Morgan Stanley has released a research report indicating adjustments to its outlook for WEIGAO GROUP (01066).
The investment bank has lowered its revenue forecasts for the company for the 2026 to 2028 period by 1% to 2% to reflect ongoing headwinds from Volume-Based Procurement (VBP) and increased competition in the conventional consumables business, as well as the impact of recent policies on the orthopedics segment. As a result, overall revenue is expected to see only low single-digit growth.
Morgan Stanley has also reduced its earnings per share (EPS) estimates for WEIGAO GROUP for the 2026 to 2028 fiscal years by 11.8%, 12.6%, and 13.5%, respectively. Consequently, the price target has been slashed from HK$5.2 to HK$4.5, while the broker continues to assign a "Market Perform" rating to the stock.
The report notes that these revisions account for the challenging market environment and policy impacts currently facing the company's core business segments.
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