Shenzhen-based Mindray Bio-Medical Electronics has soared since going private in 2016, and is taking market share from both GE and Siemens.

And in May it got put into the MSCI China All Shares Heath Care 10/40 Index, which “captures large and mid-cap representation across China A‐shares, B‐shares, H‐shares, Red‐chips, P‐chips and foreign listings,” according to MSCI, and which “aims to reflect the opportunity set of China share classes listed in Hong Kong, Shanghai, Shenzhen and outside of China.”

Its stock has risen 51 percent, making it “a top performing equity on the ChiNext board” — and that has given it a $29 billion valuation, according to Bloomberg.

But the business news agency now warns that some think it may have gone a bit too far, a little too fast, with a P/E ratio of 39, despite a Bloomberg forecast of a 20 percent revenue growth and 21 percent annual income growth from now to to 2021.

That's because the consensus price target for Mindray is 158.90 yuan, showing a possible 3.8 percent downside from present lofty stock values.

The company is “looking expensive,” although not too much so versus other China high-fliers, like Chinese soy sauce maker Foshan Haitian Flavouring & Food, Xiong Qi of Windsor Capital Management told Bloomberg.

The firm, founded in 1991, had been listed in the U.S. on the NYSE until being taken private by a subsidiary of Excelsior Union Limited for $1.9 billion in 2016, according to a company statement at the time.

The maker of in-vitro diagnostics equipment, life monitoring systems and medical imaging equipment including color ultrasound devices has been liked by institutional investors, thanks, in part, to its rising R&D investment, hitting 25.5 percent annual growth, and favorable government support as China seeks to become a bigger player in the global market, according to Bloomberg. Some of these investors include Fidelity Management, China Asset Management, and Bosera Asset Management, according to the news agency. Foreign investors now hold 13.13 million shares, a rise of 80 percent in holdings post the MSCI announcement.

At present prices, there are those who think the values are a bit high and are holding off. Dai Ming, portfolio manager of Hengsheng Asset Management Co., told Bloomberg that, “Mindray’s valuation is too high. We will wait for a pull back to get in at a more reasonable price.”

In April, Mindray made news when it announced that it had hit a milestone of installing 1,000 TE7 portable ultrasounds in North America.

“We are pleased to announce we have reached a significant milestone in our popular TE7 platform, with the sale of the 1000th system,” said Maher Elhihi, director of ultrasound marketing, Mindray. “Like other Mindray systems, the TE7 system recently underwent a substantial upgrade, which enhanced image quality and functionality. This allows our customers to stay at the cutting-edge in imaging technology and recognize excellent value for their investment.”

The system is based on Mindray’s Living Technology.

“The power of our Living Technology is to enable feature and functionality migration throughout our platform base,” noted Elhihi. “From our premium cart-based to our point-of-care systems, we are cross-leveraging advances through significant R&D efforts to keep our clinical partners at state-of-the-art ultrasound imaging capabilities.”