HK Stock Market Move | MICROPORT (00853) falls more than 4% as Morgan Stanley lowers its future profit margin assumptions for the next few years and decreases the target price by 14%.

MICROPORT (00853) fell more than 4%, falling to 4.41% at the time of publication, at 4.77 Hong Kong dollars, with a turnover of 9.824 million Hong Kong dollars. On the news front, Morgan Stanley released a research report stating that they have lowered MICROPORT's earnings forecast for 2027-2030 by 5-9% to reflect the conservative profit margin assumptions for 2027-2030 under sustained pricing pressure, and correspondingly raised the discount rates for various business segments in the SOTP valuation from 10-11% to 11-13.5%. As a result, Morgan Stanley lowered MICROPORT's target price by 14% from 7.4 Hong Kong dollars to 6.4 Hong Kong dollars. They maintain a "in line with the market" rating. The report pointed out that the recent decrease in MICROPORT's sales forecast has been offset by the accelerated decrease in research and operating expenses, with the bank predicting that the group's balance of payments for 2026 will remain unchanged, and adjusting earnings forecasts per share for 2024-2026, with increases of 6.1% and 0.4% for 2024 and 2025, and a decrease of 7.1% for 2026.