Mindray(SZ:300760) Jiang Nan Shi Bao·2025-05-20 04:13Core Viewpoint - The domestic medical device market is experiencing rapid growth driven by new infrastructure in healthcare, but concerns about future growth rates have emerged due to local fiscal challenges [1][2]. Group 1: Company Performance and Market Dynamics - Mindray Medical held an online performance briefing on May 16, addressing investor concerns about the impact of local fiscal pressures on hospital equipment procurement [1]. - The company noted that while local fiscal constraints are currently affecting procurement, the issuance of local special bonds has been increasing since Q1 2023, which is expected to alleviate some of these pressures [1]. - Data from Zhongcheng Medical indicates a recovery in monthly bidding for various medical devices since December 2024, although the time from bidding to revenue recognition has significantly lengthened [1]. Group 2: Procurement and Financial Data - In April, the results of the Hainan Province 2024 long-term special bond project for medical equipment procurement showed that 200 ultrasound devices were bid for, with a total budget of 190 million yuan, and Mindray won 7 packages totaling 160 devices for nearly 99 million yuan [2]. - The issuance of medical special bonds, particularly for hospital renovations and equipment procurement, has seen significant growth, with a 42.18% year-on-year increase in March 2025 [2]. Group 3: Long-term Outlook - Mindray Medical remains optimistic about the domestic market, citing long-term trends such as population aging and rising income levels that will drive demand for quality medical resources [2]. - The company is expanding its market reach through internal R&D and external acquisitions, focusing on "equipment + IT + AI" digitalization, and aims to enhance its presence in high-end markets [2]. - Analysts from Huazhong Securities and Puyin International Securities predict a rebound in Mindray's domestic market growth starting in Q3 2023, supported by easing fiscal pressures and the initiation of medical equipment update projects [3].