FAST NEWS: MicroPort Scientific loss narrows on market share increase

The Latest: MicroPort Scientific Corp. (0853.HK) issued a positive profit alert on Monday, forecasting a 17% increase in revenue for the first half of this year, showing a significant decrease in net loss.

Looking Up: The company said its revenue growth benefited from the further increase in market share driven by the commercialization of its leading products, the incremental revenue generated from new products’ contribution and the rapid growth from overseas sales as a result of the continuous expansion of its  global business.

Take Note: The company’s progress in launching new products may be affected by its stringent control and reduction of research and development and overhead expenses, as well as its continuous cost control efforts.

Digging Deeper: Established in 1998, MicroPort Scientific’s business mainly covers cardiovascular interventional products, orthopedic medical devices, diabetic and endocrine medical devices, and neurological interventional products. The company was listed on the Hong Kong Stock Exchange in September 2010, operating at a loss since 2020, and has been expanding over the past four years. As a result of the tight financial situation, it announced in April it had obtained financing and borrowings totaling approximately $500 million from Hillhouse Capital and other financial institutions to repay the convertible bonds that were due to mature soon.

Market Reaction: MicroPort Scientific’s shares rose – then fell – on Tuesday morning, closing down 1.3% at HK$5.27 by the midday break. The stock now trades near the lower end of its 52-week range.

Translation by A. Au

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