Morgan Stanley has released a research report following a meeting with the management of MICROPORT during a healthcare industry survey in Shanghai. Key discussion points included regulatory updates, robust overseas business momentum, and balance sheet management. The firm maintains its 'In-Line' rating on MICROPORT. Due to slowing liquidity and subdued sector sentiment, the holding company discount has been increased from 30% to 45%, leading to a reduction in the target price from HK$16 to HK$10.5. The bank believes that more definitive evidence confirming an organic, gross margin-driven path to breakeven is needed for a more sustainable valuation re-rating. Management guidance indicates low single-digit growth for the first half of 2026, primarily influenced mildly by inventory clearance and sales representative policies, while reiterating the full-year 2026 target of high single-digit growth. Recent conflicts in the Middle East have disrupted overseas deliveries of MICROPORT's interventional and orthopedic products. Momentum in the surgical robotics business remains positive, with second-quarter growth accelerating compared to the first quarter, primarily driven by overseas markets, while domestic tender conditions are also expected to improve.