Mindray(SZ:300760)2025-06-10 07:30Investment Rating - The report reiterates a "Buy" rating for Shenzhen Mindray, setting a target price of Rmb330, which implies an expected return of 44.8% from the current price of Rmb232.50 [4]. Core Insights - Market interest in Shenzhen Mindray has significantly increased, with investors focusing on long-term growth drivers and anticipating an inflection point soon [1]. - Mindray is currently trading at 21x FY25E P/E, which is 2x standard deviation below its five-year mean of 37x, indicating potential undervaluation [1]. - The company is expected to benefit from AI-assisted Intelli-digital solutions, which will enhance market share and improve margins [3]. - Recurring businesses accounted for 44% of Mindray's revenue in FY24, with strong growth expected in various segments, including minimal invasive surgery and IVD [6]. Summary by Sections Investor Day Preview - The 2025 Investor Day will focus on AI solutions and the transformation of recurring business, showcasing Mindray's latest progress in its business strategy [2]. - Key presentations will be made by the Head of R&D and General Managers of Intelli-digital solutions [2]. AI and Digital Solutions - Mindray's "equipment + IT + AI" digital intelligence strategy is expected to differentiate it from competitors and capture market share in high-end hospitals [3]. - The company plans to install IT solutions in over 3,000 tier III hospitals in China within three years, significantly increasing its current installations [3]. - Mindray's overseas business is projected to grow at 15%-20% year-over-year, with current market share in overseas markets being less than 3% compared to approximately 20% in China, indicating substantial growth potential [3]. Recurring Business Growth - The minimal invasive surgery segment recorded a CAGR of 46% from 2019-2024 and is expected to maintain over 30% CAGR going forward [6]. - APT Medical and IVD segments also show strong growth trajectories, with expected CAGRs of over 20% and around 20%, respectively [6].