Mindray(SZ:300760) ZHESHANG SECURITIES·2024-11-04 05:23Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company's domestic revenue has shown fluctuations, but this does not alter its long-term investment value. The international market has demonstrated strong growth, particularly in high-end strategic clients and emerging business lines [3][4] Summary by Relevant Sections Performance Analysis - For Q1-Q3 2024, the company reported revenue of 29.48 billion yuan, a year-over-year increase of 8.0%. The net profit attributable to shareholders was 10.64 billion yuan, up 8.2% year-over-year. Excluding foreign exchange gains and losses, the growth rate was 11%. The net profit after deducting non-recurring items was 10.44 billion yuan, reflecting a year-over-year increase of 7.8% [2] Growth Potential - Domestic market growth for the first three quarters was 1.9%, with a significant decline of 9.7% in Q3. The public hospital bidding process is operating at a low level, and non-essential medical demand is weak, putting pressure on the domestic market. Conversely, the international market grew by 18.3% in the first three quarters, with Q3 growth at 18.6%, driven by high-end strategic clients and significant breakthroughs in laboratory services [3] - The in-vitro diagnostics segment grew by 20.9%, accounting for 39% of total revenue, surpassing the life information and support segment. The chemical luminescence business grew over 20%. The international in-vitro diagnostics segment saw over 30% growth, with nearly 90 third-party laboratory breakthroughs in Q1-Q3 [3][4] Profitability Analysis - For Q1-Q3 2024, the company's gross margin was 64.9%, a decrease of 1.2 percentage points year-over-year. The net profit margin was 36.3%, an increase of 0.3 percentage points year-over-year. The operating cash flow for the same period was 11.07 billion yuan, a year-over-year increase of 42.5% [5][8] Earnings Forecast and Valuation - Due to the slowdown in domestic bidding affecting Q3 performance, the earnings forecast has been slightly adjusted downward. However, the company is expected to maintain stable growth from 2024 to 2026, with projected EPS of 10.53 yuan, 12.76 yuan, and 15.38 yuan for 2024, 2025, and 2026 respectively. The current stock price corresponds to a PE ratio of 25.3 for 2024 [9][10]