A：Company Basic Information
Company Full Name:Shenzhen Mindray Bio-Medical Electronics Co., Ltd.
Stock Code: 300760.SZ
Stock Abbreviation: Mindray Medical
Region: Shenzhen, Guangdong Province
Industry: Medical Devices
Establishment Date: 1991
Founder: Li Xiting, Xu Hang
Company Website: http://www.mindray.com/
Registered Address: Mindray Building, Technology South 12th Road, High-tech Industrial Park, Nanshan District, Shenzhen
Total Shares: As of October 16, 2024, the total number of shares is 1,206,591,092
Market Capitalization: As of October 16, 2024, the market capitalization is 321.247 billion yuan
Business Scope: The company is mainly engaged in the research and development, manufacturing, marketing, and services of medical devices. The main products include three major areas: Patient Monitoring and Life Support, In Vitro Diagnostics, and Medical Imaging. The products cover a wide range such as monitors, ventilators, ECG and defibrillators, infusion pumps, blood testing, biochemical testing, immunoassay, and various types of ultrasound equipment and consumables. The sales channels are primarily through distribution with a supplementary direct sales model, and the products are sold globally.
Company Profile: Mindray Medical, established in 1991, is a leading high-tech medical equipment research and development manufacturer in China. The company's products cover three major areas: Patient Monitoring and Life Support, In Vitro Diagnostics, and Medical Imaging. Mindray is committed to becoming a core force in protecting human health.
B：Value Investment Analysis
Key Financial Indicators:
In 2023, the company achieved a revenue of 34.932 billion yuan, a year-on-year increase of 15.04%; the net profit attributable to the mother company was 11.582 billion yuan, a year-on-year increase of 20.56%. For six consecutive years, the company has maintained a growth rate of over 20%, with a compound annual growth rate (CAGR) of net profit of 25.51% and a CAGR of revenue of 20.49% over five years.
In the first quarter of 2024, Mindray Medical achieved a revenue of 9.373 billion yuan, a year-on-year increase of 12.06%; the net profit attributable to the mother company was 3.16 billion yuan, a year-on-year increase of 22.90%; the net cash flow from operating activities was 2.865 billion yuan, a year-on-year increase of 114.85%.
Company Investment Value:
Mindray Medical continues to expand in high-end customers and markets, especially overseas, at an accelerated pace. Relying on the "Ray Intelligence Alliance", "Mindray Intelligence Inspection", and "Ray Imaging Cloud ++" of the three Ray systems, the company fully exerts its advantage of transforming to digital intelligence, and its profitability is expected to remain at a high level.
The company's balanced layout in the three major areas of Patient Monitoring and Life Support, In Vitro Diagnostics, and Medical Imaging gives it strong competitiveness and risk resistance in the medical device industry.
Company Growth Potential:
Mindray Medical continues to launch new products through continuous R&D investment and technological innovation, such as AI reading machines and intelligent auxiliary diagnostic tools. It is expected that by 2025, the global artificial intelligence application market value will reach 127 billion US dollars, with the medical industry accounting for one-fifth of the total scale. The company is expected to achieve rapid growth in this field.
The company's forward-looking layout in new growth areas such as veterinary devices, minimally invasive surgery, and orthopedics is expected to bring new growth momentum for the company in the next few years.
Industry Support Policies:
In recent years, China's medical device industry has ushered in a rare "policy intensive period", with clear domestic expansion and encouragement of innovation. In terms of financial support, the central finance, together with relevant parties, has implemented a fiscal interest subsidy policy for equipment updates, providing a guarantee for the source of funds for medical equipment procurement.
International Policy Risks:
In the process of expanding in the international market, Mindray Medical may face policy changes in different countries and regions. However, the company has effectively diversified policy risks and enhanced profitability and market competitiveness through continuous localization strategies and the construction of a global R&D, marketing, and service system.
A.Top's Investment Review:
As a leading enterprise in the domestic medical device industry, Mindray Medical has shown strong growth potential through its balanced layout in the three major areas of Patient Monitoring and Life Support, In Vitro Diagnostics, and Medical Imaging, as well as continuous R&D investment and technological innovation. Against the backdrop of national policy support and the continuous strong demand for global medical devices, the company is expected to maintain a relatively stable growth trend and open up a broader prospect for future development.