MCRPF - MicroPort Scientific: Paying A Hefty Premium For Growth
Elevator Pitch
I maintain my "Neutral" rating on Hong Kong-listed medical device manufacturer MicroPort Scientific Corporation (OTCPK:MCRPF) [853:HK].
MicroPort Scientific has revised the company's revenue growth guidance for FY2020 downwards as a result of the coronavirus pandemic. MicroPort Scientific currently trades at 208 times consensus forward FY2020 P/E and 114 times consensus forward FY2021 P/E, which implies that investors are paying a hefty premium for the company's future growth potential.
On the flip side, new products and corporate actions could be the catalysts for a further positive valuation re-rating for the company's shares.