Summary of MicroPort (0853) Conference Call Company Overview - Company: MicroPort (0853 HK) - Industry: Healthcare, specifically medical devices Key Points Financial Performance - 1H2025 Results: - Sales decline of less than 4% (excluding forex effects) - Adjusted net loss limited to US$110 million [1][5] - Challenges: - Domestic competition intensifying - Policy-induced price adjustments - International trade conflicts affecting sales growth across all segments, except for the surgical robot business [1][5] Future Outlook - 2H2025 Expectations: - Anticipated recovery in sales momentum, particularly in the endovascular business during 2Q2025 - Significant growth potential in the surgical robot business as procurement funding in China normalizes [1][5] - Management Comments: - Awaiting insights on each business segment, especially orthopedics and CRM, during the interim earnings call [1][5] Investment Thesis - Profitability Outlook: - Expected decrease in net loss and potential for profitability by 2026, as per performance covenants from recent financing [5] - Cost Optimization: - Targeted cost optimization and inter-segment sales leverage expected to reduce opex/sales ratio from 96% in 2023 to below 50% by 2026 [5] - Sales Growth: - Estimated sales growth of approximately 20% per annum [5] Valuation - Price Target: - Dec-25 price target set at HK$8.60 based on DCF valuation [6] - WACC Assumptions: - Risk-free rate: 3.8% - Market risk premium: 6.4% - Beta: 1.5 - WACC: 12.7% [8] Risks - Downside Risks: - Worse-than-expected earnings - Higher-than-expected financial obligations, including CRM share repurchase - Dilution risk from further equity financing - Geopolitical risks [9] Additional Insights - Convertible Loans: - Adjusted net loss must not exceed US$110 million in 1H25 and US$55 million in 2025 as per performance covenant [1][5] - Market Position: - MicroPort manufactures high-value medical devices used across various disease areas, indicating a broad market presence [5] This summary encapsulates the critical financial and operational insights from the conference call regarding MicroPort, highlighting both current challenges and future opportunities within the healthcare sector.
微创医疗-2025 年上半年预售销售额及经调整净利润略低于预期，但 2025 年下半年有望复苏