Mindray - A (300760.SZ): 3Q26 growth inline with small margin pressure; remain OW but cut PT slightly

The 3Q26 earnings call reinforces our confidence in its medium-term growth outlook. Overseas expansion remains the key growth engine, while domestic diagnostics business' market share gains and rapid growth in emerging businesses provide a solid foundation for domestic recovery. Management reiterated its expectation for positive domestic revenue growth in 2026, supported by deeper penetration of leading hospitals, regional laboratory projects and rising IVD consumables sales. While currency and component costs continue to weigh on near-term profitability, we see an increasingly diversified growth mix e.g., emerging businesses, and strong cash generation supporting the investment case. In our model, we slightly tune down the top-line growth trajectory by 1% in FY26-28E and cut gross margin by 0.2ppt for FY26-28E. Our Dec-27 PT has been reduced from Rmb240 to Rmb233. We maintain our OW rating on Mindray.