MCRPF - MicroPort Scientific: Growth From New Products Overshadowed By Policy Risks And M&A Integration
Elevator Pitch
Hong Kong-listed medical device manufacturer MicroPort Scientific Corporation (MCRPF) [853:HK] is a long-term play on growing healthcare demand with its dominant coronary stent products and other new products in the pipeline. The stock's 32.7 times consensus forward FY2020 P/E is not only cheap but also reasonable for medical device companies which are typically valued at high double-digit P/E multiples.
However, there could be better entry opportunities considering that there are policy risks associated with more provinces in China adopting centralized procurement practices and the earnings drag from the loss-making cardiac rhythm