MHUA - Why Shares of Meihua International Soared This Week
Shares of Chinese disposable medical device maker Meihua International Medical Technologies (NASDAQ: MHUA) were up 50.3% for the week as of Friday morning, according to to data provided by S&P Global Market Intelligence . The stock closed last week at $16.25 and reached a 52-week high on Friday when it hit $24.43 in early trading. The stock's 52-week low is $2.60 and it is up more than 185% over the past year.
The stock, already riding high after the company mentioned on Feb. 8 that it saw applications for ChatGPT to develop online health consultation services, gave investors another reason to be interested this week. On Wednesday, the company said it was building a team to develop a robotic surgical system, complete with the related hardware and software for such systems. The number of robotic-assisted surgeries (RASs) is low in China, so there's plenty of room for growth.
Bear in mind this healthcare company only began trading on the Nasdaq Stock Market after its initial public offering last year. Investors need to be wary with a company, particularly one in China, with such a short track record. The company cleaned out its C suite late last year, appointing a new CEO, CFO, and directors, so that could be another warning sign. On the positive side, the company appears to be profitable. In the company's unaudited first-half results, it reported revenue of $54.8 million, up 13% year over year, and net income of $6.6 million, down 28% over the same period last year.
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Why Shares of Meihua International Soared This Week