi Group with transaction amounts of HKD 1.438 billion and HKD 1.416 billion, respectively [2] - China Ping An recorded the highest net buy amount of HKD 462 million, with its stock price increasing by 3.49%. Meituan had the highest net sell amount of HKD 281 million, with its stock price declining by 0.54% [2] Summary of Active Stocks - A summary table of the top active stocks includes: - Alibaba-W: Transaction amount HKD 3.322 billion, net buy HKD 797 million, daily change +2.20% [2] - China Life: Transaction amount HKD 2.878 billion, net buy HKD 1.007 billion, daily change +1.76% [2] - Tencent Holdings: Transaction amount HKD 2.590 billion, net buy HKD 749 million, daily change +0.91% [2] - SMIC: Transaction amount HKD 1.615 billion, net buy HKD 453 million, daily change +0.66% [2] - China Ping An: Transaction amount HKD 1.534 billion, net sell HKD 214 million, daily change +3.49% [2]

Core Insights - On July 28, 2025, Alibaba-W (09988), China Life (02628), and Tencent Holdings (00700) were the top three companies by trading volume in the southbound trading of the Stock Connect, with trading amounts of 3.322 billion, 2.878 billion, and 2.590 billion respectively [1] - In the Shenzhen-Hong Kong Stock Connect, SMIC (00981), Alibaba-W (09988), and Xiaomi Group-W (01810) led the trading volume, with amounts of 1.615 billion, 1.438 billion, and 1.416 billion respectively [1] Southbound Trading - Hong Kong Stock Connect - Top active companies by trading amount: - Alibaba-W (09988): 3.322 billion, net inflow of 79.7145 million [2] - China Life (02628): 2.878 billion, net inflow of 1.007 billion [2] - Tencent Holdings (00700): 2.590 billion, net inflow of 74.9 million [2] - Other notable companies include: - Guotai Junan International (01788): 2.588 billion, net outflow of 37.9091 million [2] - SMIC (00981): 2.337 billion, net inflow of 1.1 billion [2] Southbound Trading - Shenzhen-Hong Kong Stock Connect - Top active companies by trading amount: - SMIC (00981): 1.615 billion, net inflow of 45.3191 million [2] - Alibaba-W (09988): 1.438 billion, net inflow of 358 million [2] - Xiaomi Group-W (01810): 1.416 billion, net outflow of 187 million [2] - Other notable companies include: - Tencent Holdings (00700): 1.249 billion, net outflow of 152 million [2] - Meituan-W (03690): 1.186 billion, net outflow of 281 million [2]

7月28日港股市场，北水成交净买入92.53亿港元，其中港股通(沪)成交净买入63.38亿港元，港股通(深) 成交净买入29.15亿港元。 北水净买入最多的个股是中国人寿(02628)、建设银行(00939)、腾讯(00700)。 | 股票名称 | 买入额 | 卖出额 | 买卖总额 | | --- | --- | --- | --- | | | | | 净流入 | | 阿里巴巴-W | 17.01亿 | 16.21亿 | 33.22 乙 | | HK 09988 | | | +7971.45万 | | 中国人寿 | 19.42 Z | 9.36亿 | 28.78亿 | | HK 02628 | | | +10.07 Z | | 腾讯控股 | 16.69 亿 | 9.20亿 | 25.90亿 | | HK 00700 | | | +7.49 Z | | 国泰君安 ... | 12.75 乙 | 13.13亿 | 25.88亿 | | HK 01788 | | | -3790.91万 | | 中芯国际 | 12.23 乙 | 11.14 乙 | 23.37亿 | | HK 00981 | | | +1.10 Z ...

Group 1 - Otsuka Medical Devices Co., Ltd. has agreed to sell approximately 291 million shares of MicroPort Medical to various buyers, including Shanghai Shenshi Capital and We'Tron Capital Limited, which represents 15.7% of MicroPort's total share capital [1] - Following the announcement, MicroPort's stock price surged, opening up 14.99% and closing with a 4.75% increase, giving it a market capitalization of approximately HKD 21.2 billion [1] - This transaction will reduce Otsuka's stake in MicroPort from 20.7% to 5%, marking the first time since 2004 that Otsuka will not be the largest shareholder [1] Group 2 - Otsuka's initial investment in MicroPort dates back to 2004 when it invested USD 18 million for a 40% stake, which has since appreciated significantly, yielding a return of nearly 31 times [2] - The current shareholder structure of MicroPort includes We'Tron Capital Limited and the Jinshan Foundation as the second and third largest shareholders, holding a combined 37.5% [2] - The fourth and fifth largest shareholders are Shanghai ZJ Hi-Tech Investment Corporation and Shanghai Zhangjiang Health Products Holdings, with a combined stake of 16.0% [2] Group 3 - The buyer, Shanghai Shenshi Capital, is a fund management platform fully controlled by the Shanghai State-owned Assets Supervision and Administration Commission, indicating renewed interest in the biopharmaceutical sector [3] - MicroPort has faced financial challenges, reporting net losses over the past five years, with losses of CNY 1.248 billion, 1.763 billion, 3.04 billion, 3.383 billion, and 1.539 billion from 2020 to 2024 [3] - Despite the losses, MicroPort's revenue has shown consistent growth, increasing from CNY 4.233 billion in 2020 to CNY 7.412 billion in 2024 [3]