Mindray(SZ:300760) Xinda Securities·2024-10-31 00:48Investment Rating - The investment rating for Mindray Medical (300760) is not explicitly stated in the provided content, but the report indicates a positive outlook based on growth projections and market performance. Core Views - The report highlights that Mindray Medical achieved a revenue of 29.485 billion yuan in the first three quarters of 2024, representing a year-over-year increase of 7.99%. However, the revenue growth in Q3 was slower at 1.43% year-over-year, primarily due to domestic market pressures from procurement delays and funding constraints in hospitals [1]. - The international market showed robust growth, with an 18.6% increase in Q3 2024, driven by high-end strategic clients and breakthroughs in large sample laboratories [1]. - The IVD product line has become the largest revenue contributor, with a 20.9% year-over-year increase, benefiting from local production and market share gains in domestic diagnostics [1]. Summary by Sections Financial Performance - For the first three quarters of 2024, Mindray Medical reported total revenue of 29.485 billion yuan, with a net profit of 10.637 billion yuan, reflecting an 8.16% year-over-year increase. The Q3 revenue was 8.954 billion yuan, with a net profit of 3.076 billion yuan, showing a decline of 9.31% year-over-year [1]. - The report projects revenues for 2024-2026 to be 40.023 billion, 47.647 billion, and 55.951 billion yuan, with year-over-year growth rates of 14.6%, 19.0%, and 17.4% respectively [2]. Market Dynamics - The domestic market is currently facing challenges due to regulatory adjustments and procurement delays, while the international market is thriving, particularly in Europe, Asia-Pacific, and Latin America, with growth rates of approximately 30%, 30%, and 25% respectively [1]. - The report emphasizes that as domestic procurement activities gradually recover, the demand for medical equipment is expected to rebound, leading to a faster growth trajectory for the company [1]. Profitability and Margins - The gross profit margin for Q3 2024 was reported at 61.69%, with expectations for improvement as the IVD consumables business grows and high-end customer segments expand [1]. - The report indicates that the company’s operating expenses are being optimized, with a sales expense ratio of 8.15% and a management expense ratio of 3.31% [1]. Valuation Metrics - The projected earnings per share (EPS) for 2024-2026 are 11.01 yuan, 13.23 yuan, and 15.70 yuan, with corresponding price-to-earnings (P/E) ratios of 24.57, 20.45, and 17.23 [3].