"Domestic Medical Device Leader’s Third Listing: Mindray Medical Targets Internationalization"
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“The leading domestic medical device company” has finally taken the first step toward a Hong Kong stock market listing.
Recently, Mindray Medical (300760.SZ) submitted IPO application materials to the Hong Kong Stock Exchange, starting its journey toward a dual listing on the “A+H” markets.
This is Mindray Medical’s third time going public, having previously been listed on both the US and A-share markets.
The core purpose of this listing is for Mindray Medical to focus on overseas markets, which is indeed key to unlocking performance potential.
On one hand, growth in the domestic market has slowed due to factors such as longer income recognition cycles for hospital tenders and cost control measures at medical institutions; on the other hand, one of Mindray’s core businesses—ultrasound—is currently facing competition from United Imaging Healthcare (688271.SH), with internal competition intensifying.
Against this background, using the Hong Kong IPO to further enhance its reputation in the international market will indeed help boost Mindray Medical’s performance.
However, valuation may also be a challenge that Mindray Medical must face directly.
With fundamentals showing weakness, Mindray Medical’s market value has evaporated by nearly 20% this year, which may bring more uncertainty to its Hong Kong issuance.
Under Attack from All Sides?
As early as 20 years ago, Mindray Medical went public in the US, acquiring the American Datascope patient monitoring business and opening up the local market.
But 10 years later, Mindray delisted from the US and returned to the A-share market in 2018.
Therefore, this Hong Kong listing is Mindray Medical’s third IPO.
However, unlike the previous two IPOs which featured rapid performance growth, Mindray Medical appears “somewhat uninspired” this time. In the first three quarters of 2025, revenue and net profit attributable to the parent were 25.834 billion yuan and 7.57 billion yuan respectively, down 12.38% and 28.83% year-on-year.
The main reason is pressure on domestic business.
Since last year, as the pace of medical equipment tenders slowed, the domestic medical device industry as a whole saw a decline in performance.
This year, although procurement activity has somewhat recovered, the time from open bidding to income recognition has lengthened, leading to continued performance pressure for Mindray Medical.
The challenges don’t stop there—new entrants are disrupting the original market structure.
Mindray Medical’s business is divided into four main segments: in vitro diagnostics, life information and support, medical imaging, and emerging businesses—all ranked first domestically.
Mindray’s ultrasound business holds a “unique” position in China, being the only provider capable of offering comprehensive ultrasound system suites covering all levels.
This advantage is mainly reflected in breakthroughs in high-end ultrasound products. For example, Mindray’s ultra-high-end universal ultrasound Resona A20’s “AFM Matrix Transducer” improves electroacoustic conversion efficiency by 50%, generating higher signal-to-noise ratio and penetration in images, with a market tender price around 2 million yuan.
In the first half of 2025, Mindray’s ultra-high-end ultrasound series achieved sales of nearly 400 million yuan, close to last year’s annual level.
But now, this sector is facing much stronger competitors.
Recently, United Imaging Healthcare (UIH) announced that three of its ultrasound products have received approval from the drug regulator, models uSONIQUE Pulse, uSONIQUE Genesis, and uSONIQUE Venus, which can be widely used in various departments and applications such as general body, cardiology, internal medicine, and obstetrics.
This is UIH’s first launch of ultrasound products, signaling its first direct confrontation with Mindray in this field.
Compared to previous domestic ultrasound competitors faced by Mindray, UIH clearly has stronger brand power and financial resources. Launching several ultrasound models at once, UIH is clearly aiming for the top spot.
According to industry sources, UIH's initial ultrasound models are all high-end, with plans to release economical models later. At the same time, its ultrasound products are seeking CE and FDA market licenses in Europe and the US, possibly obtaining approval as soon as next year.
All these may bring more competitive pressure for Mindray Medical.
Valuation in the Spotlight
Faced with fierce domestic competition, Mindray Medical is turning its attention to overseas markets.
Regarding this Hong Kong IPO, Mindray emphasizes it is not for fundraising, but to increase international market visibility.
“It is important to stress that Mindray has healthy cash flow and abundant cash reserves, so fundraising is definitely not our core reason for the Hong Kong IPO,” the company stated. “Leveraging the international influence of Hong Kong’s capital market allows us to clearly communicate Mindray’s positioning as a ‘global leading, innovation-driven world-class medtech enterprise and leader in digital and intelligent medical solutions’ to global investors, significantly enhancing our brand recognition and influence in the international capital market and global medtech industry.”
Compared with the domestic market, Mindray's overseas business is indeed seeing significant growth.
In the third quarter of 2025, Mindray’s international business grew over 10% year-on-year, with the European market up more than 20%.
According to Mindray’s plan, overseas markets are divided into mature and emerging segments.
For mature markets like Europe and the US, Mindray focuses on continuous breakthroughs with product performance and innovative features to target high-end customers.
For emerging markets like Latin America, the sales strategy is to enter with high value-for-money products to rapidly increase coverage and penetration, meeting local healthcare systems’ needs for high clinical accessibility and resource equalization.
This approach differs slightly from UIH.
This September, UIH Chairman Xue Min said that for new markets like Latin America, UIH adopts a “high-end” strategy, cooperating with universities and research institutes to secure the high-end market.
This may also relate to product characteristics. Mindray's product lines include IVD reagents and consumables, with wider coverage than imaging equipment.
This IPO’s core highlight is Mindray’s planned exploration of potential global acquisition opportunities.
Mindray is already experienced with acquisitions.
Between 2021 and 2023, Mindray completed the acquisitions of Haitai Bio and Desai Diagnostics, rapidly expanding its IVD business; in 2024, it acquired Wellton Medical (688617.SH), entering the electrophysiology field.
However, aggressive acquisitions also bring sizable goodwill, which reached 11.506 billion yuan as of the end of June 2025, accounting for nearly 30% of net assets.
Through acquisitions, Mindray has the potential to further broaden its overseas business boundaries.
However, there is still uncertainty whether launching the Hong Kong IPO at this moment can help Mindray get a favorable valuation.
Due to disappointing fundamentals, Mindray missed out on the strong rally in the A-share market this year, with market value falling by nearly 20% since the start of the year.
This year, leading A-share companies’ Hong Kong IPO valuations have not been ideal.
As the largest Hong Kong pharmaceutical IPO in five years, “Pharma Boss” Jiangsu Hengrui Medicine (600276.SH) made certain concessions in its Hong Kong offering this May, with offering price set at HK$44.05 per share, nearly a 27% discount to the closing A-share price the day before listing;
Recently, innovative drug company Berry Genomics (688506.SH) temporarily suspended its Hong Kong listing due to market conditions, reconsidering the timing of its offering.
However, Mindray believes: “The current Hong Kong capital market is very accommodating to high-quality leading assets and offers higher valuation premiums, making this a favorable time for international capital operations.”
As a leading domestic medtech company, Mindray Medical’s Hong Kong valuation may serve as a reference for the industry.
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