Mindray Medical: Long-Cycle Inflection Point Arrives, Process-based, Digital-Intelligent, and Internationalization Drive Value Re-rating

English summary

In the short term, the company has reached an earnings inflection point. Revenue has achieved positive growth for three consecutive quarters since 25Q3, while the profit side remains under short-term pressure due to exchange rate effects. Looking forward to 2026, we expect the company to move past the impact of external industry pressures, with the overall performance growth pace showing a trend of low first half and high second half. Full-year revenue is expected to return to steady growth, and valuation reshaping is likely against the backdrop of policy clearing, earnings recovery, and strategic transformation. Process-based: Currently, some of the company's process-based businesses have higher net margins than medical equipment, and the proportion of process-based business continues to increase, which is beneficial to improving revenue sustainability and gross margin. The company continues to expand through self-development and M&A in IVD, cardiovascular and other minimally invasive interventional consumables, minimally invasive surgical consumables, etc. Internationalization: Comprehensive localization of overseas R&D, production, sales, and warehousing. Overseas employees exceed 3,000, with over 90% being local employees. Localized production projects are deployed in 14 countries, and production has been launched in 11 countries. The overseas addressable market space exceeds $100 billion, with broad growth potential. ...