迈瑞医疗：Robust performance in a challenging industry environment

Investment Rating - The report maintains a "BUY" rating for Mindray, indicating a potential return of over 15% over the next 12 months [2][13]. Core Insights - Mindray achieved a revenue of RMB20.5 billion in 1H24, reflecting an 11.1% year-over-year increase, and reported an attributable net profit of RMB7.6 billion, up 17.4% YoY [2]. - Despite challenges in the healthcare industry, including regulatory adjustments and delays in medical equipment renewals, the company demonstrated resilience through growth in its IVD business and high-end ultrasound products [2]. - The gross margin increased by 0.7 percentage points YoY to 66.3% in 1H24, driven by the rising revenue share from IVD reagents and high-end ultrasound sales [2]. - A mid-term dividend plan was announced, with a total cash dividend of approximately RMB4.9 billion, representing a payout ratio of over 65% [2]. Revenue Performance - The domestic equipment business faced a 12% YoY revenue decline in 1H24 due to cautious bidding and procurement activities in public hospitals [2]. - The Patient Monitoring and Life Support (PMLS) segment saw a 7.6% YoY revenue decrease, with domestic revenue dropping by about 20% [2]. - The Medical Imaging segment experienced a 15.5% YoY revenue growth, attributed to increased sales of high-end ultrasound products, which grew by over 40% [2]. Business Shift - The IVD reagent business grew by 28% YoY to RMB7.7 billion, accounting for over 37% of total revenue, with domestic IVD revenue increasing by over 25% [2]. - The minimally invasive surgery business grew by 90% YoY in 1H24, and the acquisition of APT Medical enhanced Mindray's cardiovascular consumables offerings [2]. - Consumables-related businesses, led by IVD, now account for over 50% of the company's domestic revenue [2]. Financial Projections - Revenue projections for FY24E, FY25E, and FY26E are RMB40.6 billion, RMB48.8 billion, and RMB57.4 billion, respectively, with expected YoY growth rates of 16.3%, 20.2%, and 17.7% [3][10]. - Adjusted net profit estimates for FY24E, FY25E, and FY26E are RMB13.6 billion, RMB16.2 billion, and RMB19.1 billion, with YoY growth rates of 19.3%, 19.0%, and 17.4% [3][10]. - The target price is adjusted to RMB352.84, reflecting a 40.7% upside from the current price of RMB250.80 [2][3].