Sometimes I just don't understand investors.
Granted, a lot of that growth was due to the acquisition of U.S.-based Datascope, but growth at home in China was up 45% even excluding the positive effects of currency changes. China isn't dead yet.
The company did reduce its revenue guidance for the year, but that was mostly due to changes in expected currency exchange rates. It's not like the company has much control over the changes and it's still sticking with its EPS guidance, so I'm not sure what's got investors throwing a temper tantrum.
Mindray is in a pretty recession-proof industry and, while U.S. hospitals might be cutting back on spending, that could actually be a benefit for Mindray. Because of its cheap manufacturing capabilities in China, it should be able to offer comparable products for less and that might help it gain some traction against established companies -- like fellow Rule Breakers pick SonoSite
In China, Mindray is in an even better position, because the government is promoting health care as part of its stimulus package. That'll benefit companies like Mindray and 3SBio
Growth in China may have slowed down some, but companies that sell products there shouldn't be cast aside. You wouldn't know it looking at the year-to-date returns of China-based stocks like PetroChina
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