Bank of America Securities lowers the target price for MicroPort to 13.9 yuan, reiterating a "Buy" rating

Bank of America Securities published a research report indicating that MicroPort (00853.HK) is expected to record total revenue of USD 1.105 billion in 2025, representing a year-on-year increase of 6% after excluding the impact of exchange rate fluctuations, which is in line with the bank's expectations. It also stated that the group's "GloMatrix" global commercialization platform has achieved breakeven and has become the company's core growth engine, driving revenue growth of 78.8% year-on-year to USD 163.9 million in the fiscal year 2025 after excluding the impact of exchange rate fluctuations.

To reflect that MicroPort Neuro (02172.HK) is no longer included in the consolidated financial statements, Bank of America Securities has lowered its revenue forecasts for MicroPort by 10.9%, 11.7%, and 12.9% for the years 2026 to 2028. At the same time, considering the improvement in the product mix, it has raised its gross margin forecasts for 2026 to 2028 by 1.9 to 2.1 percentage points. Based on the rising costs due to overseas business expansion, the bank has also raised its operating expense ratio forecasts by 11.5 to 12.6 percentage points.

In response to the improvement in the asset-liability structure, the bank has lowered its financing cost forecast for MicroPort and adjusted its target price from HKD 17 to HKD 13.9, reiterating a "Buy" rating, believing that the company has strong growth potential from overseas markets and surgical robotics business