Recently, leading medical device company Shenzhen Mindray Bio-Medical Electronics Co.,Ltd. released its interim results report for 2025. The data shows that in the first half of the year, the company achieved operating revenue of 16.743 billion yuan and net profit attributable to shareholders of 5.069 billion yuan. Behind this seemingly pressured performance report lies hidden opportunities, revealing that Mindray is on the eve of a critical performance inflection point.
Regarding the temporary pressure on first-half performance, market analysis suggests multiple short-term factors are behind it. According to research analysis by Boc International (China) Co.,Ltd., this is mainly related to medical anti-corruption efforts, tight local fiscal funds, reduced issuance of medical special bonds, and other factors that have caused delays in domestic medical equipment procurement tenders.
Notably, the domestic market has seen continuous improvement in monthly tender data for medical equipment since December last year. However, under the current competitive environment, the cycle from public tendering to revenue recognition has been significantly extended. Therefore, the revenue in the first half of 2025 actually reflects the period when tenders declined last year, combined with the impact of a relatively high revenue base in the first half of last year, jointly causing the year-over-year decline in domestic business.
However, short-term fluctuations have not obscured the long-term positive trend. As medical equipment upgrade projects gradually launch and medical equipment tender activities recover, the domestic market is expected to improve significantly in the third quarter and welcome an inflection point.
While the domestic market undergoes adjustment, Mindray Medical's internationalization pace has become increasingly steady, representing the brightest spot in the financial report. In the first half of 2025, the company's international business revenue grew 5.39% year-over-year, with international business revenue accounting for approximately 50% of the company's total revenue, occupying half of the business.
The strong performance of international business is particularly evident in the company's largest product line - in vitro diagnostics. The company continues to increase support for localized platform construction in international in vitro diagnostics business including production and manufacturing, logistics and distribution, clinical support, and IT services through a combination of acquisitions, self-construction, and external cooperation. As of the first half, the company has established localized production projects in 14 countries worldwide.
More notably, its MT8000 full laboratory intelligent assembly line has sold 13 units overseas, with cumulative sales reaching 15 units. In the future, as this intelligent assembly line continues to scale up overseas, international in vitro diagnostics business sales are expected to further accelerate, contributing greater momentum to the company's growth.
Looking ahead, the company will deeply integrate DiaSys' supply chain and R&D resources in Europe, Asia-Pacific, and Latin America, further improve the R&D system and supporting supply capabilities for in vitro diagnostic products, accelerate the deepening of international layout, and inject lasting momentum for large-scale breakthroughs in overseas medium and large sample customer groups.
Boc International (China) Co.,Ltd. believes that although short-term factors have caused performance pressure, given that the company is expected to reach an inflection point in the third quarter and has broad prospects for internationalization and AI deployment, the firm maintains a "Buy" rating on Shenzhen Mindray Bio-Medical Electronics Co.,Ltd.
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