Fueled by the COVID-19 pandemic, the Shenzhen-based Chinese medical device provider is benefiting from a rise in global business.
Mindray Medical (300760:SZ), which has the highest market value in the Chinese medical device industry, announced that it expects to see a semi-annual revenue between CNY 9.85 billion and CNY 10.67 billion, with an increase of 20% – 30% compared to the 2018 semi-annual income. The net profits (excluding non-controlling interest) are estimated to grow between 38% and 48%.
Since the outbreak of COVID-19, the company’s life support and information, including respirators, monitors and medical imaging equipment, is in a soaring demand.
Only fewer than two years after an IPO on Chinese A-share market in 2018 October at a price of CNY 89.1, Mindray's stock grew over 266.3% to close to CNY 326.41 as of July 14, 2020. Before the pandemic outbreak, the price was stumbling at a range between CNY 160 and CNY 194. The soaring increase in the last few months has lifted Mindray to a new breakthrough but it also indicates a contradiction: either this giant was largely undervalued before the epidemic, or the outbreak expressly created a new growth pivot for Mindray.