Citi's Coverage on MICROPORT: Citi has reinitiated coverage on MICROPORT (00853.HK) with a Buy rating and a target price of HKD16, highlighting the company's improving fundamentals.

Financial Performance: The report noted a significant reduction in MICROPORT's net loss by 66% year-over-year in the first half of 2025, with expectations of a turnaround in the second half.

Post-Merger Synergies: Citi emphasized that the synergies from recent mergers will contribute to the company's potential for growth.

Market Activity: As of January 7, 2026, short selling activity for MICROPORT was reported at $7.25 million, with a short selling ratio of 5.017%.

BofA Securities Rating: BofA Securities has reaffirmed its Buy rating for MICROPORT (00853.HK), highlighting a favorable risk-reward profile for the company.

Growth Potential: The company is expected to see significant growth from its surgical robotics business, projected to contribute 19% of total revenue by 2034.

Revenue Forecast Adjustment: The broker has raised its total revenue forecast for MICROPORT for the years 2026-2034 by 0.1-1.5%.

Target Price Increase: The target price for MICROPORT has been increased from HKD16.8 to HKD17.

Market Performance: The Hang Seng Index (HSI) fell by 128 points (0.5%) to 26,829, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines, with market turnover reaching $173.80 billion.

Active Heavyweights: Major stocks like Meituan, Alibaba, and Tencent saw declines, with short selling ratios indicating significant market activity, while companies like Longfor and Baidu experienced notable drops in their stock prices.

Top Gainers: CGN Mining, SD Gold, Jiangxi Copper, and Microport were among the top gainers, each hitting new highs, with substantial increases in their stock prices and relatively low short selling ratios.

Short Selling Trends: The short selling data revealed high activity in several stocks, with notable ratios for companies like CCB and Longfor, indicating investor sentiment and market volatility.

Restructuring and Acquisition: MICROPORT is restructuring its CRM business, with its subsidiary CARDIOFLOW-B issuing new shares to acquire Cardiac Rhythm Management (CRM) for USD680 million, resulting in a decrease of MICROPORT's stake in CARDIOFLOW-B from 46.12% to 44.45%.

Financial Improvements: The refinancing of CRM will reduce interest expenses significantly, aiding MICROPORT in its goal to lower its debt ratio from 70% to around 50% in 1-3 years and further to 30-35% in 3-5 years, while Morgan Stanley views this as a crucial cleanup event for the company.

MicroPort's Stock Performance: MICROPORT (00853.HK) saw a 7.94% increase in its stock price, reaching HKD14.14, following the announcement of a restructuring in its CRM business, with a trading volume of 22.628 million shares.

CARDIOFLOW-B Merger Announcement: CARDIOFLOW-B (02160.HK), a subsidiary of MICROPORT, is set to acquire CRM Cayman through a merger, issuing new shares at a premium price of HKD1.35 to its shareholders, which also includes MicroPort International Corp.