Citigroup: Reinitiate coverage of MICROPORT (00853) with a "buy" rating, target price of HK$16.

Citibank released a research report stating that the fundamentals of MICROPORT (00853) continue to improve, and therefore they have resumed coverage of the stock with a "buy" rating and a target price of HK$16, equivalent to a 39x and 24x P/E ratio for 2026 and 2027, respectively, making it one of the top picks in the industry. The report mentioned that in the first half of 2025, MICROPORT's net loss narrowed by 66% year-on-year, and the bank expects the company to turn a profit in the second half of 2025. In addition, the bank expects high-growth overseas platforms to achieve a year-on-year growth of 70% to 80% in 2025, with the growth trend expected to continue in 2026. The company is also expected to benefit from post-merger synergies, which will add to its upward potential. Citibank maintains its revenue forecasts for MICROPORT for the fiscal years 2025 to 2027, at RMB 1.098 billion, RMB 1.253 billion, and RMB 1.422 billion, respectively. In terms of profitability, the bank has raised its forecast for the company's fiscal year 2025 to a loss of RMB 41 million, up 17%, but maintains its profit forecasts for fiscal years 2026 and 2027 at RMB 95 million and RMB 154 million, respectively.