Mindray(SZ:300760)2024-10-31 23:07Investment Rating - The report maintains a "Buy" rating for the company [1][2]. Core Views - The company achieved a revenue of RMB 29.485 billion in Q1-Q3 2024, representing a year-on-year growth of 7.99%, and a net profit attributable to shareholders of RMB 10.637 billion, up 8.16% year-on-year [2]. - Domestic market revenue is under pressure, while international market revenue continues to grow steadily, with international market revenue increasing by over 18% in Q1-Q3 2024 [2]. - The company’s gross margin for Q3 2024 was 61.69%, a decrease of 5.52 percentage points year-on-year [2]. Summary by Sections Financial Performance - For Q3 2024, the company reported a revenue of RMB 8.954 billion, a year-on-year increase of 1.43%, and a net profit of RMB 3.076 billion, down 9.31% year-on-year [2]. - The company’s revenue for 2024 is projected to reach RMB 42.058 billion, with a growth rate of 20.4% [3]. Market Analysis - Domestic market growth is constrained due to regulatory adjustments and delays in hospital procurement, with domestic revenue growth in Q1-Q3 2024 being less than 2% [2]. - The international market is benefiting from high-end strategic clients and significant growth in seed businesses such as animal healthcare and minimally invasive surgery [2]. Business Segments - The in-vitro diagnostics and medical imaging segments are showing robust growth, with in-vitro diagnostics revenue increasing by over 20% year-on-year [2]. - The life information and support business faced challenges, with a revenue decline of over 10% in Q1-Q3 2024, primarily due to delayed procurement processes [2]. Valuation - Expected net profits for 2024, 2025, and 2026 are projected at RMB 13.927 billion, RMB 16.723 billion, and RMB 20.099 billion respectively, with corresponding EPS of RMB 11.49, RMB 13.79, and RMB 16.58 [2][3].