\u3000\u3000 Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) (300760)
We covered Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) (300760. CH) for the first time and gave a “buy” rating with a target price of 390.0 yuan. As a leader in the medical device sector and one of the few Chinese medical device targets capable of involving the high-end market, Mindray is in line with the stock selection framework of “good track, good company, good valuation and good opportunity”. The company’s share price has fallen by 36% since its peak in 2021. In addition to the impact of the overall valuation correction of the pharmaceutical sector, it is mainly due to market concerns that the growth certainty of Mindray under the policy environment of centralized purchase of devices is reduced. Different from the current mainstream view, we believe that the impact of centralized procurement on Mindray will not be as pessimistic as market expectations. The company has the core strength of “complete varieties + strong R & D ability + after-sales improvement”. It can effectively disperse the risks of centralized procurement policy while superimposing two wheel drives at home and abroad to broaden the market boundary. In addition, the medical device sector has obvious characteristics of “the strong is always strong”. As an industry leader, Mindray is more likely to enjoy the development dividend of the industry. At present, Mindray’s forward-looking P / E ratio has been 1.1 standard deviation lower than the average value of the past three years, and the valuation has been attractive. We believe that the expected difference between the pessimistic interpretation of the market and the steady growth of the company’s performance will gradually appear. At the current time point, we believe that a better layout opportunity will have emerged.
