UBS: Mindray Bio-Med (300760) 2026 European Healthcare Conference Feedback
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Following discussions with Mindray Bio-Medical investor relations at the 2026 UBS European Healthcare Conference, UBS maintains a constructive outlook on the company. The brokerage reiterates a Buy rating with a 12-month target price of 284.0 yuan, based on a discounted cash flow valuation implying a 2026 price-to-earnings multiple of 40.1 times.
Domestic revenue is expected to return to year-over-year growth in 2026, primarily driven by a recovery in the second half. However, the company continues navigating structural headwinds. The in-vitro diagnostics (IVD) market in China is projected to contract by another 15 percent in 2026 due to aggressive reagent price cuts under volume-based procurement. Mindray aims to offset this pressure by expanding its chemiluminescence immunoassay market share in tumor markers and thyroid panels from approximately 10 percent in 2025 to 15 percent in 2026. Separately, equipment procurement tenders grew 26 percent by value in 2025, but actual revenue recognition was delayed by channel destocking, which reduced inventory from six months to roughly three months.
Internationally, the company guides for double-digit revenue growth in 2026, supported by strong momentum in emerging markets and Europe. Management anticipates overall net profit growth for the year, although both gross and net margins may contract slightly due to procurement pressures. Overseas operating margins currently match domestic levels but are expected to eventually surpass them. Progress regarding a potential Hong Kong listing remains a key topic.