MicroPort EP(SH:688351) Ping An Securities·2025-10-30 03:45Investment Rating - The report maintains a "Recommended" rating for the company, with a current stock price of 22.87 yuan [1]. Core Insights - The company has shown a significant acceleration in revenue growth, with a year-on-year increase of 15.65% in the first three quarters of 2025, achieving a total revenue of 336 million yuan. The net profit attributable to shareholders reached 41.92 million yuan, reflecting a slight increase of 0.46% year-on-year [4][5]. - The third quarter alone saw a revenue increase of 21.78% year-on-year, indicating a strong growth trend. The domestic market is benefiting from increased clinical recognition of core products, while international market revenue grew over 40% year-on-year, driven by higher penetration rates of pressure monitoring catheters [5][6]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported a revenue of 336 million yuan, with a year-on-year growth of 15.65%. The net profit attributable to shareholders was 41.92 million yuan, with a year-on-year increase of 0.46%. The adjusted net profit (excluding non-recurring items) was 24.07 million yuan, showing a substantial increase of 3297.94% year-on-year [4]. - In Q3 2025, the company achieved a revenue of 113 million yuan, marking a year-on-year growth of 21.78%. However, the net profit attributable to shareholders decreased by 62.56% year-on-year to 9.25 million yuan, primarily due to a high base from government subsidies in the previous year [4][6]. Market Dynamics - The company is experiencing robust growth in both domestic and international markets. In the domestic market, the usage of pressure monitoring catheters has increased, with approximately 3000 units used in the first half of 2025, one-third of which were for atrial fibrillation surgeries. This trend is expected to continue growing steadily [5]. - The international market has seen a revenue increase of over 40% year-on-year, attributed to the rising penetration of pressure monitoring catheters and effective market expansion strategies [5]. Cost Management and Profitability - The company maintained a gross margin of 59.09% for the first three quarters, with a slight decline to 57.09% in Q3, likely due to changes in product mix. The operating expenses were well-controlled, with a sales expense ratio of 28.74% and a management expense ratio of 9.38% [6]. - The report highlights that the company is investing in R&D to enhance long-term competitiveness, with R&D expenses accounting for 21.01% of revenue in Q3 [6]. Product Development - The company is progressing well with new product developments, including a first-generation pulse ablation product approved in April 2025 and a second-generation product under research. The self-developed pressure pulse catheter has submitted for regulatory approval, expected by the end of 2025 [8]. - The intracardiac ultrasound catheter, which features 3D ultrasound localization, is also in the regulatory approval process, anticipated to receive certification in the first half of 2026 [8]. Future Projections - The report forecasts the company's revenue to reach 497 million yuan in 2025, with a net profit of 73 million yuan. Projections for 2026 and 2027 indicate continued growth, with revenues of 654 million yuan and 866 million yuan, respectively, and net profits of 121 million yuan and 183 million yuan [6][11].