In 2020, MicroPort recorded a net loss of US$191m, below market expectations but in line with the profit warning. The current and even next 1–2 years’ results may not be the market focus, as we think MicroPort’s value consists primarily of businesses that are currently loss making but have a bright outlook (heart valves, surgical robots and other early-stage projects) and the platform’s incubation and RD capability. We think MicroPort’s value is largely reflected at this price level (Figure 3). We think more catalysts are needed for further share price upside, such as more positive updates on heart valves, surgical robots, and other incubation projects. We cut 2021/22F EPS by 5.4%/5.1%, respectively, to reflect the 2020 results. We raise our TP from HK$35.76 to HK$40.31 based on a sum-of-the-parts valuation mainly because of 1) rolling over to 2022F; and 2) incorporating our latest valuation for CardioFlow.