Chinese medical devices major Mindray Medical International Limited recently revealed that it will showcase over 60 offerings at the 69th China International Medical Equipment Fair to be held in Shenzhen, China during April 17 and April 20, 2013. Mindray will exhibit its most current offerings from each of its three segments, namely medical imaging systems, patient monitoring and life support and in-vitro diagnostic. Besides, the company will showcase certain offerings from units that it has acquired recently.
The outlook for Mindray is favorable. The company forecasts revenue growth of 17% or more for 2013. It also expects adjusted net income for the year to increase by a minimum of 15% year over year.
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 Mindray’s revenues. In 2012, the company launched 10 new products and acquired four companies.
The company has entered the premium segment globally, where its competitive advantage is still unclear. Also, on the negative side, health care reforms in China and the U.S. may reduce demand for Mindray’s products. Competition is fierce and leads to price erosion over time.
The stock carries a Zacks Rank #2 (Buy). Cyberonics Inc. , Given Imaging Ltd. and Cepheid each carry a Zacks Rank #1 (Strong Buy) and are expected to do well.