Investment Rating - The report maintains a "Buy" rating for both Mindray and United Imaging, indicating a positive outlook for their stock performance in the near future [82][83]. Core Insights - The procurement value of main medical devices in China has shown strong year-over-year (YoY) growth, with a month-over-month (MoM) increase of 13% in April, surpassing expectations [1]. - The report anticipates a high level of activity in medical equipment procurement throughout 2025, driven by government funding and a recovery in hospital demand [1][25]. - Mindray is expected to maintain its market leadership with multiple growth drivers, while United Imaging is projected to see significant long-term growth potential due to increasing service-related revenue [82][83]. Summary by Sections Procurement Trends - The total bidding value for nine main medical devices in China has reached a high level, with positive MoM growth observed in seven out of nine devices in March [26]. - The report notes that procurement activities are supported by government funding and the implementation of a trade-in program, which is expected to drive demand in the coming quarters [1][25]. Company Performance - Mindray's revenue growth is projected to be +10% in 2Q24, +40% in 3Q25, and +36.5% in 4Q25, reflecting a recovery in its end markets [9]. - United Imaging's management expressed optimism about the upcoming trade-in program in 2025, expecting a smoother process compared to 2024 [9]. Market Dynamics - The report highlights that both domestic and multinational companies achieved notable YoY growth in April, indicating a balanced competitive landscape in the medical device sector [64]. - The trend of domestic substitution is not particularly evident, as both local and multinational companies are performing well in the procurement market [64].