Mindray(SZ:300760) HTSC·2025-08-29 11:12Investment Rating - The report maintains a "Buy" rating for the company [7] Core Insights - The company achieved a revenue of 16.743 billion RMB in 1H25, a year-over-year decrease of 18.4%, with a net profit attributable to the parent company of 5.069 billion RMB, down 33.0% year-over-year. The performance is in line with expectations, and the company anticipates a positive revenue growth in 3Q25 [1][5] - The gross margin for 1H25 was 61.7%, a decrease of 2.8 percentage points year-over-year, attributed to short-term external factors in the domestic industry. The company continues to strengthen its sales promotion and R&D investments to enhance competitive barriers [2] - The company has three core business segments with clear long-term growth potential: 1. IVD (In Vitro Diagnostics): 1H25 revenue of 6.424 billion RMB, down 16.1% year-over-year, with international business showing double-digit growth [3] 2. Medical Imaging: 1H25 revenue of 3.312 billion RMB, down 22.5% year-over-year, with international business accounting for 62% of the segment [3] 3. Patient Monitoring & Life Support: 1H25 revenue of 5.479 billion RMB, down 31.6% year-over-year, with international revenue making up 67% [3] Revenue and Market Performance - The company reported overseas revenue of 8.332 billion RMB in 1H25, an increase of 5.4% year-over-year, nearly 50% of total revenue. The company is expanding its high-end customer collaborations and developing markets in developing countries [4] - Domestic revenue for 1H25 was 8.411 billion RMB, down 33.4% year-over-year, primarily due to extended revenue recognition cycles from industry tenders. The company expects significant improvement in domestic business in 3Q25 as tender activities recover [4] Profit Forecast and Valuation - The profit forecast has been adjusted due to short-term disruptions affecting revenue growth and gross margin. The expected net profit attributable to the parent company for 2025-2027 is 10.942 billion RMB, 12.360 billion RMB, and 13.976 billion RMB, respectively, with a target price of 333.91 RMB based on a 37x PE ratio for 2025 [5][11]