Core Viewpoint - CICC maintains the profit forecast for MicroPort Medical (00853) for 2025/26 and keeps the outperform rating unchanged, raising the target price by 54.5% to HKD 17, indicating a 31% upside potential from the current price [1] Company Updates - A major shareholder, Otsuka Pharmaceutical, has proposed a share sale plan, with buyers including Shanghai Shihua Capital, We'Tron Capital Limited, and the company's management investment platform [2] Shareholder Changes - Otsuka Pharmaceutical sold approximately 20.7% of its shares, with 7.3% going to Shanghai Shihua Capital, 7.3% to We'Tron Capital Limited, and 1.1% to the management investment platform, retaining about 5% ownership. The entry of state-owned capital is seen as a recognition of MicroPort's assets, potentially aiding core business expansion and governance improvement [3] Business Recovery - Since 2020, MicroPort's major products have been affected by national or provincial group purchasing, but by July 2025, most products are expected to have cleared the price reduction impacts. The trend of reducing internal competition is anticipated to stabilize pricing and contribute to revenue growth from new products [4] International Expansion - MicroPort's cardiovascular and surgical robot product lines are considered globally competitive, with products entering 40 major countries by the end of 2024. The company expects overseas revenue to reach USD 0.96 billion in 2024, with an anticipated growth rate of over 80% year-on-year in 2025 [5]

Group 1 - The core viewpoint of the report is that CICC maintains its earnings forecast for MicroPort Medical (00853) for 2025/26 and keeps the "outperform" rating unchanged, while raising the target price by 54.5% to HKD 17, indicating a 31% upside potential from the current price [1] - The report highlights the improvement in the company's shareholder structure, the upcoming launch of new domestic products, and the acceleration of overseas business as positive factors for future growth [1][2] - The significant shareholder, Otsuka Pharmaceutical, has proposed a share sale plan, with buyers including Shanghai Shihua Capital, We'Tron Capital Limited, and the company's management investment platform [2] Group 2 - Otsuka Pharmaceutical previously held approximately 20.7% of the company's shares, selling 7.3% to Shanghai Shihua Capital, 7.3% to We'Tron Capital Limited, and 1.1% to the management investment platform, retaining about 5% ownership [3] - The entry of state-owned capital through Shanghai Shihua Capital is seen as a recognition of MicroPort's assets, which may support the company's core business expansion and potential strategic acquisitions, while also improving corporate governance [3] - The core shareholders and management team increasing their stakes indicates a deeper alignment of interests with the company [3] Group 3 - The company's core businesses are gradually recovering from the impact of centralized procurement, with expectations of price stabilization and new products contributing to incremental revenue [4] - The report anticipates that by July 2025, most major products will have cleared the price reduction effects of centralized procurement, leading to a positive state of increased penetration rates and domestic production [4] - The company is expected to benefit from a favorable trend of price system stabilization and continuous new product contributions [4] Group 4 - MicroPort's cardiovascular and surgical robot product lines are considered to have strong global competitiveness, with products expected to enter 40 major countries by the end of 2024 [5] - The company has 20 mature overseas subsidiaries and 670 sales personnel, with projected overseas revenue of USD 0.96 billion in 2024, and an expected growth rate of over 80% year-on-year in 2025 [5] - The company is anticipated to maintain a rapid growth rate over the next 3-5 years [5]