Mindray(SZ:300760) Haitong Securities·2024-11-06 01:57Investment Rating - The investment rating for the company is "Outperform the Market" [2] Core Views - The company reported Q3 2024 revenue of 8.954 billion yuan, a year-on-year increase of 1.43%, while net profit attributable to shareholders was 3.076 billion yuan, a year-on-year decrease of 9.31% [5] - For the first three quarters of 2024, the company achieved revenue of 29.485 billion yuan, a year-on-year increase of 7.99%, and net profit attributable to shareholders of 10.637 billion yuan, a year-on-year increase of 8.16% [5] - The company's international market grew by 18.3% year-on-year in the first three quarters, with Q3 growth at 18.6%, driven by high-end strategic clients and significant breakthroughs in various sectors [6] - The domestic market faced pressure with a 1.9% year-on-year growth in the first three quarters and a 9.7% decline in Q3 due to weak demand [6] - The company is expected to have EPS of 10.87, 13.00, and 15.59 yuan for 2024-2026, with net profit growth rates of 13.8%, 19.6%, and 19.9% respectively [6] Financial Performance Summary - Q3 2024 gross margin was 61.69%, down 5.52 percentage points year-on-year, and net profit margin was 34.92%, down 3.51 percentage points year-on-year [5] - The company’s operating expenses as a percentage of revenue decreased for sales and management but increased for R&D and financial expenses [5] - The forecast for total revenue is 37.481 billion yuan in 2024, with a projected growth rate of 7.3% [11] - The company’s net profit is expected to reach 13.180 billion yuan in 2024, reflecting a growth rate of 13.8% [11] Valuation - The company is assigned a PE ratio of 25-30 for 2024, corresponding to a reasonable value range of 271.77 to 326.13 yuan per share [6] - The average PE ratio for comparable companies is noted, with the company positioned favorably within the medical device sector [10]