Nomura: Raised target price of MICROPORT (00853) to HKD 7.73, rated "Neutral"

Nomura released a research report stating that the target price of MicroPort (00853) has been raised by 15%, from 6.71 Hong Kong dollars to 7.73 Hong Kong dollars, with a "neutral" rating. The bank believes that MicroPort may continue to save costs in the fiscal years 2025 and 2026, especially in the case of still weak sales. The bank stated that the preliminary results of the company for the fiscal year 2024 indicated that revenue was below guidance, but the net loss was not worse than expected. Revenue increased by 10% year-on-year, lower than the guidance of 17%, mainly due to the weak Chinese market despite strong overseas business. The net loss narrowed by over 58% year-on-year to less than 275 million US dollars, mainly due to: 1) cost control; 2) gains from divesting non-core businesses. According to Nomura's calculations, the net loss in the second half of 2024 was 168 million US dollars, a decrease of approximately 61% year-on-year.