Core Viewpoint - CICC maintains the profit forecast for MicroPort Medical (00853) for 2025/26 at -0.39/+0.74 billion USD, with an unchanged outperform rating and a target price of 17 HKD, indicating a 40% upside potential from the current price [1] Revenue Performance - The company's revenue for 1H25 was 5.48 billion USD, a year-on-year decrease of 2%, while the net loss attributable to shareholders was 0.47 billion USD, an improvement of 52% compared to the previous year's loss of 0.97 billion USD [1] - Major business segments faced revenue pressure: - Coronary revenue decreased by 2.1%, with domestic revenue stable and balloon and accessory revenues increasing by 38% and 21% respectively; overseas revenue fell by 10% due to Middle East conflicts and channel adjustments - Orthopedic revenue declined by 3.7%, and arrhythmia management revenue decreased by 1.4% - Revenue from large artery and peripheral segments dropped by 9.2%, while neurointervention revenue fell by 6.2% - Structural heart disease revenue increased by 2.7%, surgical robot revenue surged by 77%, and surgical revenue rose by 42.8% - The company's overseas business revenue grew by 57.3%, reaching 0.60 billion USD [2] Loss Reduction - The orthopedic segment's net loss narrowed by 57.9%, with EBITDA increasing by 28.5% year-on-year - The arrhythmia management business achieved positive EBITDA - MicroPort's overall EBITDA rose to 1.28 billion USD, up from 0.59 billion USD in 1H24 [3] Business Restructuring Plans - The company announced plans for a strategic restructuring of its arrhythmia management business, potentially merging it with MicroPort's heart management business - As of 1H25, the company had a share repurchase obligation of 2.54 billion USD related to the arrhythmia management business - The company is also planning to sell several properties and other assets, engaging with multiple potential investors for direct investments in subsidiaries or other assets, which may improve the group's debt and cash flow situation [4]
中金：维持微创医疗跑赢行业评级 目标价17港元