Morgan Stanley's report stated that after Microport's subsidiary Shanghai Microport Endovascular Medtech(Group)Co.,Ltd. (listed in hong kong 00853.HK, 688016.SH) announced third quarter results, the target price of Microport's H shares was raised from 7.5 yuan to 7.8 yuan, with a 'shareholding' rating. The thoracic/abdominal aortic stent business unit reduced prices by approximately 40% and 20% to 35% at the end user level, with most of the impact expected to be borne by Shanghai Microport Endovascular Medtech(Group)Co.,Ltd. It is expected to transform into a 25% to 30% decrease in its ex-factory price.

However, the bank pointed out that Shanghai Microport Endovascular Medtech(Group)Co.,Ltd.'s efforts to improve operational efficiency will help increase long-term profit margins, with the long-term net profit margin forecast being raised from 23% to about 30%. Therefore, the bank also adjusted the long-term net profit margin forecast for Microport from the original 11% to 12%. The bank maintains the view that Microport can achieve its main operational goals from 2024 to 2026. The bank mentioned that management has promised to narrow losses in the next two years, with a possibility to turn losses into profits of 90 million US dollars by 2026.