medical device leader Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) ( Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) ) has been concerned by research institutions at home and abroad. In 2021, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) ranked the top of institutional research hot stocks. According to the data of China stock market news choice, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) annual total institutional reception reached 3065 times.
In the two weeks from the Spring Festival to the 25th of this year, the company has accepted the research of 650 funds, private placement, securities, insurance, QFII and overseas institutions. On February 28, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) released the record of investor relations activities.
Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) was established in 1991. In 2006, the company was listed in the United States, then delisted from the United States and listed in China in 2018. After years of deep cultivation, now Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) has become the largest and world leading supplier of medical devices in China
In the case of the global outbreak of covid-19 epidemic, in 2020, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) added more than 700 high-end customers in the international market, exceeding the growth of high-end customers in the international market over the years Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) 2021 in the third quarter, the main revenue in a single quarter was 6.613 billion yuan, an increase of 20.25% year-on-year; The net profit attributable to the parent company in a single quarter was 2.318 billion yuan, a year-on-year increase of 21.42%.
Since 2017, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) revenue and net profit have always increased by more than 20%. According to the annual report of the enterprise, from 2017 to 2020, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) achieved revenue of 11.174 billion yuan, 13.753 billion yuan, 16.556 billion yuan and 21.026 billion yuan respectively, with a year-on-year increase of 23.72%, 23.09%, 20.38% and 27.00%; The net profit attributable to the parent company was 2.589 billion yuan, 3.719 billion yuan, 4.681 billion yuan and 6.658 billion yuan respectively, with a year-on-year increase of 61.81%, 43.65%, 25.85% and 42.24%.
Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) recently, the highest transaction price of stock repurchase was 322.56 yuan / share, and the lowest transaction price was 291.44 yuan / share. Judging from the average price of 307595 yuan / share, company’s share price has fallen by 38% from the high point in 2021. At present, the total market value is 393.8 billion yuan the mainstream view in the industry is that, 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.
According to the research report recently released by Puyin international securities, 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 impact of centralized purchase 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.
On February 24 last week, Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) announced that it had completed the share repurchase of 1 billion yuan within half a month, which was the two repurchase plans of 1 billion yuan completed by Mindray within half a year.
investor relations activities main content introduction:
Q: how does the company choose when planning the future business layout
answer: first of all, according to the company’s statistics, the accessible market space corresponding to the three major production lines and four high potential businesses of Mindray in China and the world is 120 billion yuan and 710 billion yuan respectively, while the company’s Chinese and international revenue in 2020 is 11.1 billion yuan and 9.9 billion yuan respectively, of which the international market share is only a low single digit at present, Therefore, there is still huge growth space for the laid out business in the future, especially in the international market.
However, the market characteristics of thousands of medical device categories and limited space for single category determine that the long-term development of an enterprise is inseparable from continuous business expansion, which is also the road that Mindray has gone through in the past three decades and will continue to go in the future. When choosing new business areas, the company will consider the following three points: (1) there is a certain technical threshold, which can give full play to the company’s advantages in R & D; (2) It can expand internationally, make effective use of the advantages of the global business platform, and maximize the efficiency of R & D expenses; (3) It can serve the ecosystem of critical care, first aid, minimally invasive surgery, inspection, ultrasound and so on.
With entering the stage of high-quality development of public hospitals and accelerated promotion of DRG payment, hospitals now consider more how to improve management and operation efficiency and disease diagnosis and treatment ability when expanding. The ecosystem created by the company’s hospital wide product solutions and SanRui IT solutions can not only effectively improve the management efficiency of equipment, but also help the hospital improve the diagnosis and treatment ability. Through the integration of data between different equipment, it realizes the auxiliary diagnosis functions such as early warning of sepsis, liver fiber examination, congenital heart disease screening and so on. Compared with only supplying a single product, the ecosystem built by the company undoubtedly has a strong competitive advantage and a deep moat, and will continue to enter more business fields around these ecosystems in the future to consolidate the competitive advantage and deepen the moat.
Q: how do you view the impact of medical insurance policy on IVD industry
answer: ivd reagent is the cost item of the hospital. Whether it is centralized procurement, sunshine procurement, DRG / dip and technology consumption separation, its purpose is to help the hospital reduce the proportion of reagent consumption (that is, the proportion of reagent procurement cost in inspection fees), so as to help the hospital reduce the procurement cost. The reason why Anhui Province chose to concentrate on chemiluminescence is that the consumption proportion of chemiluminescence is higher than that of other IVD fields, and the consumption proportion is reduced by compressing the profits of circulation links. However, the fundamental reason for the high proportion of chemiluminescence consumption is the low localization rate in this field, and the product technology and quality of domestic enterprises have not surpassed the import. Therefore, the medical insurance bureau has always stressed the need to ensure the reasonable profits of production enterprises, encourage domestic enterprises to innovate independently, and fundamentally help hospitals reduce the proportion of consumption by improving the localization rate.
At the same time, the company believes that the medical insurance policy will not reduce the amount of testing in hospitals, and based on the impact of the irreversible macro factor of population aging, the amount of testing will continue to grow steadily in the future. In the future, the company will continue to increase the R & D investment in IVD, especially chemiluminescence, accelerate the R & D Progress of antigen antibody and other chemiluminescence core raw materials through hytest’s mature R & D platform, improve the competitiveness of the company’s chemiluminescence reagents, achieve a comprehensive breakthrough in tertiary hospitals as soon as possible, and accelerate the improvement of localization rate in this field.
Q: please introduce the expansion process of the company’s three production lines in the international high-end market
answer: as a production line with the highest brand awareness and product competitiveness, the life information and support production line has achieved a certain breakthrough in the international high-end market, and monitors and anesthesia machines have been installed on a large scale in the top hospitals in Europe and America. With the outstanding performance of anti epidemic products represented by respirators during the overseas covid-19 epidemic, the company achieved a breakthrough in more than 700 blank high-end hospitals in the international market in 2020. In recent years, as the overseas marketing platforms have become more and more mature after in-depth changes, these 700 high-end hospitals continue to bring a large number of non anti epidemic orders to the company in 2021, greatly accelerating the international high-end breakthrough of life information and support production lines, and gradually bringing synergy to the international high-end breakthrough of the other two production lines.
As the production line with the largest growth space, the international high-end breakthrough of IVD plays a vital role in the long-term development of the company. First of all, as the most mature sub business in IVD, by increasing the investment of special price machines, strategic machines and other instruments, the blood cell business began to gradually enter medium and high sample size hospitals and third-party chain laboratories, and actively layout overseas localized OEM, so as to ensure the stable supply of reagents and improve the cost performance advantage. Secondly, through the brand influence established by the blood cell business, accelerate the transformation of biochemical and chemiluminescence from low sample size hospitals to medium sample size hospitals, increase the investment of instruments, and gradually increase the proportion of reagent revenue. Finally, while driving the collaborative admission of coagulation and other IVD sub businesses, biochemical and chemiluminescence began to break through to customers with high sample size. The company realized the transformation from single product supply to IVD overall solution supply, and began a comprehensive high-end breakthrough in the international market.
Thanks to the leading product competitiveness in the field of POC, including TE SERIES anesthesia ultrasound, the company’s POC ultrasound has achieved large-scale installation in top international markets such as Europe and the United States, and has achieved the third market position in the field of POC ultrasound in the United States. Although the company’s traditional ultrasonic field in the international market is still generally concentrated in the middle and low-end market, with the company’s technological breakthrough in high-end and ultra-high-end ultrasound, the ultrasonic business will also fully open the breakthrough of high-end customers in the next few years.
