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

• Market Cap: HK$3.15B
• Dividend Yield: N/A
• Average Volume (3M): 340.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.41
• 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: 114,320
• 30 Day Avg. Volume: 340,611
• 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): N/A
• Revenue Forecast (FY): N/A

• 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. engages in the research and development, manufacture, and commercialization of diabetes management medical devices and consumables in the People's Republic of China and internationally. Its products include Equil Patch insulin pump systems, AiDEX continuous glucose monitoring systems, POCT analyzer systems, blood glucose monitoring systems, and closed-loop artificial pancreas. The company is also involved in engineering and technology research experimentation and development activities. MicroTech Medical (Hangzhou) Co., Ltd. was incorporated in 2011 and is headquartered in Hangzhou, the People's Republic of China.

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2235, the sentiment is Neutral. The current price of 7.1 is below the 20-day moving average (MA) of 7.59, below the 50-day MA of 7.12, and above the 200-day MA of 6.90, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 50.20 is Neutral, neither overbought nor oversold. The STOCH value of 55.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	69 Neutral	HK$7.32B	33.08	11.79%	1.50%	-5.18%	-9.69%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
2160	46 Neutral	HK$7.64B	545.45	0.22%	―	-4.38%	―
2235	44 Neutral	HK$3.15B	-103.74	-1.39%	―	49.86%	80.35%
2500	41 Neutral	HK$1.12B	-1.59	-26.80%	―	-8.56%	-14.84%

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

MicroTech Medical Grants 3.3 Million Incentive Shares to Directors and Key Staff

MicroTech Medical (Hangzhou) Co., Ltd. has granted a total of 3.3 million H shares, representing about 0.79% of its issued share capital (excluding treasury shares), to 51 eligible participants under a newly adopted share incentive scheme. The grantees include three directors, two supervisors and 46 core technical, marketing and management staff, with the awarded shares priced at HK$2.50 each versus a closing market price of HK$7.93 on the grant date. The shares will vest in two tranches—40% after one year and 60% after two years—subject to individual performance targets and a clawback mechanism, underscoring the company’s push to align management and key employees’ incentives with long-term corporate performance and shareholder interests.

The most recent analyst rating on (HK:2235) stock is a Hold with a HK$6.50 price target. To see the full list of analyst forecasts on MicroTech Medical (Hangzhou) Co., Ltd. Class H stock, see the HK:2235 Stock Forecast page.

MicroTech Medical Shareholders Approve New Share Incentive Scheme at 2025 EGM

MicroTech Medical (Hangzhou) Co., Ltd. held its first extraordinary general meeting of 2025 in Hangzhou, where all resolutions put to shareholders were approved by poll. With 71.29% of voting shares represented, shareholders backed both the adoption of a new share incentive scheme and the mandate for the board and/or its administrative committee to manage matters related to the scheme, after excluding treasury shares and those held under the H Share Award and Trust Scheme that were required to abstain. The approval strengthens the company’s ability to implement equity-based incentives, which may support its efforts to attract and retain talent and better align management and shareholder interests.

The most recent analyst rating on (HK:2235) stock is a Hold with a HK$6.50 price target. To see the full list of analyst forecasts on MicroTech Medical (Hangzhou) Co., Ltd. Class H stock, see the HK:2235 Stock Forecast page.

MicroTech Medical Wins Brazil Approval for LinX Glucose Monitoring System

MicroTech Medical (Hangzhou) Co., Ltd. announced that its LinX continuous glucose monitoring system, the international brand name of AiDEX X, has received market approval in Brazil for use in both adults and children. Given Brazil’s status as a core Latin American market with about 16.62 million people living with diabetes and annual diabetes-related healthcare spending of roughly USD45.1 billion, this regulatory green light is expected to significantly enhance the company’s presence in the region, underpin the scaled expansion of its international business and support future revenue growth, though the company cautions that sales and income remain subject to market conditions.

The most recent analyst rating on (HK:2235) stock is a Hold with a HK$6.50 price target. To see the full list of analyst forecasts on MicroTech Medical (Hangzhou) Co., Ltd. Class H stock, see the HK:2235 Stock Forecast page.

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.

The most recent analyst rating on (HK:2235) stock is a Hold with a HK$6.50 price target. To see the full list of analyst forecasts on MicroTech Medical (Hangzhou) Co., Ltd. Class H stock, see the HK:2235 Stock Forecast page.

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.

The most recent analyst rating on (HK:2235) stock is a Hold with a HK$6.50 price target. To see the full list of analyst forecasts on MicroTech Medical (Hangzhou) Co., Ltd. Class H stock, see the HK:2235 Stock Forecast page.

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.

The most recent analyst rating on (HK:2235) stock is a Hold with a HK$6.50 price target. To see the full list of analyst forecasts on MicroTech Medical (Hangzhou) Co., Ltd. Class H stock, see the HK:2235 Stock Forecast page.