Summary of Mindray Bio-Medical Conference Call Company Overview - **Company**: Mindray Bio-Medical (300760.SZ) - **Industry**: China Healthcare - **Current Stock Price**: Rmb222.83 (as of October 29, 2025) - **Market Capitalization**: Rmb270,892 million - **Price Target**: Rmb270.00, indicating a potential upside of 21% from the current price [5][69] Financial Performance - **3Q Revenue**: Increased by 1.5% year-over-year (y/y) but was 5% below Morgan Stanley estimates [7] - **Operating Profit**: Decreased by 14.9% y/y, 4% below estimates [7] - **Recurring Profit**: Declined by 17.8% y/y, impacted by foreign exchange losses and higher taxes [7] - **Gross Profit Margin (GPM)**: Increased by 0.7 percentage points y/y to 61.3% [4] - **Operating Profit Margin (OPM)**: Decreased by 6.7 percentage points y/y to 35.1% [4] - **Quarterly Dividend**: Declared at Rmb1.64 billion, maintaining a stable payout ratio of 65.2% [7] Segment Performance - **IVD (In Vitro Diagnostics)**: - Revenue decreased by 2.8% y/y; China sales down approximately 10%, while overseas sales increased by 11% [7] - **PMLS (Patient Monitoring and Life Support)**: - Revenue increased by 2.6% y/y; China sales down approximately 22%, overseas sales up by 14% [7] - **Imaging**: - Revenue remained flat y/y; China sales down approximately 11%, overseas sales up by 9% [7] - **Overseas Sales**: Surpassed 50% of total group revenue during the first nine months of 2025, with significant contributions from the EU (+29%) and CIS/Middle East (+18%) [7] Market Outlook - **4Q Growth Expectations**: Anticipated to accelerate off a low base, with a focus on improving sales through tenders translating into actual sales [2] - **Future Projections**: - EPS estimates for 2025: Rmb8.44, with a gradual increase projected through 2027 [5] - Revenue projections for 2025: Rmb36,183 million, increasing to Rmb44,073 million by 2027 [5] Risks and Opportunities - **Upside Risks**: - Stronger tailwinds from equipment trade-in policies - Faster-than-expected ramp-up in key product sales - Potential for accretive mergers and acquisitions [12] - **Downside Risks**: - Prolonged negative impacts from policy headwinds - Trade tensions affecting sales and earnings - Failure to generate synergies from M&A activities [12] Conclusion - **Investment Rating**: Overweight, with an attractive industry view [5][69] - **Valuation Methodology**: Discounted cash flow model with a WACC of 8.8% and a perpetual growth rate of 3.0% [10]