In a year when elective procedure volumes fell 20% or more due to the COVID-19 pandemic, Mauna Kea (“MKEA”) reported FY2020 sales of €6.5m; down 12% YoY. Systems and services sales grew 12% and 16% YoY respectively, whilst consumables sales fell by 32%, reflecting the global drop in procedure volumes in 2020. A positive recovery was evident across all geographies in H2/2020 with Q4/2020 sales increasing 41% YoY to €2.4m, driven by contributions of €1.3m (+44%) from the US, €0.7m (+34%) in APAC and €0.5m (+42%) in Europe. We remain optimistic for 2021E and beyond, highlighting the resilience of MKEA’s US pay-per-use ("PPU") strategy and Cellvizio's focus on ambulatory centres which have been less affected by the pandemic. A global recovery in capital equipment sales should also continue to provide tailwinds. We maintain both our OUTPERFORM recommendation and target price ("TP") of €3.10.
