HK Stock Market Move | MicroPort (00853) rose nearly 8% during trading. Shanghai MicroPort Endovascular MedTech (Group) Co., Ltd.'s net profit in the first three quarters increased by more than 42%. JP Morgan raised the company's long-term net profit rate forecast.

Microport (00853) rose nearly 8% during trading hours, rising 4.1% to HK$6.86 at the time of publication, with a trading value of HK$96.2774 million. On the news front, Microport announced the performance of Shanghai MicroPort Endovascular MedTech (Group) Co., Ltd. for the first 9 months of 2024, with revenues of approximately 970 million yuan, a year-on-year increase of 9.13%; net profit attributable to shareholders of Shanghai MicroPort Endovascular MedTech (Group) Co., Ltd. was approximately 553 million yuan, a year-on-year increase of 42.46%. JP Morgan released a report stating that after the release of the third quarter performance of Microport's subsidiary, Shanghai MicroPort Endovascular MedTech (Group) Co., Ltd., the target price of Microport's stock was raised from HK$7.5 to HK$7.8, with a rating of "neutral". The bank pointed out that the thoracic/abdominal aortic stent business segment had reduced prices by approximately 20% to 35% at the end-user level and was expected to impact Shanghai MicroPort Endovascular MedTech (Group) Co., Ltd., resulting in a 25% to 30% decrease in factory prices. However, the bank noted that Shanghai MicroPort Endovascular MedTech (Group) Co., Ltd.'s efforts to improve operational efficiency would help to increase long-term profit margins, with long-term net profit margin forecasts being raised from 23% to approximately 30%. Therefore, the bank has also revised Microport's long-term net profit margin forecast from the original 11% to 12%.