"Domestic Medical Device Leader" Listed for the Third Time: Mindray Aims for Internationalization

"The 'King of Domestic Medical Devices' has finally taken the first step towards listing on the Hong Kong Stock Exchange.

Recently, Mindray (300760.SZ) submitted its IPO application materials to the Hong Kong Stock Exchange, starting its journey for a dual listing in 'A+H'.

This is Mindray's third IPO, having previously listed on the US and A-share markets.

The core purpose of this listing is for Mindray to strengthen its presence in overseas markets, which is indeed key to unlocking performance potential.

On one hand, the domestic market is experiencing slower growth due to factors such as the prolonged revenue confirmation cycle from hospital tenders and cost control by medical institutions; on the other hand, one of Mindray's core businesses, ultrasound, is facing competition from United Imaging (688271.SH), intensifying the level of 'involution'.

In this context, leveraging the Hong Kong IPO to enhance international market visibility is indeed beneficial for Mindray to boost its performance.

However, valuation may also be a challenge that Mindray has to face.

With weak fundamentals, Mindray's market value has evaporated by nearly 20% this year, which may bring more uncertainty to its Hong Kong issuance.

Attacked from Both Sides?

As early as 20 years ago, Mindray entered the US market and used this opportunity to acquire the life information monitoring business of Datascope, opening up the local market.

But ten years later, Mindray delisted from the US market and returned to the A-share market in 2018.

By this calculation, this Hong Kong listing marks Mindray's third IPO.

However, unlike the rapid growth seen during the previous two IPOs, Mindray appears 'somewhat lonely' this time. In the first three quarters of 2025, revenue and net profit attributable to the parent company were 25.834 billion yuan and 7.570 billion yuan, respectively, down 12.38% and 28.83% year-on-year.

The main reason lies in the pressure on domestic business.

Since last year, with the slowdown in the pace of medical equipment tenders, the overall performance of the domestic medical device industry has declined.

This year, although the pace of procurement has somewhat recovered, the cycle from public bidding to revenue confirmation has been prolonged, leading to pressure on Mindray's overall performance.

The challenges do not stop there; new entrants are disrupting the existing market landscape.

Mindray's business is divided into four major segments: in vitro diagnostics, life information and support, medical imaging, and emerging fields, all of which rank first in the domestic market.

Mindray's ultrasound business holds a 'unique' position in the domestic market, being the only ultrasound imaging provider in China capable of covering all levels with a comprehensive ultrasound system suite.

This advantage is mainly reflected in breakthroughs in high-end ultrasound products. For example, Mindray's ultra-high-end full-body application ultrasound Resona A20 features the 'AFM Matrix Probe', which can improve electroacoustic conversion efficiency by 50%, with images having a higher signal-to-noise ratio and penetration, with a market bidding price around 2 million yuan.

In the first half of 2025, Mindray's ultra-high-end ultrasound series achieved nearly 400 million yuan in sales, approaching last year's total level.

However, this field is now facing stronger competitors.

Recently, United Imaging announced that three of its ultrasound products have been approved for market launch by the Drug Administration, namely uSONIQUE Pulse, uSONIQUE Genesis, and uSONIQUE Venus, which can fully support usage in various departments and application scenarios, including whole body, cardiology, interventional cardiology, and obstetrics This is the first time United Imaging Healthcare has released ultrasound products, indicating that it will face off against Mindray in this field for the first time.

Compared to the domestic ultrasound competitors that Mindray has faced previously, United Imaging Healthcare clearly has stronger brand and financial strength. It has launched multiple ultrasound products at once, clearly aiming for the top position.

According to reports, the ultrasound models initially launched by United Imaging Healthcare are all high-end lines, and they will also introduce economical products in the future. At the same time, their ultrasound products are advancing CE and FDA market licenses in Europe and the United States, with the fastest approval expected next year.

This may bring more competitive pressure to Mindray.

Valuation in Focus

In the face of fierce competition in the domestic market, Mindray is setting its sights on overseas markets.

Regarding this Hong Kong IPO, Mindray emphasizes that it is not for financing, but to enhance its international market visibility.

"It is particularly important to emphasize that Mindray has healthy cash flow and financial reserves, so financing is definitely not the core purpose of our Hong Kong IPO," Mindray stated. "Leveraging the international influence of the Hong Kong capital market, we can clearly convey Mindray's positioning and investment value as a 'globally leading, innovation-driven world-class medical device company and digital healthcare leader' to global investors, significantly enhancing the company's brand awareness and influence in the international capital market and the global medical device industry."

Compared to the domestic market, Mindray's overseas business has indeed seen significant growth.

In the third quarter of 2025, Mindray's international business grew by more than 10% year-on-year, with the European market growing by over 20% year-on-year.

According to Mindray's plan, the overseas market is divided into mature and emerging segments.

For mature markets such as Europe and the United States, Mindray focuses on product performance and innovative features, continuously breaking through to high-end customers;

For emerging markets such as Latin America, the sales strategy is to enter with high cost-performance products, quickly increasing coverage and penetration to meet the local healthcare system's core demand for higher clinical accessibility and homogenization of medical resources.

This approach is slightly different from that of United Imaging Healthcare.

In September of this year, United Imaging Group Chairman Xue Min revealed their overseas sales strategy: "In emerging markets like Latin America, United Imaging adopts a 'high-profile' strategy, collaborating with universities and research institutions to seize the high-end market."

However, this may also be related to product characteristics. Mindray's product line covers consumables such as IVD, with a broader coverage than imaging equipment.

In this IPO, Mindray's core focus is on exploring potential global acquisition opportunities.

Mindray is already quite experienced in acquisitions.

From 2021 to 2023, Mindray completed acquisitions of Haite Bio and Desai Diagnostics, rapidly expanding its IVD business; in 2024, it also acquired Huatai Medical (688617.SH), entering the electrophysiology field.

However, "buying" has also brought a certain scale of goodwill, which reached 11.506 billion yuan by the end of June 2025, with goodwill accounting for nearly 30% of net assets.

With the help of acquisitions, Mindray is expected to further broaden its business boundaries in overseas markets However, whether launching an IPO in Hong Kong at this moment can help Mindray achieve a better valuation remains uncertain.

Affected by weak fundamentals, Mindray has largely missed out on the strong performance of the A-share market this year, with its total market value evaporating by nearly 20% since the beginning of the year.

Since the beginning of this year, the issuance valuations of leading A-share companies listed in Hong Kong have not been ideal.

As the largest IPO in the Hong Kong pharmaceutical sector in the past five years, "pharmaceutical leader" Heng Rui Medicine (600276.SH) made certain concessions during its issuance when it debuted in Hong Kong in May this year, with an issuance price of HKD 44.05 per share, which was nearly 27% lower than the A-share closing price the day before listing;

Recently, innovative pharmaceutical company Bai Li Tian Heng (688506.SH) temporarily suspended its Hong Kong issuance, citing market environment factors, and is reconsidering the timing of the offering.

However, Mindray believes: "The current capital market environment in Hong Kong is highly inclusive and offers a significant valuation premium for high-quality leading assets, making it a favorable time for international capital operations."

As a leading domestic medical device company, Mindray's issuance valuation in the Hong Kong market may also provide more references for the industry