Market Insight | AK MEDICAL plunges more than 17%, major downgrade in medical device Q2 performance expectations, company to release earnings by the end of this month
AK MEDICAL's stock price plummeted by over 17% today, with the latest price at HKD 3.58 and a turnover of HKD 51.013 million. Goldman Sachs expects the medical device industry's performance in the second quarter to be weak, lowering the target price and sales forecast for the fiscal years 2024 to 2025. The market is concerned about the impact of changes in medical policies. Despite facing challenges, Ping An Securities believes that AK MEDICAL, as a leading company in the orthopedic joint field, will benefit from the aging trend and is expected to maintain steady growth in the future. The company will release its interim performance on the 28th of this month
According to the Wisdom Finance APP, AK MEDICAL (01789) plummeted by over 17% today, with a drop of 15.96% as of the time of publication, closing at HKD 3.58 with a turnover of HKD 51.013 million.
On the news front, AK MEDICAL is set to release its interim results on the 28th of this month. Goldman Sachs previously issued a report, lowering the target prices of medical-related stocks across the board by an average of about 9% ahead of the second quarter and first half performance season. At the same time, the industry sales estimates for the fiscal years 2024 to 2025 were revised down by 1% to 15% and 1% to 16%. The bank believes that investors will continue to focus on the impact of ongoing anti-corruption efforts in the medical sector, recent centralized procurement policy updates, and the potential stimulus from the trade-in program. Morgan Stanley also pointed out that with the continued anti-corruption efforts in the medical field, the market is expected to anticipate weak second-quarter performance from medical technology companies.
Ping An Securities previously stated that AK MEDICAL is a leading company in the orthopedic joint field, benefiting greatly from the long-term trend of aging and is expected to maintain steady growth. After the renewal of joint contracts, the company's product terminal prices have increased, improving agent profits and continuously enhancing market share; in the first half of the year, joint industry surgeries gradually recovered, with the company achieving its goals in the first half of the year; entering the second half of the year, the company's surgical volume continues to improve marginally, and is expected to maintain a rapid growth trend in the second half of the year; looking at the full year, the guidance completion rate is relatively high, with a corresponding low valuation position, providing a certain cost-performance ratio
