MicroPort EP(SH:688351) HTSC·2025-08-27 05:29Investment Rating - The investment rating for the company is "Buy" with a target price of RMB 31.18 [1][7]. Core Views - The company achieved revenue of RMB 224 million in 1H25, representing a year-on-year increase of 12.8%, and a net profit of RMB 32.67 million, up 92.0% year-on-year, aligning with performance expectations [1]. - The gross margin for 1H25 was 60.1%, an increase of 1.0 percentage points year-on-year, driven by the strong performance of high-end products [1]. - The company is expected to see rapid growth in overall performance in 2025 due to continuous improvement in its product matrix and active overseas sales efforts [1]. Revenue Breakdown - Catheter products generated revenue of RMB 161 million, with high-end catheter products showing rapid growth, completing over 3,000 surgeries in China by 1H25 [2]. - Equipment products contributed RMB 16.19 million, with expectations for positive development in 2025 amid recovering industry demand [2]. - Other products, mainly sheath products, achieved revenue of RMB 45.25 million, expected to grow alongside the overall increase in surgical volumes [2]. Overseas Expansion - Overseas revenue reached RMB 69.47 million, a year-on-year increase of over 40%, accounting for 31% of total revenue [3]. - The company has made significant progress in overseas commercialization, with three-dimensional surgeries implemented in over 20 countries by 1H25 [3]. - Domestic revenue was RMB 154 million, with expectations for growth driven by the release of high-end products [3]. Product Development - The company is making progress in new product development, including PFA products and intracardiac ultrasound, with expectations for domestic approval in 2025 and 2026, respectively [4]. - The RDN product is currently in clinical trials, with anticipated domestic approval in 2026 [4]. Profit Forecast and Valuation - The profit forecast has been adjusted, with expected net profits for 2025-2027 at RMB 84 million, RMB 118 million, and RMB 162 million, respectively, reflecting increases of 18%, 7%, and 1% compared to previous estimates [5]. - Using DCF valuation methods, the target price is set at RMB 31.18, up from a previous estimate of RMB 27.73 [5][17].