On April 26, 2024, Mindray Medical (300760. SZ) released its 2023 annual report and 2024 first quarter report, and the company's operating income and net profit continued to grow at high quality during the reporting period. In addition, the company also issued the "Announcement on the Progress of the Action Plan of "Double Improvement of Quality and Return", which disclosed the progress of the "Double Improvement of Quality and Return" action plan in detail.
It is understood that in order to implement the guiding ideology of "activating the capital market and boosting investor confidence" proposed by the Political Bureau of the Central Committee and the executive meeting of the State Council of "vigorously improving the quality and investment value of listed companies, taking more powerful and effective measures, and focusing on stabilizing the market and stabilizing confidence", Mindray has actively implemented the action plan and shared the fruits of development with investors since the release of the action plan of "Double Improvement of Quality and Return" on February 18.
High Dividend Return Investors Pay attention to investor relations management
In order to further implement the national policy on encouraging listed companies to pay cash dividends, actively respond to the opinions of the China Securities Regulatory Commission on promoting multiple dividends of listed companies, and comprehensively consider the return needs of investors and the long-term development of the company, Mindray actively shares the fruits of corporate growth and development, and continuously improves the sense of gain of investors.
In April 2024, the company continued to launch the 2023 annual profit distribution plan, distributing cash dividends of RMB 15 (tax included) to all shareholders for every 10 shares, and planned to distribute cash dividends of RMB 1.819 billion, with a total of RMB 7.032 billion for the above two dividends, and a cash dividend ratio of 60.72% for the year. At the same time, the company will further authorize the board of directors to formulate an interim dividend plan for 2024 according to the actual situation.
According to the data, since Mindray Medical was listed in 2018, it has implemented dividends for six consecutive years, and the cash distribution has increased year by year. From 2018 to 2022, Mindray Medical paid 1.216 billion yuan, 1.824 billion yuan, 3.039 billion yuan, 4.233 billion yuan, and 5.456 billion yuan in annual dividends, accounting for 32.69%, 38.96%, 45.65%, 52.90%, and 56.79% of the attributable net profit for the current period , plus the dividends in the third quarter of 2023 and the planned annual dividends in 2023, the cumulative total dividends are nearly 24.8 billion yuan (including 2 billion yuan of repurchased shares), which is 4 times the amount of IPO funds raised of 5.934 billion yuan. Both in terms of dividend amount and cash payout ratio, it has been increasing year by year, which not only demonstrates Mindray's determination to repay investors, but also shows the market the company's strategic resilience in implementing long-termism, demonstrating the company's sustainable development strength.
In addition, the company attaches great importance to investor relations management, maintains positive interaction with investors, effectively improves the transparency of the company's operation and management, and discloses the company's information truthfully, accurately, completely, timely and fairly. It is worth mentioning that in the complete annual information disclosure evaluation after listing, the company's information disclosure evaluation was all A.
In the future, Mindray will continue to practice "investor-oriented", earnestly fulfill the responsibilities and obligations of a listed company, continue to take into account strategic development planning and shareholder returns, and continue to increase returns to shareholders while ensuring the company's internal and external business expansion, so as to create greater value for shareholders.
Focus on high-quality development and stride towards the top 20 of global medical devices
The confidence of large dividends and investor relations management comes from Mindray's long-term and stable performance growth.
According to the 2023 annual report, Mindray achieved operating income of 34.932 billion yuan, a year-on-year increase of 15.04%, and net profit attributable to the parent company of 11.582 billion yuan, a year-on-year increase of 20.56%, the company's net profit attributable to the parent company has maintained a growth rate of more than 20% for 6 consecutive years, with a compound growth rate of net profit of 25.51% and a compound growth rate of operating income of 20.49% in 5 years, sustaining high-quality growth.
Insisting on independent innovation as the core driving force is one of the important reasons for the continuous growth of Mindray's performance. The company has maintained high R&D investment for many years, adhered to independent innovation, and mastered core technologies. Based on the R&D and innovation platform of global resource allocation, it has 12 R&D centers distributed in China, the United States, Europe and other places, forming a huge global R&D, marketing and service network. By the end of 2023, Mindray had 4,425 R&D personnel with strong product engineering and system integration capabilities. In 2023, Mindray's R&D investment will be 3.779 billion yuan, accounting for 10.82% of operating revenue, a year-on-year increase of 18.43%.
In the Action Plan for Improving Quality and Return, the company mentioned that Mindray Medical will continue to invest in R&D, seize development opportunities through R&D accumulation, technology iteration, and market cultivation, improve product cost performance while breaking through core key technologies, provide affordable products and high-quality medical services to hospitals and the people, and let more people share high-quality life care, thereby increasing the company's market share and ultimately achieving a win-win situation for the government, hospitals, patients, and manufacturers.
Long-term R&D and continuous cultivation of internal skills have enabled Mindray to once again achieve an accelerated breakthrough in its high-end customer base at home and abroad and further increase its market share in 2023.
In the domestic market, by the end of 2023, Mindray's products covered nearly 110,000 medical institutions and more than 99% of tertiary hospitals in China, and the product penetration rate has further increased. With the advantages of rich product solutions and information technology, the company's products have been more widely recognized in large public hospitals, especially in the shortcomings, hospital reconstruction and expansion and strategic reserve projects have greater competitive advantages, so that the company has won a number of provincial and above large-scale political procurement bidding projects.
In the international market, in 2023, the company will achieve overseas revenue of 13.550 billion yuan, a year-on-year increase of 15.83%, accounting for 38.79% of revenue. Thanks to the company's continuous breakthrough in overseas high-end customer base and accelerating the construction of localized platforms, the international market will continue to grow rapidly in 2023, with the growth of developing countries exceeding 20%, and the compound growth rate of overseas in vitro diagnostic production lines exceeding 30% for two consecutive years.
Focusing on the three major business areas of life information and support, in vitro diagnostics and medical imaging, Mindray Medical has the most comprehensive product line in the industry through more than 30 years of development and more than 20 years of overseas layout, and its products are sold to more than 190 countries and regions around the world. Among them, a number of the company's products have been able to compete with international first-line machinery companies, and the global market share of monitors, anesthesia machines, and ventilators ranks first. In 2022, the company's revenue ranked 27th among global medical device companies, up 4 places from 2021 and 9 places from 36th in 2020.
As stated in the action plan of "Double Improvement of Quality and Return", as a multi-product and global platform company, Mindray has worked together to seize market opportunities and withstand challenges in recent years, and has achieved the established growth goals. Based on the optimism about the future development of the industry and the company's prospects, Mindray has the ability and confidence to be among the top 20 medical devices in the world by 2025 and to attack the top 10 or even higher industry positions in the world.
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