Haitong International initiates coverage on SCIENTECH with an "Outperform" rating and a target price of 28.94 yuan

Haitong International published a report, initiating coverage on SCIENTECH (02291.HK) with an "Outperform" rating and a target price of 28.94 yuan. The firm predicts its earnings per share for the years 2025 to 2027 will be 0.89 yuan, 1.15 yuan, and 1.45 yuan respectively. Referencing the average price-to-earnings ratio of comparable companies at 50.8 times for 2025, and considering the company's well-established product layout as well as the good development of its new business segments in recent years, a target price-to-earnings ratio of 30 times for 2025 is given.

The report states that the company is a leader in congenital heart disease interventional medical devices in China, with traditional business relying on biodegradable technology, steadily increasing profits, and developing heart valve products as a second growth curve. It believes that these two business segments will significantly enhance the company's profits in the next one to five years