Mindray(SZ:300760) Sou Hu Cai Jing·2025-10-19 07:54Core Viewpoint - Mindray Medical aims to become a top 10 global medical device company by 2030, but it needs a clearer development strategy and solid performance to address market skepticism [2][34]. Group 1: Financial Performance - On October 14, Mindray Medical announced plans to issue H-shares and list on the Hong Kong Stock Exchange, with expectations to raise at least $1 billion [4]. - The company reported its worst interim results since its A-share listing, with revenue of 16.743 billion yuan in H1 2025, a year-on-year decline of 18.45%, and a net profit of 5.069 billion yuan, down 32.96% [4]. - Domestic business saw a significant downturn, while international revenue growth has slowed [4][18]. Group 2: Market Challenges - The company faces challenges in its domestic business, with management stating that the most difficult times are believed to be over [5]. - The shift in the market has led to a decline in revenue across all major product lines, with the in-vitro diagnostics (IVD) segment experiencing a revenue drop of 16.11% in H1 2025 [12][18]. - Price competition has intensified, with Mindray winning bids at significantly lower prices compared to previous years, impacting overall profitability [16][18]. Group 3: Strategic Goals and Leadership - Founder Li Xiting, at 74 years old, is increasingly active in pursuing the company's ambitious goals, including a target to enter the global top 10 by 2030 [29][33]. - The previous goal of entering the top 20 by 2025 has been reiterated, with a need for a revenue growth rate of at least 38.5% to achieve this [30][31]. - Li has mentioned potential successors within the company but has not provided a clear retirement plan [32]. Group 4: International Expansion and Acquisitions - Mindray's international business has shown some growth, with a 5.39% increase in overseas revenue in H1 2025, now accounting for 49.8% of total revenue [18][24]. - The company has pursued a strategy of acquisitions to enhance its market position, including significant purchases in the IVD sector [20][22]. - However, the growth momentum in international markets is slowing, with a notable decrease in growth rates compared to previous years [24][25].