Chinese medical devices major
Mindray Medical International Limited
) announced selected unaudited preliminary 2012 results and also
provided sales guidance for 2013. The company will report
detailed results on February 25.
Mindray expects 2012 net revenues to grow roughly 20% year
over year to $1,056 million. According to the company, strong
domestic sales coupled with growth in key emerging markets have
contributed significantly to top-line growth in 2012. It has also
acquired four companies in 2012 to expand its business. The Zacks
Consensus Estimate for 2012 revenues is $1,057 million.
Further, Mindray estimates adjusted revenues to increase 16%
to $207 million in the fourth quarter of 2012, which is in line
with the Zacks Consensus Estimate. Adjusted revenues exclude
tax-related one-time benefit associated with the key software
enterprise status ($7.6 million in the first quarter of 2011) and
assume a 15% corporate income tax rate related to the Shenzhen
Management announced that it has achieved significant
operating leverage and generated strong cash flow in 2012. The
Zacks Consensus Estimate for 2012 earnings per share is
Mindray is a bellwether in the Chinese MedTech industry with a
solid international presence. Majority of the products from
Mindray have received CE Mark and/or Food and Drug Administration
("FDA") clearance, which distinguishes the company from its
Mindray maintains a decent product pipeline and brings out
several new products each year. New products contribute in a
major way to Mindray's revenues. In 2012, the company launched 10
For 2013, Mindray projected revenue growth of 17% on the back
of solid sales in China and in other emerging markets. It plans
to invest in research and development and engage in mergers and
acquisitions as well as strategic alliances to expand its product
offerings. The company aims to roll out 7 to 10 new products this
year. Moreover, the company will step up its sales, marketing and
service efforts in certain markets and continue to focus on
bottom-line growth as well.
Mindray's competitors, in different niche segments, include
) and GE Healthcare, a part of
). The company has entered the premium segment globally, where
its competitive advantage is still unclear. However, health care
reforms in China and the U.S. may reduce demand for Mindray's
products. The company also faces fierce competition, which leads
to price erosion over time.
The stock currently carries a short-term Zacks Rank #4 (Sell).
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