As the market capitalization leader of the A-share medical and health sector, Mindray Medical's net profit attributable to the parent company with a market value of 350 billion yuan has maintained a growth rate of more than 20% for six consecutive years since its listing, and the compound growth rate of net profit has reached 25.51% in five years.
According to Mindray's annual report disclosed on the evening of April 26, the company will achieve operating income of 34.932 billion yuan in 2023, a year-on-year increase of 15.04%, and net profit attributable to shareholders of listed companies of 11.582 billion yuan, a year-on-year increase of 20.56%.
It is worth noting that since its listing in 2018, Mindray Medical has not refinanced, and has paid dividends for six consecutive years, with a cumulative total dividend of nearly 24.8 billion yuan, which is four times the amount raised by the company's IPO.
As a representative of China's medical device industry, Mindray Medical has made a name for itself in the world.
At present, in the global medical device industry, Mindray has fully realized the transformation from follower to challenger, and some mature businesses have entered the leader stage, and its future development goal is to enter the top 20 global medical devices by 2025.
Steady growth for six consecutive years
According to the annual report released by Mindray Medical on the evening of April 26, the company will achieve operating income of 34.932 billion yuan in 2023, an increase of 15.04% over the same period of the previous year, and net profit attributable to shareholders of listed companies of 11.582 billion yuan, an increase of 20.56% over the same period of the previous year.
According to the first quarter report of 2024 released on the same day, the company achieved operating income of 9.373 billion yuan in the first quarter of 2024, a year-on-year increase of 12.06%, and net profit of 3.16 billion yuan, a year-on-year increase of 22.9%.
It is worth noting that since its listing in 2018, Mindray's net profit attributable to the parent company has maintained a growth rate of more than 20% for six consecutive years, with a compound growth rate of 25.51% in net profit and 20.49% in operating income in five years, sustaining high-quality growth.
In 2023, Mindray Medical maintained high R&D investment, expanding its global R&D and innovation centers to 12, with R&D investment of 3.779 billion yuan, a year-on-year increase of 18.43%, accounting for 10.82% of revenue.
According to Mindray's 2023 annual profit distribution plan, the company plans to distribute a total of 1.819 billion yuan in cash dividends. Combined with the company's cash dividend of 5.213 billion yuan distributed in the third quarter of 2023, the two dividends will distribute a total of 7.032 billion yuan, with an annual dividend ratio of 60.72%.
According to the data, since its listing in 2018, Mindray Medical has not refinanced, and has implemented dividends for 6 consecutive years, plus the annual dividends in 2023 implemented by this plan, the cumulative total dividends are nearly 24.8 billion yuan (including 2 billion yuan of repurchased shares), which is four times the amount of IPO funds raised of 5.934 billion yuan.
The IVD business is growing rapidly
Among Mindray's three main businesses, the in vitro diagnostics (IVD) business has achieved the most remarkable results in 2023.
According to the annual report, in 2023, Mindray's in vitro diagnostic business will achieve operating income of 12.421 billion yuan, a year-on-year increase of 21.12%, of which the compound growth rate of the international in vitro diagnostic business will exceed 30% for two consecutive years. The star product BC-7500 series has more than 2,000 installed units, which has contributed more than 1 billion yuan to the company's revenue while consolidating the company's first position in the domestic blood cell market, becoming the first product to achieve a revenue of more than 1 billion yuan in the third year of listing.
In addition, Mindray Medical has added more than 2,000 new chemiluminescence units in China, of which high-speed machines account for nearly 60%. The continuous acceleration of customer breakthroughs with large sample sizes also helped the company's chemiluminescence business surpass an imported brand in domestic market share for the first time, ranking fourth.
In addition, in order to strengthen the construction of a localized supply chain platform and continuously enhance its competitiveness in the global market, Mindray completed the acquisition of a 75% stake in DiaSys, a world-renowned IVD brand, in Germany in 2023.
At present, DiaSys' three localized production and delivery platforms in Europe, Asia-Pacific and Latin America have been incorporated into Mindray's global supply and delivery plan. At the same time, DiaSys' R&D team and products for in vitro diagnostic reagents and quality control calibration have also been included in Mindray's mid- and long-term development plan for in vitro diagnostic reagents and supporting quality control calibration products.
In the future, Mindray will make full use of DiaSys' supply chain and R&D platform to support breakthroughs in overseas medium and large sample size customers, improve the R&D of in vitro diagnostic products and the supply of quality control calibrators, accelerate the international layout of the company's in vitro diagnostic business, enhance product competitiveness, and achieve breakthroughs in the customer base.
The process of going to sea has accelerated
In recent years, while China's medical device industry has achieved high-quality development, the process of going overseas has also accelerated.
As a leading domestic medical device and a business card of Made in China going overseas, in the past few years, Mindray's products in the three major business areas have significantly accelerated the breakthrough of new high-end customer groups at home and abroad, and its influence and popularity have also increased rapidly.
In the 2023 Newsweek Global Top 100 Hospitals, Mindray has covered 80 of them, proving its ability to compete with international first-tier medical device companies in the global market.
According to the annual report, in 2023, Mindray Medical will achieve overseas revenue of 13.550 billion yuan, a year-on-year increase of 15.83%, accounting for 38.79% of revenue. Among them, developing countries have grown by more than 20%, and overseas in vitro diagnostic production lines have grown at a compound growth rate of more than 30% for two consecutive years.
According to Mindray Medical's statistics, in 2023, the global market share of the company's monitors, anesthesia machines, ventilators, and defibrillators will reach the top three positions in the market, among which the ultrasound market share will reach the top three in the world for the first time.
From the perspective of global market rankings, according to Wind statistics, among the listed companies in the global medical device industry, Mindray Medical ranked 36th, 31st and 27th respectively from 2020 to 2022, and its ranking has increased year by year.
Obviously, as a leading enterprise in the field of medical devices in China with the most complete product line and product sales in more than 190 countries and regions around the world, Mindray is gradually narrowing the gap with the international medical device leaders.
The market believes that at present, Mindray's high-end, digital, intelligent and global development strategy will strongly promote the company's growth into a global medical device leader, and overseas business is expected to become the main driving force for the company's growth in the next ten years.
It will enter the top 20 of global medical devices in 2025
In the first decade of the company's development, Mindray Medical has launched three products: monitors, blood cells, and ultrasound, and has basically established three major business areas with life information and support, in vitro diagnostics, and medical imaging as the core.
After more than 30 years of independent innovation, Mindray Medical has gradually transformed from a supplier of single medical device products to a service provider that improves the overall diagnosis and treatment capabilities of medical institutions, and has preliminarily completed the construction of an intelligent medical ecosystem of "equipment + IT + AI", and has the ability to customize hospital-wide digital and intelligent overall solutions.
In the next ten years, China and even overseas emerging market countries will be the outlet for the rapid development of medical devices.
In its 2023 annual report, Mindray said that in the future wave of new global medical infrastructure, the company will take China and emerging market countries as the main growth drivers, and at the same time accelerate global penetration by building brand awareness and influence in developed countries.
At present, in the global medical device industry, Mindray Medical has fully realized the transformation from a follower to a challenger, and some mature businesses have entered the leader stage, and the future development goal is to enter the top 20 global medical devices by 2025, and continue to forge ahead on the road to fully realizing a leader.
In 2024, while focusing on its main business, Mindray will focus on cultivating growth businesses, comprehensively strengthen its comprehensive capabilities in product research and development, market expansion, and overseas localization platform construction, promote the company's strategic planning and business layout in an orderly manner, and optimize production and management efficiency, with a view to maintaining a steady and good growth trend in operating revenue and operating performance.
In the process of expanding overseas markets, in the next few years, Mindray plans to further optimize the highly integrated, replicable and high-growth M&A integration platform based on the characteristics and development opportunities of major global markets, integrate the cutting-edge technologies of the entire industry chain around the world, enhance the comprehensive competitiveness of existing businesses in the high-end market, and increase the market share of growth businesses through strategic and forward-looking M&A transactions. （CIS）