COFOE MEDICAL TECHNOLOGY / COFOE MEDICAL TECHNOLOGY - H : Overseas expansion and mix upgrade to open growth frontiers

研报英文原文证据摘录

COFOE MEDICAL TECHNOLOGY / COFOE MEDICAL TECHNOLOGY - H : Overseas expansion and mix upgrade to open growth frontiers

ce for Cofoe-H, based on our earnings forecasts and

a DCF-based valuation methodology, which factors in a discount rate of 9.71% and a

terminal growth rate of 3%. We believe the DCF model is appropriate to value Cofoe

because it not only captures long-term growth value, but also captures the impact of key

operational metrics for the medical device manufacturing and sales business, such as

working capital changes and capex plans, on cash flows and valuation.

We derive our RMB70 target price for Cofoe-A, based on a target H/A discount of 39%,

which is in line with the average H/A discount for A/H dual listed companies in the

healthcare sector as of 01 June 2026.

Our Cofoe-A target price implies a 36x 2026E P/E, higher than A-share listed peers’

median of 20x. We view this valuation premium as justified given Cofoe’s projected

earnings growth (22% CAGR) over 2025-28 is far above A-share peers’ median 11%

CAGR of net profits during the same period (as per Wind consensus). Our target price

implies 1.6x 2026E PEG, as compared to peers’ median PEG of 1.8x.

Our Cofoe-H target price implies a 22x 2026E P/E, higher than HK and overseas listed

peers’ median of 18x. We also consider this valuation premium as justified given Cofoe’s

projected earnings growth (22% CAGR) over 2025-28 is higher than its HK and overseas

listed peers’ median 16% CAGR of net profits during the same period (as per Wind and

Bloomberg consensus). Our target price implies 1.0x 2026E PEG, as compared to peers’

median PEG of 1.2x.

We believe company-specific risks to our forecasts and estimated valuation, include

potential unsuccessful new product launches, high dependency on e-commerce