Morgan Stanley has singled out six prominent Chinese medical device manufacturers to track into their upcoming first-quarter earnings reports, calling attention to three central themes that could determine near-term performance: the pace of sequential recovery, the strength of overseas expansion, and the impact of recent product innovation.
The investment bank frames the sector as operating in a complicated environment. On the demand side, domestic growth in China has been soft. On the geopolitical and logistics side, intensified U.S.-China tensions and transport disruptions related to the Middle East war are potential headwinds that could affect orders and shipping timelines.
Mindray Bio-Medical
Morgan Stanley expects Mindray to report overall sales growth in the first quarter in the low single digit percentages. The firm says ongoing pressure in China should be balanced to some degree by positive growth overseas. On profitability, net profit is forecast to decline in the first quarter on a year-over-year basis in the single digit percentage range, and could show a larger decrease once foreign exchange losses are accounted for. Investors should watch management commentary for signs of sequential recovery, updates to the 2026 outlook, inventory levels in distribution channels, prospects for overseas markets, progress on an H-share listing, and the company’s merger and acquisition strategy.
Shanghai United Imaging Healthcare Co
Morgan Stanley projects that Shanghai United Imaging will deliver overall sales growth in the high teens percentage range in the first quarter of 2026, despite a tough comparable from the first quarter of 2025. The firm expects the company to continue capturing share, and that net profit in the first quarter of 2026 will rise in the high single digit percentage range, slightly trailing the top-line expansion. So far, the Middle East conflict has had limited effects on overseas orders, with transportation impacts described as largely manageable. The note also highlights that liquid helium represented less than 20 percent of MR’s cost of goods sold and that the company has multiple alternative suppliers from other regions.
APT Medical Inc
Morgan Stanley anticipates approximately 30 percent overall sales growth for APT Medical in the first quarter of 2026. The firm expects continued momentum driven by PFA and notes that the first quarter of 2025 presented only a mild base for comparison. Despite strong top-line guidance, first-quarter net profit is expected to underperform the revenue increase due to elevated operating expense ratios tied to PFA promotion and research and development.
Shenzhen New Industries
The brokerage forecasts single digit revenue growth for Shenzhen New Industries in the first quarter, with flat sales in China offset by more than 10 percent growth overseas. In the Chinese market, average selling prices are expected to decline by the mid-single digit percentage range, but this should be largely offset by volume gains achieved through market share increases. On profitability, Morgan Stanley expects net profit to fall year-over-year, citing a tough first-quarter 2025 comparison base.
Imeik Technology Development Co
Morgan Stanley expects ongoing macroeconomic and competitive pressures to weigh on sales of Imeik’s existing product portfolio in the first quarter of 2026. The firm warns that gross profit margins could further compress if competitive-driven price cuts persist, leading to additional margin deterioration. The brokerage also notes a product development item of interest: Imeik recently licensed a wrinkle treatment called Hutox from South Korean cosmetic firm Huons Biopharma, but Morgan Stanley does not expect Hutox to contribute to earnings until the second half of 2026.
Across the board, Morgan Stanley’s note underscores heterogeneity in near-term performance expectations by company, with some firms forecast to deliver relatively strong top-line growth while profitability trends vary due to expense mix, foreign exchange effects and competitive pricing dynamics. The report highlights overseas markets and new-product trajectories as potential offsetting factors to weaker domestic demand, while emphasizing that logistics and geopolitical pressures remain uncertainties for the group.
Analyst focus going into earnings:
- Sequential recovery signals and management commentary on demand trends.
- Progress and outlook for overseas expansion, including order patterns and transport resilience.
- Contributions from product launches and promotions, and their impact on expense ratios.