Risk Reward Update

Research evidence excerpt

Risk Reward Update

UpdateM

RiskRisk RewardReward– Peijia Medical- PeijiaLtdMedical(9996.HK) Ltd (9996.HK)

Solid Product Quality, Broadening and Dedicated Pipeline, Commercial Execution

PRICE TARGET HK$8.60 OVERWEIGHT THESIS

We use a discounted cash flow methodology, assuming a WACC of 11.0% and terminal ▪Our OW rating on Peijia reflects its solid

growth of 3.5%. Our model starts from 2026. product quality, broadening and dedicated

pipeline, and consistent commercial HK$9.47

execution

Consensus Price Target Distribution HK$8.13 HK$10.70 has one of the most complete MS PT ▪It

transcatheter heart valve therapeuticSource: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates

portfolios, including next-gen TAVR for AR,

TMVR/r and TTVR, including several

potential blockbusters to be commercialized

RISK REWARD CHART in 2026-28

▪Our near-term estimates reflect high R&D

costs and milestone payments – necessary

HKD to support sustained growth

continue to expect breakeven in 2026 HK$15.00HK$15.00(+273.13%)HK$15.00(+273.13%)(+273.13%) ▪We

16 ▪The stock offers attractive upside on our

bull/base case scenario values, with clinical-

stage pipeline and potential overseas

12 opportunities not fully priced in

HK$8.60HK$8.60(+113.93%)HK$8.60(+113.93%)(+113.93%) Consensus Rating Distribution 8

100%Overweight

0% Equal-weight

4 HK$4.02HK$4.02HK$4.02

0% Underweight

HK$3.60HK$3.60(-10.45%)HK$3.60(-10.45%)(-10.45%) MS Rating

0 Source: Refinitiv, Morgan Stanley Research

AUG '25 FEB '26 AUG '26 AUG '27

Key: Historical Stock Performance Current Stock Price Price Target

Risk Reward Themes

Source: Refinitiv, Morgan Stanley Research

Secular Growth: Positive

Self-help: Positive

View descriptions of Risk Rewards Themes here

BULL CASE HK$15.00 BASE CASE HK$8.60 BEAR CASE HK$3.60