Core Viewpoint - Mindray Medical reported a net profit of 5.07 billion yuan for H1 2025, reflecting a year-on-year decline of 33.0% [1] Financial Performance - Domestic business revenue for H1 2025 was 8.41 billion yuan, down 33.4% year-on-year, attributed to the prolonged revenue recognition cycle from public tenders [1] - International business revenue reached 8.33 billion yuan, an increase of 5.4% year-on-year, supported by the company's continued breakthroughs with high-end overseas clients and improvements in local platforms [1] Market Trends - The bidding activities for medical devices in China are gradually recovering, with expectations for significant improvement in the domestic market in Q3 2025 [1] - The international revenue contribution increased to 62%, driven by the launch of high-end ultrasound series overseas [1] Product Development - In the domestic market, high-end and ultra-high-end ultrasound models accounted for over 60% of revenue, enhancing market share through premiumization [1] - New products launched in the life information and support, as well as medical imaging sectors, include specialized plasma resection solutions and mid-range portable ultrasound models [1] Valuation - Based on comparable company valuations, a target price of 308.48 yuan is set for 2025, with a maintained "buy" rating at a 32x PE ratio [1]

Investment Rating - The report maintains a "Buy" rating for the company [3][6]. Core Insights - The company is approaching a domestic turning point while maintaining steady growth overseas. The first half of 2025 saw a revenue of 16.74 billion yuan, a year-on-year decrease of 18.4%, and a net profit attributable to the parent company of 5.07 billion yuan, down 33.0% year-on-year. Domestic revenue was 8.41 billion yuan, down 33.4% year-on-year, attributed to extended income recognition cycles from public tenders. However, the third quarter is expected to show significant improvement as tender activities gradually recover [9]. - The company’s international business achieved revenue of 8.33 billion yuan, up 5.4% year-on-year, benefiting from the continuous breakthrough in high-end customer segments and the gradual improvement of local platforms [9]. - The company has maintained high R&D investment, with 1.78 billion yuan in the first half of 2025, accounting for 10.6% of revenue. It has established a digital medical ecosystem and launched several new products in the in vitro diagnostics and medical imaging sectors [9]. Financial Forecast and Investment Recommendations - Based on the mid-2025 report, the company’s earnings per share (EPS) for 2025-2027 are projected to be 9.64, 10.81, and 12.40 yuan respectively, down from previous estimates of 10.63, 12.13, and 13.77 yuan. The target price is set at 308.48 yuan, based on a 32 times price-to-earnings (PE) ratio for 2025 [3][6]. - The company’s revenue is expected to grow from 34.93 billion yuan in 2023 to 48.98 billion yuan in 2027, with a compound annual growth rate (CAGR) of 14.3% [5][11]. Key Financial Metrics - The company’s gross margin is projected to be 63.3% in 2025, with a net profit margin of 30.2% [5][11]. - The return on equity (ROE) is expected to decline from 35.6% in 2023 to 29.3% in 2025, reflecting the impact of increased competition and market conditions [5][11]. Market Performance - As of September 9, 2025, the company’s stock price was 241 yuan, with a 52-week high of 344.56 yuan and a low of 203.88 yuan [6].