Mindray Medical International Limited
(
MR
), a leading Chinese medical device manufacturer, recently revealed
certain unaudited early results for 2011. In addition, the company
issued net sales guidance for 2012.
Mindray forecasts net revenues of about $878 million for the
year ended December 31, 2011, up approximately 24.7%. The company
anticipates adjusted net income to rise at least 10% year over
year. Adjusted net income assumes a corporate income tax rate of
15% for the Shenzhen unit.
Mindray was pleased to generate robust double-digit sales growth
for fiscal 2011 despite the difficult global macro economic
situation. Sales were buoyant in China on account of positive
hospital and government spending patterns. Emerging markets
(outside China) were a key growth driver and the company captured
market share in developed nations.
The company released as many as 13 new products in 2011. It
engaged in 4 new acquisitions during the year.
For 2012, Mindray expects its sales to increase not less than
18% year of year. The company will provide a detailed guidance for
2012 with its 2011 financial results.
Mindray is a bellwether in the Chinese MedTech industry with a
solid international presence. A key distinction with domestic
competitors is that the majority of Mindray's products have CE Mark
and/or Food and Drug Administration ("FDA") clearance.
Mindray maintains a decent product pipeline and brings out
several new products each year. New products contribute in a major
way to its revenues.
The company has entered the premium segment globally, where its
competitive advantage is still unclear. Also, on the negative side,
health care reform, in China and the U.S., may reduce demand for
Mindray's products. Competition is fierce and leads to price
erosion over time.
Mindray's competitors, in different niche segments, include
General Electric
(
GE
),
Philips
(
PHG
) and
Siemens
(
SI
). Our Neutral recommendation is supported by a short-term Zacks #3
Rank (Hold).
GENL ELECTRIC (
GE
): Free Stock Analysis Report
MINDRAY MEDICAL (
MR
): Free Stock Analysis Report
KONINKLIJKE PHL (
PHG
): Free Stock Analysis Report
SIEMENS AG-ADR (
SI
): Free Stock Analysis Report
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