Mindray (300760) H1 2024 earnings summary

Executive summary

• Revenue reached 20.53 billion RMB in H1 2024, up 11.1% year-over-year; net profit attributable to shareholders was 7.56 billion RMB, up 17.4% year-over-year.

• Net operating cash flow surged 89.5% year-over-year to 8.50 billion RMB in H1 2024.

• Interim dividend of 4.92 billion RMB proposed, with a payout ratio of 65.1%.

• Completed acquisition of a 24.61% controlling stake in Shenzhen HyT Medical, expanding into the cardiovascular sector.

• Basic EPS was 6.2446, up 17.41% year-over-year.

Financial highlights

• Gross margin improved to 66.25% in H1 2024 from 65.60% in H1 2023.

• Net margin increased to 36.83% in H1 2024 from 34.87% in H1 2023.

• Net profit after excluding FX impact grew 22.1% year-over-year in H1 2024.

• Total assets reached 60.63 billion RMB, up 26.46% from year-end 2023.

• Weighted average ROE was 20.69%, up 2.04 percentage points year-over-year.

Outlook and guidance

• Focus on increasing high-end penetration internationally and expanding consumables business in China.

• Management expects continued healthy growth in revenue and net profit, driven by product innovation, international expansion, and digital solutions.

• Domestic medical device procurement delays are expected to ease as industry reforms normalize.

• Overseas demand is recovering as global healthcare spending rebounds.