Mindray(SZ:300760) Minsheng Securities·2024-09-12 12:11Investment Rating - The report initiates coverage with a "Buy" rating for the company [2]. Core Views - The company has established a comprehensive product line in the medical device industry, leveraging a dual strategy of self-research and external acquisitions to drive growth. The aging population and supportive policies are expected to expand market demand, allowing the company to maintain high growth rates even with a revenue scale of 30 billion RMB [2]. - The company leads in the life information and support sector, with significant market shares in various products, including monitoring devices and anesthesia machines, achieving global top-three positions in certain categories [2]. - The in vitro diagnostics (IVD) business is rapidly increasing its market share due to domestic procurement policies and integrated supply chain strategies, with expectations for further expansion in both domestic and international markets [2]. - The medical imaging segment is transitioning from low-end to high-end products, with a projected CAGR of 5.0% for the ultrasound market in China, indicating strong growth potential [2]. - Emerging sectors, including minimally invasive surgery and animal healthcare, are being cultivated, contributing to new revenue streams for the company [2]. - Valuation analysis indicates that the company is currently undervalued compared to historical levels and peers, suggesting potential for price appreciation [2]. Summary by Sections Company Overview - Founded in 1991, the company has developed a full product line in the medical device sector, focusing on safety, efficiency, and ease of use to meet clinical needs [7]. Core Business Segments - Life Information and Support: The company has achieved leading positions in various product categories, with significant breakthroughs in high-end customer penetration [36]. - In Vitro Diagnostics: The company is expanding its market share through domestic procurement policies and has integrated its supply chain to enhance competitiveness [45]. - Medical Imaging: The company is focusing on high-end ultrasound products, with a current market share of approximately 24% in China and 8% globally [2][36]. Emerging Sectors - The company has been developing new business areas since 2012, including minimally invasive surgery and animal healthcare, which are expected to contribute to future growth [2]. Financial Projections - Revenue forecasts for 2024-2026 are 41.17 billion, 49.17 billion, and 58.60 billion RMB, with corresponding growth rates of 17.8%, 19.4%, and 19.2% [3]. - Net profit forecasts for the same period are 13.63 billion, 16.38 billion, and 19.75 billion RMB, with growth rates of 17.7%, 20.2%, and 20.6% [3]. Valuation Analysis - The company's current PE ratio is at historical lows, indicating a favorable investment opportunity compared to its market position and growth prospects [2].