Mindray Issues Guidance - Analyst Blog
13 Gennaio 2012 - 3:15PM
Zacks
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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