2021.09.01
■ In 1H21, Microport recorded a net loss of US$90m, in line with its previous profit warning.
■ We think the surgical robot segment is worth ~Rmb43.5bn.
■ We think MicroPort’s earnings visibility in the next few years has relatively high uncertainty, especially its laparoscopic surgical robot. We think further share price upside requires more catalysts, such as permit increases for surgical robot deployment and any other incubation project updates.
■ We cut our expected 2021/22/23F EPS to loss making primarily to reflect higher-than-expected R&D expenses. We lower our TP from HK$54.77 to HK$50.32 (SOTP based, Figure 1) mainly to reflect surgical robot uncertainties.
