MicroTech Medical (Hangzhou) Co., Ltd. Class H (2235) AI Stock Analysis

• Market Cap: HK$3.15B
• Dividend Yield: N/A
• Average Volume (3M): 337.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: 49.86%
• EPS Growth: 80.35%
• Country: HK
• Employees: 678
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): >-0.01
• Shares Outstanding: 169,175,840
• 10 Day Avg. Volume: 128,760
• 30 Day Avg. Volume: 337,764
• PEG Ratio: 0.79
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 6.98
• P/FCF Ratio: -11.82
• 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): 0.06
• Revenue Forecast (FY): HK$586.93M

• Rating: 44 Neutral
• Price Target: HK$6.50 ▼(-8.45% Downside)

MicroTech Medical's overall stock score is primarily impacted by its financial performance, marked by strong revenue growth but significant profitability and cash flow challenges. Technical analysis indicates bearish momentum, and valuation metrics are weak due to a negative P/E ratio. The absence of earnings call data and corporate events leaves these areas unaddressed.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates a robust demand for its products and an expanding market presence, which is crucial for long-term success.

Low Leverage

Minimal leverage enhances financial stability and provides flexibility to invest in growth opportunities without significant debt burden.

Gross Profit Margin

A strong gross profit margin suggests efficient production and pricing strategies, which can support profitability improvements over time.

Negative Factors

Profitability Challenges

Ongoing profitability issues indicate cost management challenges, which could hinder the company's ability to reinvest in growth and innovation.

Negative Cash Flow

Negative cash flows can strain operations and limit the company's ability to fund new projects, impacting long-term growth potential.

Negative Return on Equity

Negative ROE indicates inefficiencies in using shareholders' equity to generate profits, which may affect investor confidence and capital raising.

MicroTech Medical (Hangzhou) Co., Ltd. Class H Business Overview & Revenue Model

Company Description

MicroTech Medical (Hangzhou) Co., Ltd. is a leading manufacturer and supplier in the medical device industry, specializing in the development and production of advanced medical technologies and devices. The company operates primarily in the healthcare sector, focusing on innovative solutions for diabetes management, including insulin delivery systems and blood glucose monitoring devices. With a commitment to enhancing patient care and outcomes, MicroTech Medical integrates cutting-edge technology into its products to improve the quality of life for individuals with chronic conditions.

How the Company Makes Money

MicroTech Medical generates revenue primarily through the sale of its medical devices and technology solutions. Key revenue streams include direct sales of insulin delivery systems, blood glucose monitoring devices, and related accessories to hospitals, clinics, and pharmacies. The company also engages in partnerships with healthcare providers and organizations to supply its products, which can further enhance sales volume. Additionally, MicroTech Medical may earn income from research and development agreements, as well as licensing its technology to other medical device manufacturers. Strategic collaborations with healthcare institutions and participation in medical conferences help the company to increase brand visibility and expand its customer base, contributing to overall revenue growth.

MicroTech Medical (Hangzhou) Co., Ltd. Class H Financial Statement Overview

Summary

MicroTech Medical shows strong revenue growth but faces significant profitability challenges. The balance sheet is stable with minimal leverage, yet negative returns on equity and cash flow issues highlight areas needing improvement.

Income Statement

MicroTech Medical has shown a positive revenue growth rate of 17.87% in the latest year, indicating a strong upward trajectory in sales. However, the company continues to face challenges with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is relatively healthy at 52.91%, but the persistent negative net profit margin of -18.26% highlights ongoing cost management issues.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.0021, reflecting minimal leverage and a strong equity position. However, the return on equity is negative at -3.20%, indicating inefficiencies in generating returns from shareholders' equity. The equity ratio is robust, suggesting financial stability despite profitability challenges.

Cash Flow

MicroTech Medical's cash flow situation is concerning, with negative operating and free cash flows. The free cash flow to net income ratio is positive at 1.69, indicating some efficiency in converting net income to cash, but the overall cash flow remains negative. The company needs to improve its cash generation capabilities to support growth and operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	317.77M	345.62M	248.35M	173.54M	151.40M	75.28M
Gross Profit	162.57M	182.85M	123.22M	79.66M	70.88M	36.54M
EBITDA	-62.16M	-121.38M	-184.12M	-110.19M	-39.80M	-141.52M
Net Income	-26.53M	-63.12M	-125.02M	-35.04M	-48.18M	-121.01M
Balance Sheet
Total Assets	2.21B	2.15B	2.16B	2.29B	2.33B	777.27M
Cash, Cash Equivalents and Short-Term Investments	1.72B	1.71B	1.89B	2.05B	2.15B	654.99M
Total Debt	30.83M	4.20M	5.06M	717.00K	255.00K	126.00K
Total Liabilities	238.37M	171.72M	97.70M	82.06M	82.48M	48.76M
Stockholders Equity	1.97B	1.97B	2.06B	2.21B	2.25B	728.52M
Cash Flow
Free Cash Flow	118.45M	-203.88M	-181.69M	-137.45M	-62.94M	-35.26M
Operating Cash Flow	76.64M	-120.65M	-153.00M	-107.67M	-44.22M	-9.57M
Investing Cash Flow	-41.22M	121.16M	-540.70M	-965.58M	97.69M	-1.22M
Financing Cash Flow	-19.35M	-33.15M	-23.46M	-20.57M	1.57B	511.28M

MicroTech Medical (Hangzhou) Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2235, the sentiment is Positive. The current price of 7.1 is above the 20-day moving average (MA) of 6.92, above the 50-day MA of 7.06, and above the 200-day MA of 6.71, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 60.55 is Neutral, neither overbought nor oversold. The STOCH value of 91.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2235.

MicroTech Medical (Hangzhou) Co., Ltd. Class H 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%	1.54%	-5.18%	-9.69%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
2235	44 Neutral	HK$3.15B	-104.71	-1.39%	―	49.86%	80.35%
2160	43 Neutral	HK$2.68B	513.64	0.22%	―	-4.38%	―
2500	41 Neutral	HK$1.01B	-1.46	-26.80%	―	-8.56%	-14.84%

MicroTech Medical (Hangzhou) Co., Ltd. Class H Corporate Events

MicroTech Medical Announces 2025 EGM to Discuss Share Incentive Scheme

MicroTech Medical (Hangzhou) Co., Ltd. has announced its 2025 first extraordinary general meeting (EGM) to be held on December 24, 2025. The meeting will address resolutions concerning the approval of a Share Incentive Scheme, which could impact the company’s governance and employee motivation strategies.

MicroTech Medical’s LinX System Gains Approval in India, Expanding Global Reach

MicroTech Medical has announced that its continuous glucose monitoring system, LinX, has received market approval in India, a strategically important and high-growth market. This approval is expected to significantly enhance the company’s international market presence and support its revenue growth, as India has a large diabetic population with a pressing need for advanced diabetes management solutions.

MicroTech Medical Announces Changes in Proceeds Utilization and Timetable Extension

MicroTech Medical (Hangzhou) Co., Ltd. has announced a change in the utilization of its remaining unutilized proceeds from its Global Offering and an extension of the expected timetable for their use. The company plans to fully utilize the funds by December 31, 2027, to further develop its core product through clinical trials, expand its global commercialization capabilities, and enhance its manufacturing capacity. This strategic move is expected to strengthen the company’s market position and operational capabilities.

MicroTech Medical Expands Insulin Pump Approval to Younger Patients

MicroTech Medical (Hangzhou) Co., Ltd. has announced the approval of its Equil Patch Insulin Pump for use in children and adolescents aged 3-17 by the National Medical Products Administration. This expansion of indication demonstrates the company’s strong research and development capabilities and is expected to enhance its market position in the diabetes treatment industry. The product offers significant advantages over traditional insulin pumps, including improved accuracy, safety, and convenience, which could lead to increased market share and strategic growth.