Mindray Medical International (NYSE: MR) is
a Chinese manufacturer of medical equipment. It offers a variety of patient monitoring devices, diagnostic laboratory instruments and ultrasound imaging systems to clinics, hospitals and other health care providers in China and abroad. Mindray is headquartered in Shenzhen and operates sales/service offices in Asia, Europe and the Americas.
The firm pleased investors last week, when it reported Q1 EPS of 23 cents and revenues of $89.3 million. Analysts had been looking for 19 cents and $84.4 million. The CEO attributed success in the quarter to a high level of international activity and more the forty percent growth in domestic sales. Management also guided FY08 revenues to $560-$580 million ($454.88M consensus).
MR shares
popped through 200-day moving average resistance on the news and then began to consolidate the gain in a bullish "flag" pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.
Brokers recommend the issue with two "strong buys", five "buys" and two "holds". Analysts expect a 43% average annual growth rate, through the next five years. The MR Sales Growth rate (63.25%), EPS Growth rate (53.33%), Operating Margin (28.00%), Net Profit Margin (26.64%), Return on Assets (20.91%), Return on Investment (25.81%) and Return on Equity (26.11%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 37% of the outstanding shares. Over the past 52 weeks, the stock has traded between $24.97 and $45.19. A stop-loss of $33.80 looks good here.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold a position in the stock discussed above.
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