Mindray(SZ:300760)2024-09-02 08:41Investment Rating - The report maintains a "Buy" rating for the company with a target price adjusted to RMB 350 [1][2][16]. Core Views - The company's revenue growth in 1H24 is slightly weak, primarily due to domestic business being impacted by industry restructuring, while overseas business continues to grow steadily [1]. - The company announced an interim dividend of RMB 4.06 per share, with a dividend payout ratio of 65%, indicating an intention to gradually increase the cash dividend ratio [1][2]. - The performance in 2H24 is expected to depend significantly on the progress of policy implementation regarding equipment updates, with a forecasted revenue growth of 17% for 2024 [1][2]. Summary by Sections Financial Performance - 1H24 revenue increased by 11% year-on-year, with domestic revenue growing by 7% and overseas revenue by 18% [1]. - The gross profit margin for 1H24 improved by 0.7 percentage points year-on-year, while net profit attributable to shareholders increased by 17% year-on-year [1][6]. - The company expects a revenue increase in 2H24 due to a low base from the previous year, despite the ongoing impact of industry restructuring [1][2]. Business Segments - In 1H24, revenue from life information and support decreased by 8%, while in vitro diagnostics and medical imaging revenues increased by 28% and 16%, respectively [1][6]. - The trend observed in 2Q24 continued from 1Q24, with overseas performance outpacing domestic results, and consumables performing better than equipment sales [1][6]. Dividend and Shareholder Commitment - The company has committed to not reducing shareholdings by major shareholders for the next six months, reinforcing confidence in its dividend policy [1][2]. - The interim dividend reflects a commitment to returning value to shareholders, with a current dividend yield of 1.8% based on the announcement date's closing price [1][2]. Future Outlook - The revenue growth for the full year is expected to be heavily influenced by the approval process for equipment update projects, with a more significant impact anticipated in 2025 [1][2]. - The company is projected to achieve a revenue of RMB 40.77 billion in 2024, with a year-on-year growth rate of 16.7% [6][7].