Core Insights - Goldman Sachs indicates a decline in hospital equipment bidding amounts in July, down 11% month-on-month, marking the third consecutive month of decline, although year-on-year growth remains at 23% [1] - The company expects that the equipment update stimulus policy in 2025 will yield results, albeit less significant than in 2024 [1] - A notable trend is the domestic substitution, with four out of nine tracked Chinese companies showing year-on-year growth, while five foreign companies experienced declines [3] Group 1: Market Trends - The ongoing regional centralized procurement is a major concern, with significant price drops observed in ultrasound equipment and CT scanners due to procurement impacts [7] - By the end of July, 30% of China's provincial regions completed centralized procurement for ultrasound equipment, leading to an average price drop of 50%-60% [10] - The average price of ultrasound equipment is expected to remain under pressure due to continued centralized procurement activities in various provinces [7][10] Group 2: Company Performance - For United Imaging Healthcare, management expresses optimism about the scale and progress of the 2025 equipment update policy, expecting smoother processes compared to 2024 [11] - United Imaging's revenue recognition cycle is longer due to delays between hospital bidding and actual installation, with expected year-on-year revenue growth of +10%/+45%/+26.8% in Q2/Q3/Q4 of 2025 [11] - For Mindray Medical, there is a slowdown in year-on-year growth for monitoring devices and ultrasound equipment, with July figures showing 21% and 24% growth respectively [14] Group 3: Investment Outlook - Mindray Medical is positioned as a leading medical device manufacturer in China, with strong domestic market momentum and potential for overseas revenue growth [20] - Goldman Sachs rates Mindray Medical as a buy, citing recovery in procurement activities and advancements in medical equipment update policies as key growth drivers [20] - United Imaging Healthcare is also rated as a buy, with expectations of rising service-related revenue and improved gross margins as market share increases [21]