Mindray(SZ:300760) Tai Ping Yang·2024-02-18 16:00Investment Rating - The report maintains a "Buy" rating for Mindray Medical (300760) with a target price of 420, compared to the last closing price of 297.38 [1][4]. Core Insights - Mindray Medical has launched a "Quality and Return Improvement" action plan aimed at stabilizing the capital market and investor confidence. The plan includes focusing on core business development, enhancing R&D investment, expanding high-end customer bases, accelerating acquisitions, maintaining steady growth, and improving investor relations [1][6]. - The company aims to rank among the top 20 global medical device companies by 2025, having improved its global ranking from 27th in 2022 to 22nd in 2021 and 18th in 2020. This ambition is supported by both organic growth through R&D and strategic acquisitions [7]. - Mindray Medical has consistently demonstrated robust financial performance, with a compound annual growth rate (CAGR) of 18.4% in revenue and 27.7% in net profit from 2014 to 2022. The company has also initiated cash dividends, distributing approximately 52.12 billion RMB in cash dividends in the third quarter of 2023 [8]. Financial Forecast and Investment Rating - The projected revenues for Mindray Medical from 2023 to 2025 are 354.42 billion RMB, 427.51 billion RMB, and 515.51 billion RMB, with year-on-year growth rates of 16.72%, 20.62%, and 20.58% respectively. The net profits are expected to be 116.52 billion RMB, 140.27 billion RMB, and 169.36 billion RMB, with growth rates of 21.28%, 20.38%, and 20.74% respectively [3][9]. - The earnings per share (EPS) for 2023 to 2025 are forecasted at 9.61 RMB, 11.57 RMB, and 13.97 RMB, corresponding to price-to-earnings (PE) ratios of 30.94, 25.70, and 21.29 respectively [3][9].