Deutsche Bank Reports on Mindray Medical, China Medical Technologies (MR, CMED)
In a report released today, Deutsche Bank commented on Mindray Medical (NYSE: MR) and China Medical Technologies (NASDAQ: CMED). In the report, Deutsche Bank was positive in its outlook for the companies in terms of their potential growth in the Chinese economy.
Deutsche Bank writes, “[Chinese] Government spending is off to a better start than it was in the same period last year. Government spending on healthcare was RMB46.4bn in April 2011, representing 44% YoY growth. Year-to-date government spending is up 51% YoY, which is ahead of last year's pace of 15%. We believe government spending will likely have a positive correlation with device sector growth, despite the fact that it is difficult to quantify. Our due diligence suggestions that Solutions for a Basic Healthcare Facilities, a program for supplying equipment to a county-level hospitals funded by the government, has morphed into a new focus for both domestic device manufacturers and MNCs in 2011.”
Deutsche Bank presently has a Buy rating on both Mindray Medical and China Medical Technologies. Mindray Medical closed the trading day on Friday at $30.44, up from $29.96 at the open. Shares of China Medical Technologies closed the trading day at $11.57, down from the opening price of $11.70.
