MicroPort Scientific (0853) AI Stock Analysis

• Market Cap: $16.18B
• Dividend Yield: N/A
• Average Volume (3M): 17.32M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.01
• Revenue Growth: 8.11%
• EPS Growth: 55.55%
• Country: HK
• Employees: 6,347
• Sector: Healthcare
• Sector Strength: 44
• Industry: Medical - Devices
• EPS (TTM): -0.91
• Shares Outstanding: 1,849,589,100
• 10 Day Avg. Volume: 27,776,495
• 30 Day Avg. Volume: 17,322,844
• PEG Ratio: -0.42
• Price to Book (P/B): 4.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.94
• Enterprise Value/Market Cap: 0.31
• Enterprise Value/Revenue: 1.28
• Enterprise Value/Gross Profit: 8.77
• Enterprise Value/Ebitda: -5.74
• 1Y Price Target: $13.26
• Price Target Upside: 52.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 44 Neutral
• Price Target: ―

MicroPort Scientific's overall stock score is heavily impacted by its weak financial performance, marked by persistent losses and high leverage. Technical analysis presents a mixed outlook with short-term consolidation but a negative momentum trend. Valuation concerns arise from a negative P/E ratio and lack of dividend yield, further impacting the stock's attractiveness.

Positive Factors

Balance Sheet Management

MicroPort Scientific Corp had a cash and financial asset balance of US$981 million against short-term bank borrowings, showing strong balance sheet management.

Export Sales

Total export sales are expected to increase by 80%+ YoY to US$170 million.

Sales Growth

MicroPort Scientific Corp guides 10-11% overall sales growth for 2025, with cardiovascular segment expecting growth at 15%+.

Negative Factors

Net Loss Forecast

The company has widened its net loss forecasts for the upcoming years due to harsh price cuts from bulk purchases.

Price Cuts

The scope of price cuts has expanded to include innovative devices and small sales volume products.

Research and Development

R&D expenses are expected to be cut significantly, delaying the progress of products in development and reducing future sales growth potential.

MicroPort Scientific Business Overview & Revenue Model

Company Description

MicroPort Scientific Corporation, an investment holding company, manufactures, and markets, and distributes medical devices in the People's Republic of China, North America, Europe, other Asian countries, South America, and internationally. The company's Cardiovascular Devices segment offers products and services for the treatment of coronary artery-related diseases; coronary stents and related delivery systems; and balloon catheters and accessories. Its Orthopedics Devices segment provides reconstructive joints, spine and trauma, and other professional implants and instruments. The company's Cardiac Rhythm Management Business segment offers defibrillators, cardiac resynchronization therapy devices, and pacemakers for the diagnosis, treatment, and management of heart rhythm disorders and heart failure. Its Endovascular and Peripheral Vascular Devices segment provides products and services for the interventional treatment of thoracic and abdominal aortic aneurysm, peripheral vascular diseases, aortic dissection, and other endovascular related diseases. The company's Neurovascular Devices segment offers neurovascular therapeutic and access devices for neurovascular diseases. Its Heart Valve Business segment provides VitaFlow Transcatheter aortic valve and delivery system, VitaFlow Liberty Transcatheter aortic valve implantation and retrievable delivery systems, Alwide Plus Balloon Catheter, various transcatheter aortic valve implantation, transcatheter mitral valve, transcatheter tricuspid valve, and surgical valve products. The company's Surgical Robot Business segment designs, develops, and commercializes surgical robots comprising robot ontology, control algorithm, electrical engineering, image-based navigation, and precision imaging. Its Surgical Devices segment researches and develops, manufactures, and sells surgical devices. MicroPort Scientific Corporation was founded in 1998 and is headquartered in Shanghai, the People's Republic of China.

How the Company Makes Money

MicroPort Scientific makes money primarily through the sale of its medical devices and solutions across its various sectors. The company's revenue streams include the direct sale of products such as stents, pacemakers, orthopedic implants, and other specialized medical devices to healthcare providers and distributors worldwide. Additionally, MicroPort engages in strategic partnerships and collaborations to enhance its product offerings and market reach, thereby contributing to its revenue. The company's earnings are also influenced by its investment in research and development, which drives innovation and the introduction of new products to the market.

MicroPort Scientific Financial Statement Overview

Summary

MicroPort Scientific faces considerable financial challenges characterized by persistent losses, high leverage, and cash flow issues. Despite revenue growth, the company's profitability and liquidity remain weak, necessitating strategic improvements in cost management and operational efficiency to stabilize its financial position.

Income Statement

The income statement shows significant challenges in profitability, with a negative net income and EBIT over the past three years. Although there has been a revenue growth trend from 2020 to 2024, the company has consistently reported negative EBIT and net profit margins, indicating persistent operational inefficiencies and cost management issues.

Balance Sheet

The balance sheet highlights a concerning increase in total debt over the years, contributing to a high debt-to-equity ratio. Stockholders' equity has decreased significantly, reflecting financial instability. The equity ratio has also declined, indicating a heavier reliance on debt financing. These factors suggest potential solvency risks.

Cash Flow

The cash flow statement reveals negative operating cash flows, which paired with consistent negative free cash flows, indicates liquidity challenges. The company has been unable to generate positive cash flows from operations, relying heavily on financing activities to sustain operations, which poses a risk to financial health.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.03B	950.73M	840.83M	778.64M	648.73M
	Gross Profit
574.09M	532.10M	501.77M	491.77M	436.03M
	EBIT
-125.47M	-516.17M	-506.57M	-339.24M	-167.14M
	EBITDA
-45.30M	-382.54M	-430.26M	-251.29M	-106.87M
	Net Income Common Stockholders
-214.04M	-477.63M	-436.51M	-351.30M	-223.35M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
974.48M	1.13B	1.24B	1.75B	1.00B
	Total Assets
3.63B	3.93B	3.99B	4.38B	2.47B
	Total Debt
1.69B	1.70B	1.47B	1.24B	296.31M
	Net Debt
972.21M	679.20M	264.94M	-510.72M	-705.77M
	Total Liabilities
2.49B	2.53B	2.20B	2.16B	1.08B
	Stockholders Equity
603.47M	757.82M	1.14B	1.49B	1.13B
Cash Flow		Free Cash Flow
0.00	-430.99M	-600.58M	-505.45M	-143.58M
	Operating Cash Flow
0.00	-231.87M	-343.30M	-257.53M	-23.20M
	Investing Cash Flow
0.00	-376.81M	-412.75M	-655.74M	-148.13M
	Financing Cash Flow
0.00	434.90M	273.00M	1.66B	846.89M

MicroPort Scientific Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0853, the sentiment is Positive. The current price of 8.72 is above the 20-day moving average (MA) of 7.29, above the 50-day MA of 7.20, and above the 200-day MA of 6.64, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 71.86 is Negative, neither overbought nor oversold. The STOCH value of 84.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0853.

MicroPort Scientific Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1789	78 Outperform	HK$7.04B	23.59	10.92%	0.72%	20.19%	45.54%
2172	78 Outperform	HK$7.47B	26.85	15.22%	1.50%	12.48%	71.75%
1858	65 Neutral	HK$6.64B	32.03	4.39%	3.18%	-32.05%	-54.47%
1302	61 Neutral	HK$7.30B	31.01	6.49%	―	0.87%	-18.05%
Sector *	54 Neutral	$5.38B	3.40	-45.06%	3.28%	16.75%	-0.02%
0853	44 Neutral	$16.18B	―	-31.45%	―	8.11%	55.55%
2252	44 Neutral	HK$17.55B	―	-160.49%	―	141.72%	38.39%

MicroPort Scientific Corporate Events

MicroPort’s Endovastec Reports Q1 2025 Financial Results

Shanghai MicroPort Endovascular MedTech, a subsidiary of MicroPort Scientific, reported a decline in revenue and profit for the first quarter of 2025 compared to the same period in 2024. Despite the decrease in financial performance, the company’s total assets and equity showed slight growth, indicating a stable financial position amid challenging market conditions.

MicroPort Scientific Announces 2025 Annual General Meeting and Key Resolutions

MicroPort Scientific Corporation has announced its Annual General Meeting scheduled for May 30, 2025, in Shanghai, China. Key resolutions include the re-election of directors, approval of financial statements, and granting mandates for share buybacks and issuance. These actions are significant for maintaining the company’s governance and operational flexibility, potentially impacting its market positioning and shareholder value.

MicroPort Scientific Grants Share Options to Employees

MicroPort Scientific Corporation has announced the grant of 3,408,502 share options to 24 eligible employees under its Share Scheme, which was adopted on 19 June 2023. The options, valid for ten years starting from 1 April 2025, are intended to incentivize employees based on their performance and contributions, without additional performance targets. The exercise price is set at HK$8.34 per share, aligning with the average closing price of the shares prior to the grant date. This move aims to promote the development and success of the company’s business, with a clawback mechanism in place to ensure alignment with the company’s objectives.

MicroPort Scientific Reports Improved Financial Results and Global Expansion

MicroPort Scientific announced its annual results for the year ended December 31, 2024, reporting a revenue increase of 10% year-on-year, excluding foreign exchange impacts, and a significant narrowing of net loss by 59%. The company attributed this improvement to increased international sales, strategic divestments, and enhanced operational efficiency. MicroPort’s global commercialization platform has enabled its products to reach over 20,000 hospitals in more than 100 countries, strengthening its market position and expanding its competitive edge. The company remains focused on financial health and core business operations to drive sustainable growth.

MicroPort Scientific Schedules Board Meeting to Review 2024 Financial Results

MicroPort Scientific Corporation has announced a board meeting scheduled for March 28, 2025, to consider and approve the company’s final results for the year ending December 31, 2024. This meeting is significant as it will address the company’s financial performance and potentially impact its strategic decisions and stakeholder interests.

MicroPort’s Endovastec Reports Revenue and Profit Growth Amid Equity Decline

Shanghai MicroPort Endovascular MedTech (Endovastec), a subsidiary of MicroPort Scientific Corporation, reported a 1.6% increase in revenue and a 13.4% rise in profit for the year ending December 31, 2024. Despite these gains, the total equity attributable to equity owners saw a slight decrease of 1.4%. The financial results, prepared under PRC accounting standards, are unaudited and only reflect Endovastec’s operations, not the entire group, prompting caution among investors.