MicroPort EP(SH:688351) HTSC·2025-03-28 06:35Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 27.73 [8][9]. Core Views - The company reported a revenue of RMB 413.17 million and a net profit of RMB 52.07 million for 2024, representing year-over-year increases of 25.5% and 815.4% respectively, aligning with performance expectations [1]. - The revenue growth accelerated in Q4 2024, reaching RMB 122 million, a year-over-year increase of 31.3% and a quarter-over-quarter increase of 32.2% [1]. - The company is expected to achieve rapid revenue growth in 2025, driven by the continued expansion of high-end products both domestically and internationally [1]. Revenue Breakdown - Catheter products generated RMB 300 million in revenue, up 36.6% year-over-year, with high-end products performing particularly well [2]. - Equipment products saw revenue of RMB 26.45 million, reflecting a year-over-year increase of 58.7% [2]. - Other products, primarily sheath products, generated RMB 80.79 million, down 3.8% year-over-year, but are expected to recover in 2025 as three-dimensional surgical volumes increase [2]. Geographic Performance - Overseas revenue reached RMB 112 million, a year-over-year increase of 62.9%, accounting for 27.2% of total revenue [3]. - Domestic revenue was RMB 295 million, up 17.3% year-over-year, with over 70,000 three-dimensional surgeries performed across more than 1,100 hospitals [3]. Product Development - The company is progressing with new product development, including PFA products expected to receive domestic approval in the first half of 2025 [4]. - Clinical research for 3D intracardiac ultrasound has commenced, with expected domestic approval in 2026 [4]. Profit Forecast and Valuation - The earnings per share (EPS) forecast for 2025, 2026, and 2027 is RMB 0.15, RMB 0.24, and RMB 0.34 respectively [5]. - The discounted cash flow (DCF) valuation method estimates a target price of RMB 27.73, based on a weighted average cost of capital (WACC) of 7.5% and a perpetual growth rate of 1.7% [5].