SPMI and TE as our preferred plays within this group. See more inside. M | --- | --- | --- | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Company and Industry Overview * **Company**: Shenzhen Mindray (300760.SZ), a leading medical device manufacturer with three product lines: patient monitors and life support (PMLS), in vitro diagnostics (IVD), and medical imaging. * **Industry**: Medical equipment and devices, with a focus on patient monitoring, diagnostics, and imaging. * **Market Position**: Mindray holds a leading position in its three product lines in China and globally, with a strong focus on emerging markets and high-potential fields like endoscopy and animal care. Key Points and Evidence * **2024 Outlook**: Management expects slower tendering and processes of medical equipment to limit major sales rebound in 4Q24. However, they are more confident about the 2025 outlook, driven by overseas growth momentum and domestic growth recovery supported by continuous stimulus. * **Segmental Growth**: * **IVD**: Grew by 21% yoy in 1-3Q24, with overseas business increasing by over 30% yoy. Domestic IVD revenue dropped due to DRG curbing elective cares. * **Medical Imaging**: Grew by 11% yoy in 1-3Q24, benefiting from Resona A20 gaining more market share. * **Patient Monitoring & Life Support**: Dropped by 12% yoy in 1-3Q24, with overseas markets growing by over 10% yoy. * **Overseas Business**: Outperformed with 18%+ yoy growth in 1-3Q24, driven by strong growth in European and APAC markets. Mindray plans to place local manufacturing sites in 13 countries. * **Emerging Businesses**: Minimally invasive surgery, animal health, and cardiovascular products are expected to grow strongly in 2025. * **Valuation**: Citi Research reduced revenue forecasts for FY24/25/26E by 7%/8%/8% and EPS estimates by 8%/8%/9% due to delayed medical equipment upgrade pace in China. Target price lowered to Rmb385 from Rmb420 based on SOTP model. * **Rating**: Citi Research maintains a "Buy" rating on Mindray, considering its leading position in its product lines and potential for growth in emerging markets. Additional Important Points * **Geopolitical Risks**: Potential impact on revenue sources, investments, or global raw materials sourcing due to geopolitical tensions. * **GPO Impacts**: Adverse impacts from GPO if product prices are significantly reduced and volume ramp-up cannot offset price decreases. * **Regulatory Challenges**: Potential harm to business and competitive positions if Mindray is unable to obtain patent protection for certain products or technologies. * **Market Demand**: Adverse impact on financial condition if Mindray is unable to accurately assess technological trends and customer needs. * **Supply Chain Disruptions**: Potential delays in manufacturing and assembly processes and negative impact on business due to interruptions in material or component supplies. * **Distribution Network Disruptions**: Negative impact on the company's ability to effectively sell products.

Industry Investment Rating - The report highlights a shift in mobile gaming consumer behavior, with 32% of spending users and 41% of high-value spenders planning to reduce in-game spending in 2024 due to more cost-conscious decision-making [4] Core Insights - Mobile gaming consumers are becoming more selective with their spending, driven by economic pressures and a focus on discretionary spending [4] - Personalized offers and discounts are effective strategies to encourage in-app purchases (IAP), with 33% of consumers stating they would spend if presented with a worthwhile offer, and 40% increasing spending when receiving personalized offers [5] - Social factors influence game installations but have less impact on spending decisions, with 69% of spenders stating social factors do not influence their spending [6] - Loyalty programs are a powerful tool to attract consumers, with 79% of consumers participating in multiple loyalty programs and 51% increasing in-game spending if rewarded with additional points or currency [7] - Ad engagement relies on relevant and authentic gameplay, with 72% of mobile consumers interested in ads featuring engaging gameplay but frustrated by misleading ads [8] Consumer Behavior Analysis - Casual Candace, a consumer persona, spends primarily on match, puzzle, and simulation games, with 81% being female and 37% aged 35-44 [11] - Midcore Mike, another persona, spends on strategy, action, shooter, and RPG games, with 61% being male and 36% aged 35-44 [14] - Lucky Lucy, a third persona, spends on social casino games, with 71% being female and 41% aged 35-44 [16] - 39% of consumers spend on only one game monthly, while 50% spend on 2-3 games, with high-value consumers typically spending on more games [19] - 37% of consumers make 1-2 purchases monthly, while 54% of high-value consumers make 3 or more purchases monthly [19] Acquisition and Engagement Strategies - Paid ads remain foundational for game discovery, with 26% of consumers engaging with ads that attract them, driven by relevant gameplay (72%) and eye-catching visuals (32%) [24] - 73% of consumers installed at least one game through referrals in the past year, with 31% installing three or more games [24] - Loyalty programs and lifecycle email marketing are effective strategies to enhance engagement and reduce negative purchase experiences, with 50% of consumers more likely to spend if rewarded with redeemable points or currency [36] Future of Mobile Gaming Spending - Economic challenges and inflation are expected to significantly impact mobile gaming spending in 2024, with many consumers planning to reduce spending [46] - Publishers need to adopt innovative IAP strategies, including customized offers, robust loyalty programs, and new lifecycle marketing channels, to encourage sustained investment from players [48] - A shift towards direct-to-consumer (DTC) e-commerce platforms may further increase revenue opportunities for top publishers by up to 25% [48]