Zylox-Tonbridge Medical Technology Co., Ltd. Class H, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Alexis Yan from Morgan Stanley maintained a Buy rating on the stock and has a HK$27.00 price target.
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Alexis Yan has given his Buy rating due to a combination of factors that indicate strong future growth potential for Zylox-Tonbridge Medical Technology Co., Ltd. The company is poised to benefit from the implementation of regional volume-based procurement (VBP) programs in the second half of 2025, which are expected to drive significant topline growth. Additionally, the VBP guidelines are becoming more accommodating, allowing new domestic entrants to participate at favorable pricing, which should be advantageous for Zylox. The management’s guidance on maintaining a selling ratio of approximately 20% and controlling G&A and R&D expenses further supports the company’s target of achieving an adjusted net margin of around 20%.
Moreover, Zylox’s strategic focus on overseas expansion is a key near-term initiative that is expected to enhance its growth trajectory. The establishment of a localized commercial team globally and the anticipated increase in overseas sales volume suggest a promising outlook. The company’s robust pipeline, including products like the Mammoth Large Lumen Peripheral Thrombus Aspiration Catheter and OCT-guided Peripheral Vascular Targeted Atherectomy Catheter, is expected to contribute to its growth, with launches planned for the second half of 2025. These factors collectively underpin Alexis Yan’s positive outlook and Buy rating for the company’s stock.
According to TipRanks, Yan is a 3-star analyst with an average return of 23.1% and a 71.43% success rate. Yan covers the Healthcare sector, focusing on stocks such as MicroPort Scientific, Zylox-Tonbridge Medical Technology Co., Ltd. Class H, and Jiangsu Hengrui Pharmaceuticals Co., Ltd. Class H.