Mindray(SZ:300760) Guotou Securities·2024-09-02 15:30Investment Rating - The report maintains a "Buy-A" investment rating with a 6-month target price of 344.84 CNY [4][12] Core Views - The company achieved steady revenue growth in H1 2024, with total revenue reaching 20.53 billion CNY, a year-on-year increase of 11.12%, and net profit of 7.56 billion CNY, up 17.37% [1] - The company’s cash flow from operating activities saw a significant increase of 89.51%, amounting to 8.49 billion CNY [1] - The report highlights the strong growth potential in the company's various business segments, particularly in consumables and international markets [2][3][9] Summary by Sections Financial Performance - In H1 2024, the company reported a gross margin of 66.25%, an increase of 0.65 percentage points year-on-year, and a net profit margin of 36.9%, up 2.03 percentage points [1] - For Q2 2024, the company achieved a revenue of 11.16 billion CNY, a 10.35% increase year-on-year, and a net profit of 4.4 billion CNY, reflecting a 13.69% growth [1] Business Segments - Life Information and Support: Revenue decreased by 7.59% to 8.01 billion CNY due to delayed procurement activities, but future demand remains strong with a market potential of over 24 billion CNY [2] - In Vitro Diagnostics: This segment saw a revenue increase of 28.16% to 7.658 billion CNY, driven by a growth of over 30% in chemiluminescence business [3] - Medical Imaging: Revenue grew by 15.49% to 4.27 billion CNY, with high-end ultrasound products showing over 40% growth [9] Market Outlook - The report indicates that the domestic market for medical infrastructure is expected to release pent-up demand, with a total market space of over 24 billion CNY [2] - The international market is recovering, with the company expanding its presence in high-end hospitals across various countries, leading to double-digit growth in international sales [2] Strategic Initiatives - The company is advancing its digital transformation by integrating AI with its medical solutions, which has generated approximately 4.5 billion CNY in sales over the past three years [10] - The acquisition of Huatai Medical is expected to enhance the company's capabilities in the cardiovascular field, tapping into a market projected to reach 56 billion USD globally [11]