Mindray(SZ:300760) EBSCN·2024-04-28 12:02Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company reported a robust performance with a 15.04% year-on-year increase in revenue for 2023, reaching 34.932 billion yuan, and a 20.56% increase in net profit, totaling 11.582 billion yuan [2][3]. - In Q1 2024, the company achieved a revenue of 9.373 billion yuan, reflecting a 12.06% year-on-year growth, and a net profit of 3.160 billion yuan, which is a 22.90% increase compared to the previous year [2][3]. - The growth in 2023 was primarily driven by the rapid recovery of routine medical activities in domestic hospitals and an accelerated breakthrough in overseas high-end customer segments [3]. - The company is benefiting from the "equipment update" policy released in March 2024, which is expected to further stimulate domestic medical equipment procurement demand [3]. - The acquisition of control over Huatai Medical in Q1 2024 allows the company to enter the cardiovascular sector, creating new growth opportunities [3]. Summary by Sections Financial Performance - In 2023, the company achieved a total revenue of 34.932 billion yuan, with a net profit of 11.582 billion yuan, marking a 15.04% and 20.56% increase respectively [2][3]. - For Q1 2024, revenue was reported at 9.373 billion yuan, with a net profit of 3.160 billion yuan, showing a year-on-year growth of 12.06% and 22.90% respectively [2][3]. Research and Development - The company increased its R&D investment to 3.779 billion yuan in 2023, a growth of 18.43%, and 1.030 billion yuan in Q1 2024 [3]. - As of Q1 2024, the company holds 4,945 authorized patents, including 2,346 invention patents [3]. Market Opportunities - The "equipment update" policy is expected to release further procurement demand in the domestic medical equipment market, benefiting the company as an industry leader [3]. - The acquisition of Huatai Medical positions the company to tap into the cardiovascular market, which is anticipated to be a new growth driver [3]. Profitability and Valuation - The company is projected to maintain a net profit of 13.907 billion yuan in 2024, with estimates of 16.839 billion yuan in 2025 and 20.224 billion yuan in 2026 [4]. - The current price corresponds to a PE ratio of 25 for 2024, 21 for 2025, and 17 for 2026, indicating a favorable long-term outlook [4].