FAST NEWS: MicroPort Scientific’s Shanghai Unit Posted Up to 50% Profit Growth Last Year
The latest: Medical device maker MicroPort Scientific Corp. (0853.HK) said late on Monday that its 46%-owned subsidiary, Shanghai MicroPort Endovascular MedTech (Group) Co. Ltd. (688016.CN), will record a 40% to 50% profit increase for 2021.
Looking up: Shanghai MicroPort’s revenue from its overseas business grew rapidly as the company increased its efforts in the international market.
Take Note: MicroPort Scientific said recurrences of Covid-19 have affected heart-related surgeries, which could affect Shanghai MicroPort’s future sales, in turn affecting its own revenue and earnings performance.
Digging Deeper: Shanghai MicroPort makes arterial and peripheral vascular interventional products, and was spun off from MicroPort Scientific to list on Shanghai’s Nasdaq-style STAR Market in 2019. While the Shanghai unit is profitable, the parent company lost money in the first half of last year. The Shanghai unit’s net profit for the first nine months of 2021 rose 53.9% year-over-year. Thus, its profit will help MicroPort Scientific to narrow its loss for last year. The company has also received approval from the National Medical Products Administration to market two innovative products in the last two months for complex cardiac surgical treatments, which should provide an important new revenue source.
Market Reaction: Despite the positive report, MicroPort Scientific’s shares fell by 4.3% on Tuesday morning. They pared the losses later, and closed down 2.2% at HK$26.15 at the midday break.
Translation by Jony Ho
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