China Medical Technologies (NASDAQ: CMED), a maker of medical diagnostics equipment, is a buy from Asia stock expert Jim Trippon in his The China Stock Digest.

"The stock has rebounded strongly after a difficult summer -- partly because of news about the firm’s share buyback program and because of its earnings report.

"In September, the CMED board authorized the company to repurchase up to $30 million worth of its outstanding American Depositary Shares for a period of one year, commencing on October 1, 2009.

"Meanwhile, CMED reported its financial results for the fourth fiscal quarter and fiscal year ended March 31, 2009 and the first fiscal quarter ended June 30, 2009 on September 1.

"The company reported revenues from continuing operations of $36.4 million for 4Q 2008, representing a 37.3% increase from the corresponding period of 2007.

"Its revenues from continuing operations are currently generated from two product lines, ECLIA diagnostic systems and FISH diagnostic systems.

"ECLIA system sales for the fourth quarter of 2008 were $20.3 million, representing a 23.9% increase from the corresponding period of 2007. The year-over-year growth in the ECLIA system sales was primarily due to the increasing utilization of CMED’s ECLIA analyzers by hospitals.

"FISH system sales for the fourth quarter of 2008 were $16.0 million, representing a 59.3% increase from the corresponding period of 2007. Gross margin increased to 75.8% for 4Q 2008 from 58.6% for the corresponding period of 2007. 

"Revenues for the full fiscal year of 2008 from continuing operations were $121.5 million, representing a 51.6% year-over-year increase.

"These are very encouraging numbers and support our confidence in this growing diagnostic medical device firm. CMED is still a buy, selling below its buy-up-to price of $22 a share."