Mindray(SZ:300760) Changjiang Securities·2025-09-09 08:44Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Insights - The company's performance is in line with expectations, with a significant improvement anticipated in domestic performance in Q3 2025. The total revenue for the first half of 2025 was 16.743 billion yuan, with domestic revenue at 8.411 billion yuan, reflecting a year-on-year decline of 33.37%. This decline is attributed to the extended cycle from public bidding to revenue recognition, as the revenue corresponds to a significant drop in 2024's bidding. A recovery in hospital procurement activities is expected to lead to a performance turning point in Q3 2025 [2][13]. - The company has successfully penetrated high-end overseas markets, with overseas revenue reaching 8.332 billion yuan in the first half of 2025, a year-on-year increase of 5.39%. The overseas revenue now accounts for approximately 50% of total revenue, with significant growth in regions such as the CIS and Middle East Africa. The company plans to enhance its local production capabilities in 14 countries, with 11 already initiated, to meet overseas market demand [2][13]. - The company continues to strengthen its core competitive advantages across three main business areas. In the in-vitro diagnostics sector, revenue was 6.424 billion yuan, down 16.11% year-on-year, while overseas sales showed double-digit growth. In the medical imaging sector, revenue was 3.312 billion yuan, down 22.51% year-on-year, but is expected to recover as domestic bidding activities improve. The life information and support segment generated 5.479 billion yuan, down 31.59% year-on-year, with international revenue now constituting 67% of this segment [2][13]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved total revenue of 16.743 billion yuan, a year-on-year decline of 18.45%, with a net profit of 5.069 billion yuan, down 32.96%. The second quarter alone saw revenue of 8.506 billion yuan, down 23.77%, and a net profit of 2.440 billion yuan, down 44.55% [6][13]. Future Outlook - The company is expected to see a recovery in domestic performance in Q3 2025, driven by a resurgence in hospital procurement activities and the rollout of medical equipment updates. The overseas market is also projected to accelerate in the second half of 2025, supported by ongoing breakthroughs with high-end clients [2][13]. Business Segments - The in-vitro diagnostics segment is focusing on new product launches, with eight new chemical luminescence reagent products introduced in the first half of 2025. The medical imaging segment is expected to stabilize and grow, while the life information and support segment is expanding its international presence [2][13]. Valuation - The projected net profits for the company from 2025 to 2027 are estimated at 11.5 billion, 13.4 billion, and 15.6 billion yuan respectively, with corresponding price-to-earnings ratios of 26, 22, and 19 times [13].