China Medical Technologies Inc. (China Medical) announced its preliminary 4Q 08 and FY 2008 results on 19 June 2009. China Medical's revenue growth in 4Q 08 was broadly in-line with our estimate. At current price levels, we believe the ADR is fairly priced. Hence, we maintain our HOLD rating for the ADR. We will reassess our target price and rating in our next update report, once the company announces its 4Q 08 and FY 2008 results....

China Medical plans to market its products to approximately 400 Tier-1 hospitals in FY 2008 and improve its FISH probe sales through direct marketing to multiple departments in the same hospital, while promoting its ECLIA diagnostic kits in Tier-1 as well as Tier-2 hospitals in China. China Medical received the State Food and Drug Administration (SFDA) approval for its HIV reagent kit in the first half of FY 2008. We believe recurring sales from ECLIA reagents in…

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China Medical Technologies Inc.’s (China Medical) ADR experienced a significant decline of 25.3% since our 2Q 08 update report, dated 23 December 2008, associated with the negative impact of divesting the HIFU business, coupled with slowdown in the Chinese economy and general weakness prevailing in global financial markets. We expect launch of the HPV system in FY…