China’s Mindray Medical Intl. (MR)

Stock of the Day
Mindray Medical International Ltd.
Monday’s Closing Price: MR – $24.95


Mindray Medical International Limited engages in the development, manufacture, and marketing of medical devices in China. It offers approximately 40 products through its three segments: Patient Monitoring Devices, Diagnostic Laboratory Instruments, and Ultrasound Imaging Systems. The company’s Patient Monitoring Devices segment primarily offers portable PM-9000 multi-parameter patient monitoring device and approximately 15 patient monitoring devices. The Diagnostic Laboratory Instruments segment offers a range of approximately 10 hematology and biochemistry analyzers that perform analysis on blood, urine, and other bodily fluid samples for clinical diagnosis and treatment. The Ultrasound Imaging Systems segment offers approximately 10 ultrasound imaging systems and it would introduce the color Doppler ultrasound imaging system for use in several clinical areas, such as urology, gynecology, obstetrics, and cardiology. The company sells its products primarily to distributors and directly to hospitals, clinics, government agencies, original design manufacturers, and original equipment manufacturers. It also offers its products in Asia and Europe. Mindray Medical International was incorporated in 2005 and is headquartered in Shenzhen, the People’s Republic of China – Provided by Yahoo Finance

What catches my eye the most about this stock is the number of shares bought and sold during the most recent reporting period! The buy to sell ratio is 39-to-1 which represents institutional accumulation in my opinion and I get warm and fuzzy when these professional buyers support a stock I own (disclosure: I do own shares prior to writing this post). The amount of fundamental data is limited on the young Chinese company but I have listed what I can find using a variety of sources (Yahoo giving me the most data).

Looking at the chart, we can see that the stock is gaining support along the 50-day moving average and is within 15% of a new all-time high (set back in December 2006 at $27.20). The weekly chart shows a flat base that has been forming over the past seven weeks with potential for an up-side breakout. A 200-d m.a. has not formed at this point in time but will be valuable in the future. Overall, I like this young stock and I like the market it comes from.

Here is an insert from a recent SFO magazine article:
Are Communists The World’s Best Capitalists?
by: Jim Trippon

How China has become a driving force in today’s marketplace.

“Find the Stars
I feel the key to success is to buy good companies. I recommend companies that will participate in the best of the Chinese growth story without exposing investors to undue risk. In the long run, I believe the Chinese big cap/value market will bounce above worldwide indices because of the continued growth of both internal and external consumer markets. Many blue-chip Chinese companies pay regular and reliable dividends. Substantial and dependable dividend payments have a soothing way of leveling out the bumps in a volatile market. A solid dividend, sometimes as high as seven percent, helps take the sting out of market volatility.”


Sector: Health Care
Industry: Health Care Equipment
52wk Range: 15.20 – 27.20

Institutional Numbers:
Money Market: 21
Mutual Fund: 75
Other: 4

Shares Bought Last Period: 6.4 million
Shares Sold Last Period: 0.2 million

Value of Shares Bought: $156.4 million
Value of Shares Sold: $4.9 million

Top Holder: Emerging Markets Management LLC
2.1 mil Shares for 0.20% of Portfolio
Total Equity Value of Portfolio: $3.2 billion

Available Fundamental Numbers:
Market Cap.: $1.33bb
P/E (ttm): 59.1
PEG Ratio: 1.42
Profit Margin (ttm): 24.68%
Operating Margin (ttm): 26.31%
Qtrly Revenue Growth (yoy): 21.60%
Qtrly Earnings Growth (yoy): 131.00%
Total Cash: 37.45M
Total Cash Per Share: 0.354
Total Debt: 5.55M
Total Debt/Equity: 0.021
Current Ratio: 6.712
Book Value Per Share: 2.539
Operating Cash Flow : 60.14M

Yearly (2007): 0.59E
Yearly (2006): 0.47E
Yearly (2005): 0.29

Revenue (millions):
Yearly (2007): 269.15E
Yearly (2006): 190.03E
Yearly (2005): 134.9

Growth Estimate (Next 5 years):


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