Mindray (300760.SZ): China Healthcare Corporate Day 2026 Takeaways

研报英文原文证据摘录

Mindray (300760.SZ): China Healthcare Corporate Day 2026 Takeaways

as IVD expected to grow by more than 20% and overseas

equipment by around 10% per the company; RMB-reported growth may be lower due to

FX headwinds. On profitability, FX losses are the largest near-term drag, with RMB

appreciation causing a RMB400mn FX loss in 1Q26 and continued pressure in 2Q26,

while the potential tax-rate increase to 15% should have a smaller impact. Excluding FX,

management expects profit to likely return to positive growth, and the company target

remains double-digit revenue and profit growth with stable margins in 2027-28.

Investment thesis

Mindray is a leading medtech device manufacturer in China with focus on several

segments including patient monitoring systems, medical imaging and IVD. 55% of its

2024 revenue was from China. We see strong healthcare infrastructure construction and

domestic substitution in China. Moreover, we expect overseas revenue to increase given

Mindray’s relatively low market share and cost-effective product portfolio. The company

is trading below its 5-year average forward P/E mainly due to policy risks. We expect

Mindray to maintain its market leader position with multiple growth drivers. We are

Buy-rated on Mindray. Key catalysts include procurement activities recovery, updates on

medical device trade-in program, and launch of new products.

Price Target Risks & Methodology

Our 12-month target price of Rmb247 is based on a two-stage DCF valuation, with

terminal growth rate of 2%, and WACC of 9.5% (both unchanged). Key downside risks: 1)

further impact from VBP to cut the ex-factory price of some products; 2)

lower-than-expected progress of penetration into top-tier hospitals in China; 3)

29 June 2026 2