Morgan Stanley released a research report stating that after shanghai microport endovascular medtech(group)co.,ltd. (688016.SH), a subsidiary of microport (00853), announced its third-quarter performance, the target price of microport's H shares was raised from HK$7.5 to HK$7.8 with a 'shareholding' rating. The brackets business unit's thoracic/abdominal aortic brackets reduced prices by around 40% and 20-35% at the end-user level. It is expected that shanghai microport endovascular medtech(group)co.,ltd. will bear most of the impact, leading to a 25-30% decrease in its ex-factory prices.

However, the bank pointed out that shanghai microport endovascular medtech(group)co.,ltd.'s efforts to improve operational efficiency will help long-term profit margins. The long-term net income forecast has been significantly raised from 23% to around 30%. Therefore, the bank has also adjusted microport's long-term net income forecast from the original 11% to 12%. The bank maintains the view that microport can achieve its main operational targets between 2024 and 2026. The bank mentioned that the management had promised to narrow losses in the next two years and is expected to turn a profit of $90 million in 2026.