New Stock Preview| Shenzhen Mindray Bio-Medical Electronics: Leading in multiple businesses, preparing for a second listing in Hong Kong and striving for A-share market.

For five consecutive years, Shenzhen Mindray Bio-Medical Electronics, the leading company in China's medical device industry with a market value of nearly 200 billion yuan, has persistently pursued a listing on the Hong Kong Stock Exchange. Recently, Shenzhen Mindray Bio-Medical Electronics once again submitted an application to the Hong Kong Stock Exchange, with Huatai International and J.P. Morgan as joint sponsors. According to Frost & Sullivan, based on revenue projections for 2024, the company ranks in the top three globally in multiple areas and holds the top market share in nine product categories in China. Strategically, Shenzhen Mindray Bio-Medical Electronics has diversified its product and production lines and is the only top medical device company in the top 30 globally to span multiple product lines such as in vitro diagnostics, life information and support, medical imaging, minimally invasive surgery, and minimally invasive intervention. In terms of performance, the company is expected to achieve revenues of 34.93 billion yuan, 36.726 billion yuan, and 33.282 billion yuan from 2023 to 2025, with net profits of 11.578 billion yuan, 11.74 billion yuan, and 8.451 billion yuan, and net profit margins of 33.15%, 32%, and 25.39%, respectively. The company, listed on the A-share Growth Enterprise Market, currently has a market value of 195.5 billion yuan, with a PB ratio and PE ratio of 4.87 times and 23 times, respectively. This second attempt to list in Hong Kong is seen as a strategic move in the wave of AH dual listing and capital globalization. The company's emerging business growth is impressive, with an ROE of up to 21.4%. Established in 1999, Shenzhen Mindray Bio-Medical Electronics is primarily engaged in medical device research and development. By focusing on the core ecosystem of "equipment + IT + AI," the company continuously expands its pipeline business represented by reagents, high-value consumables, and digital services, and builds an open and sustainable iterative numerical medical ecosystem. The company also insists on strategic layout, covering multiple products and production lines. The company's products include in vitro diagnostic products, life information and support products, medical imaging system products, and emerging businesses. Revenue from in vitro diagnostic products and medical imaging system products has remained relatively stable, with a declining trend in 2025, accounting for 36.8% and 17.2% of revenue, respectively. The business of life information and support products continues to shrink, with revenue share decreasing from 40.8% to 29.6%. On the other hand, emerging business has shown impressive revenue growth, with a compound growth rate of 74.2% in the past three years, increasing its revenue share from 5% to 16.2%. In terms of product development, in vitro diagnostic products include global laboratory automation lines, blood cell analyzers, and biochemical analyzers; life information and support products include anesthesia systems, ventilators, and monitors; medical imaging products include high-end ultrasound imaging, high-end desktop color ultrasound, and X-ray imaging products; while in emerging business, products mainly include minimally invasive surgery, minimally invasive intervention, and animal medical care. Shenzhen Mindray Bio-Medical Electronics places great emphasis on research and development to maintain the leading position of its products in the industry. It primarily adopts an independent research and development model and has built a Medical Product Innovation (MPI) system. The company's research direction mainly focuses on numerical intelligence, pipeline business, and internationalization. By the end of 2025, the company's research and development team has over 5,200 members, with 70% having a master's degree or higher, and research and development expenses reaching 3.579 billion yuan, with a research and development expense ratio of 10.75%, showing an upward trend. Driven by research and development, the company's customer base continues to grow. The company's customers primarily include public and private hospitals, clinics, third-party laboratories, health centers, and research institutions and use direct and distribution channels to reach customers. The company mainly adopts a distribution model, with the number of distributors increasing steadily in the past three years to reach 7,502 in 2025, an increase of 293 from the previous year. During this period, the proportion of revenue from distributors and direct sales is 88.4% and 11.6%, respectively. In terms of profitability, Shenzhen Mindray Bio-Medical Electronics has seen a slight decline but remains relatively stable. The gross margin of 64.2%, 63.1%, and 60.3% from 2023 to 2025 respectively, showing a decline of 3.9 percentage points over the three years. The gross profit contribution of the three major businesses, in vitro diagnostics, life information and support, and medical imaging, accounts for a total of 82.6%. However, the emerging business has shown a continual improvement in gross profit margin, increasing from 57.2% to 63.7%, with a contribution of 17.08%. In 2025, the company's net profit margin and ROE were 25.39% and 21.4%, respectively. Multiple businesses lead their respective industries, and the A + H listing is expected to bring about a reevaluation of the company's value. On an industry level, Shenzhen Mindray Bio-Medical Electronics' four core businesses are maintaining their growth levels. According to Frost & Sullivan data, the global in vitro diagnostics market is estimated to be 126.7 billion dollars in 2024, with a compound annual growth rate of 4.2% in the past five years. The global life information and support market is estimated to be 11.9 billion dollars, with a compound annual growth rate of 5.2%. The global imaging market is expected to be 87.2 billion dollars, with a compound annual growth rate of 8.2%. The global minimally invasive surgery market is anticipated to be 33.8 billion dollars, with a compound annual growth rate of 5.1%. According to Frost & Sullivan data, the compound annual growth rate of the company's four major businesses in the next five years (2025-2029) is higher than in the past five years, indicating potential market growth. The company's various businesses have certain industry positions, which present opportunities to capture a larger market share. Based on Frost & Sullivan data, Shenzhen Mindray Bio-Medical Electronics is China's largest and the world's second-largest blood cell diagnostic provider and China's largest biochemical diagnostic provider in the global in vitro diagnostics segment. In life information and support, it is China's largest and the world's second-largest monitor provider. In medical imaging, it is the world's third-largest and China's largest ultrasound imaging provider. Additionally, in China, the company has ranked as the top domestic medical device company for over five years and is the only Chinese company among the top 30 global medical device companies in 2024. The company's scale advantage is its biggest competitive advantage in the industry, and with increased research and development investment, it maintains its product competitiveness. Furthermore, the company actively expands its overseas market and increases growth space through market diversification. The company's products are sold in more than 190 countries and regions, and it has entered 87 of Newsweek's top 100 global hospitals. In 2025, its overseas revenue accounted for approximately 53% of total revenue, with the Asia-Pacific, Europe, North America, and Latin America regions accounting for 10.9%, 10.1%, 8.1%, and 9% of total revenue, respectively. By the end of 2025, the company had localized production projects in 14 countries globally, with production already underway in 11 countries. However, there is still room for improvement in the capacity utilization of the company's various businesses, with a capacity utilization of 69.1% for in vitro diagnostic equipment, 55.4% for life information and support, and 58.3% for medical imaging systems in 2025. Despite the challenging environment, the company's overseas revenue grew by 7.4% in 2025, with continued expansion overseas and the potential to create a core growth curve. Overall, as a leader in the industry, Shenzhen Mindray Bio-Medical Electronics has a solid core business, with its emerging business and overseas markets as growth drivers. The company's profitability has weakened slightly but remains manageable, with net profit margins and ROE levels ranking in the upper-middle range of the industry. Furthermore, the company's products have market advantages in various industries and with increased research and development investment, it continues to consolidate its global market competitiveness. The ongoing expansion into overseas markets, the localization model, and the potential for increased capacity utilization provide growth opportunities for the company's performance. Affected by the medical sector and investment environment, the valuation of Shenzhen Mindray Bio-Medical Electronics has been declining. However, some shareholders have high expectations for the company. For example, in November of last year, one of the company's controlling shareholders, Li Xiting, planned to invest about 200 million yuan in additional shares, with an initial increase of about 30 million yuan on the announcement day. Additionally, the company has a high dividend payout ratio of around 3% annually. With the H-share listing and a more complete pricing mechanism, the company's market value is expected to be reevaluated under the AH dual-listing mechanism.