MicroPort EP(SH:688351) Tai Ping Yang·2024-04-26 03:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative increase of over 15% compared to the CSI 300 index in the next six months [1][19]. Core Insights - The company reported a significant increase in revenue for Q1 2024, with a total of 0.89 billion yuan, representing a year-on-year growth of 71.01%. This growth is attributed to the company's active expansion in domestic and international markets, along with the positive impact of volume-based procurement policies [3][4]. - The net profit attributable to the parent company reached 0.04 billion yuan, showing a remarkable year-on-year increase of 144.70% [3]. - The company is experiencing accelerated product rollout due to collective procurement, with new products gaining recognition and expanding into the atrial fibrillation market [4]. Financial Performance - The company’s total share capital is 4.71 billion shares, with a market capitalization of 11.66 billion yuan. The stock has seen a 12-month high of 28.75 yuan and a low of 15.44 yuan [3]. - The comprehensive gross margin for Q1 2024 was 60.54%, with a significant improvement in net profit margin to 4.68%, up by 22.57 percentage points year-on-year [5]. - The company’s operating income is projected to grow from 4.77 billion yuan in 2024 to 9.03 billion yuan in 2026, with corresponding net profits expected to rise from 0.49 billion yuan to 1.58 billion yuan during the same period [5][11]. Market Expansion - The usage of pressure catheters exceeded 1,000 procedures in 2023, with continued high growth in Q1 2024. The company anticipates rapid market penetration in cities like Beijing, Tianjin, and Hubei [4]. - The company has received domestic registration for its cryoablation product series and has completed listings in over 20 provinces, with ongoing clinical trials at leading centers [4]. - The company is also advancing its PFA project, which is expected to receive certification by Q1 2025, and has entered a special review process for its RDN product [4]. Profitability Analysis - The report highlights a significant reduction in operating expense ratios, contributing to the improved net profit margin. The sales expense ratio decreased by 10.78 percentage points, and the R&D expense ratio decreased by 22.82 percentage points [5]. - The company’s earnings per share (EPS) are projected to increase from 0.10 yuan in 2024 to 0.34 yuan in 2026, reflecting strong growth potential [5][11].