MicroPort NeuroTech Limited (2172) AI Stock Analysis

• Market Cap: HK$5.92B
• Dividend Yield: 1.58%
• Average Volume (3M): 2.57M
• Price to Earnings (P/E): 26.8
• Beta (1Y): 1.05
• Revenue Growth: -5.18%
• EPS Growth: -9.69%
• Country: HK
• Employees: 527
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.17
• Shares Outstanding: 585,034,800
• 10 Day Avg. Volume: 2,683,063
• 30 Day Avg. Volume: 2,571,422
• PEG Ratio: 0.24
• Price to Book (P/B): 2.74
• Price to Sales (P/S): 6.15
• P/FCF Ratio: 16.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 3.58
• Revenue Forecast (FY): HK$6.45B

• Rating: 58 Neutral
• Price Target: HK$12.00 ▲(16.62% Upside)

MicroPort NeuroTech Limited's overall stock score is primarily influenced by its strong financial performance, despite concerns over cash flow. Technical analysis indicates bearish momentum, which negatively impacts the score. The valuation is moderate but not compelling enough to offset technical weaknesses.

Positive Factors

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for strategic investments and growth.

Profitability

Strong profit margins indicate effective cost management and operational efficiency, supporting sustainable profitability and competitive positioning.

Operational Efficiency

Healthy EBIT and EBITDA margins suggest the company is effectively managing its operations, which supports long-term profitability and competitiveness.

Negative Factors

Revenue Growth Decline

Negative revenue growth can signal challenges in market expansion or product demand, potentially impacting long-term growth prospects.

Cash Flow Concerns

Zero operational cash flow raises concerns about the company's ability to generate cash, which is crucial for funding operations and growth.

EPS Growth Decline

Declining EPS growth can reflect challenges in maintaining profitability, potentially affecting investor confidence and long-term value creation.

MicroPort NeuroTech Limited Business Overview & Revenue Model

Company Description

MicroPort NeuroTech Limited (2172) is a leading medical technology company focused on the development and commercialization of innovative neurotechnological solutions. Operating within the healthcare sector, the company specializes in advanced neurostimulation devices and systems aimed at addressing neurological disorders. Its core products include implantable devices for deep brain stimulation, spinal cord stimulation, and other neuromodulation therapies that enhance patient outcomes and improve quality of life.

How the Company Makes Money

MicroPort NeuroTech Limited generates revenue primarily through the sale of its neurostimulation devices and related services. The company has a robust revenue model that includes direct sales to hospitals and healthcare providers, as well as partnerships with distributors and medical device companies for wider market reach. Key revenue streams include initial device sales, recurring revenue from consumables associated with the devices, and maintenance services. Additionally, the company may benefit from strategic collaborations and research partnerships with academic institutions and other healthcare organizations, which can lead to product development and commercialization opportunities, further enhancing its earnings potential.

MicroPort NeuroTech Limited Financial Statement Overview

Summary

MicroPort NeuroTech Limited shows strong revenue and profit growth with a solid balance sheet, low leverage, and efficient equity utilization. However, concerns about recent operational cash flow and cash generation capabilities need addressing for sustained growth and liquidity.

Income Statement

MicroPort NeuroTech Limited has demonstrated robust revenue growth, with a notable increase from 2023 to 2024. The gross profit margin and net profit margin are strong, reflecting effective cost management and profitability. EBIT and EBITDA margins are also healthy, indicating operational efficiency and profitability. Overall, the income statement showcases a positive growth trajectory and solid profitability.

Balance Sheet

The company's balance sheet shows a low debt-to-equity ratio, signifying low leverage and financial stability. The return on equity is impressive, suggesting efficient use of equity to generate profits. However, the equity ratio indicates a high reliance on equity, which could limit leverage benefits. Overall, the balance sheet reflects financial strength with controlled liabilities.

Cash Flow

The cash flow statement reveals some concerns with operational cash flow being zero in the latest period, which could indicate cash generation issues. The free cash flow has fluctuated in previous years, but there is a lack of data for current growth assessment. Despite past positive free cash flow, the current lack of free cash flow data poses a risk to cash flow stability. The overall cash flow position needs improvement to ensure ongoing liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	736.47M	761.76M	665.62M	547.35M	382.80M	221.92M
Gross Profit	541.92M	555.93M	511.79M	393.00M	298.35M	164.78M
EBITDA	295.56M	340.48M	221.60M	175.46M	108.83M	68.24M
Net Income	203.58M	254.16M	145.55M	-21.77M	24.17M	45.29M
Balance Sheet
Total Assets	2.08B	2.04B	1.96B	1.82B	1.34B	785.61M
Cash, Cash Equivalents and Short-Term Investments	1.01B	1.06B	1.00B	1.13B	593.29M	440.40M
Total Debt	24.72M	37.12M	61.36M	85.24M	109.70M	331.15M
Total Liabilities	352.39M	335.70M	322.39M	331.35M	1.52B	412.73M
Stockholders Equity	1.73B	1.71B	1.64B	1.47B	-174.94M	372.88M
Cash Flow
Free Cash Flow	178.02M	275.54M	-48.83M	175.85M	99.43M	13.09M
Operating Cash Flow	183.06M	284.41M	153.78M	223.80M	157.41M	47.23M
Investing Cash Flow	-73.53M	-160.55M	-233.16M	-344.52M	-186.79M	-73.04M
Financing Cash Flow	-229.48M	-226.25M	-33.28M	329.54M	200.75M	431.88M

MicroPort NeuroTech Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2172, the sentiment is Negative. The current price of 10.29 is below the 20-day moving average (MA) of 10.40, below the 50-day MA of 11.20, and below the 200-day MA of 12.00, indicating a bearish trend. The MACD of -0.29 indicates Negative momentum. The RSI at 37.80 is Neutral, neither overbought nor oversold. The STOCH value of 26.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2172.

MicroPort NeuroTech Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2172	58 Neutral	HK$5.92B	26.76	11.79%	1.58%	-5.18%	-9.69%
2190	58 Neutral	HK$7.67B	43.46	4.99%	0.49%	35.01%	483.73%
1302	57 Neutral	HK$6.57B	85.39	1.98%	―	3.42%	-70.82%
1858	55 Neutral	HK$9.02B	20.99	8.69%	1.87%	14.56%	61.60%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
2160	43 Neutral	HK$2.68B	504.55	0.22%	―	-4.38%	―
9996	39 Underperform	HK$3.90B	-15.90	-11.20%	―	29.25%	9.02%

MicroPort NeuroTech Limited Corporate Events

MicroPort NeuroTech Grants Share Options to Key BCI Researcher

MicroPort NeuroTech Limited has announced the grant of 500,000 share options to Dr. Will Zhang, the R&D Senior Director of BCI Technologies and Chief Researcher at the Chaos Brain-Computer Research Institute. This move is part of the company’s Share Scheme aimed at incentivizing key personnel to drive business development and success. The options, which have a ten-year validity and a five-year vesting period, are intended to motivate Dr. Zhang by providing a personal stake in the company, aligning with the company’s strategy to enhance performance and efficiency without imposing additional performance targets.

MicroPort NeuroTech Announces Board Changes to Enhance Leadership

MicroPort NeuroTech Limited has announced changes in its board of directors, with Dr. Chang Zhaohua and Mr. Sun Qingwei resigning from their roles as non-executive directors and chairman of the board to focus on other business endeavors. Dr. Zhang Jie has been appointed as the new chairman and non-executive director, bringing extensive experience in research and development, particularly in the creation of the Firehawk Stent and securing numerous patents. Additionally, Mr. Liu Xudong has joined as a non-executive director, bringing significant marketing expertise from his previous roles in the healthcare sector. These changes are expected to strengthen the company’s leadership and continue its focus on innovation and market expansion.