JPMorgan: Raises MicroPort Robotics-B’s target price to HKD 42; rating “Buy (Increase holdings)”

J.P. Morgan Chase released a research report saying it raised its gross margin assumptions for MicroPort Robotics-B (02252) for 2026 to 2028 by 5 to 6 percentage points, while maintaining its revenue forecast for MicroPort Robotics for 2026 at RMB 1.4 billion (above market consensus). The target price was raised from HKD 41 to HKD 42, with an “Overweight” rating, and it is the top stock pick in the medical technology sector.

The report said that MicroPort Robotics’ 2026 fiscal year guidance clearly marks a shift from “commercialization validation” to “profit release.” Management has set clear targets for revenue, profitability, and cash flow. The company expects this year’s revenue to be about RMB 1.1 billion (same applies below), nearly doubling year-on-year, while achieving a break-even on net profit to profitability and positive free cash flow, indicating it has entered an operating leverage phase.

The firm stated that as of early April, the company has installed 23 Tianmi surgical robots and has 86 orders on hand. Management guided that it will install approximately 103 to 113 units in the first half of the year, at least 200 units for the full year, and showed that the delivery bottleneck in the second half of last year has been resolved. Overseas markets will continue to be the core growth engine, with demand across Europe, Asia (excluding China), and Latin America.

In addition, the firm reiterated its “Overweight” rating for Mindray Medical (300760.SZ) and MicroPort Medical (00853); it gave Heartware Medical (688016.SH) a “Neutral” rating, and a “Sell” rating to Micro-electrophysiology (688351.SH). The firm said MicroPort Medical has a diversified platform layout. It expects this year’s net profit portion to be supported by non-recurring items. Even if MicroPort Robotics’ revenue growth accelerates;

MicroPort Medical’s fundamentals are improving, and it expects a gradual improvement in the quality of profitability. Xiaomo lowered its target price for MicroPort Medical from HKD 18.2 to HKD 18.

(Editor: Zhang Xiaobo )

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