What does “stand to” mean in the sentence, “China’s Health Ministry stands to profit from the industry’s growth?”

Solution 1:

Webster.com has this entry for "stand", which explains precisely this usage:

6 b to be in a position to gain or lose because of an action taken or a commitment made ("stands to make quite a profit")

Solution 2:

Perhaps it would help if you thought of the phrase as "stand" and "to profit".

"Stand" here is being used in such a way as to mean that the Chinese Health Ministry (CHM) is in a particular position. In this case, this position is one which will grant it profit.(to profit)

Thus, the Chinese Health Ministry "is in a position"(stands) to profit...