KUALA LUMPUR, June 12 (Bernama) -- Selected blue-chip counters trading at attractive valuations helped Bursa Malaysia close higher on Friday, despite cautious market sentiment driven by developments in West Asia, volatility in crude oil prices and uncertainty over the global interest rate outlook. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 4.10 points or 0.24 per cent to 1,683.63 compared with Thursday's close of 1,679.53. The key index opened 5.34 points stronger at 1,684.87 earlier today and moved between 1,679.72 and 1,685.39 throughout the session. Market breadth was negative, with losers leading gainers 533 to 479, while 561 counters were unchanged, 1,130 untraded and 33 suspended. Turnover fell to 2.79 billion units worth RM2.31 billion from 3.32 billion units worth RM2.88 billion yesterday.
Shenzhen Mindray Bio-Medical Electronics Co., Ltd. (SZSE:300760) has seen its stock rise 6.8% in the past three months, prompting questions on whether strong financials are behind the move. A closer look at its return on equity (ROE) suggests the market may indeed be rewarding solid fundamentals.
ROE Highlights
ROE: 26% (CN¥11b net profit ÷ CN¥44b shareholders' equity)
This means the company generates CN¥0.26 in profit for every CN¥1 of equity.
Its ROE is far above the industry average of 7.6%, underscoring efficient use of capital.
Earnings Performance
Net income grew 16% over five years, while the broader industry saw a 3.5% decline.
Strong ROE combined with above-average profit retention has supported steady earnings expansion.
Dividend Policy & Retained Earnings
Median payout ratio: 58%, leaving 42% for reinvestment.
Despite paying out most of its profits as dividends, the company has maintained earnings growth.
Shenzhen Mindray has consistently paid dividends for six years, signaling a commitment to shareholder returns.
Analyst Outlook
Payout ratio is expected to stay around 65% over the next three years.
ROE is forecast to rise further to 31%, even with limited changes to profit retention.
Bottom Line
Shenzhen Mindray Bio-Medical’s high ROE and steady income growth suggest strong operational efficiency. The company balances rewarding shareholders through dividends while still reinvesting enough to grow earnings. However, analysts see growth slowing slightly ahead, making future performance dependent on sustaining its high returns on equity.
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