Stock Name: Biosensors
Company Name: BIOSENSORS INT'L GROUP, LTD.
DBS Vickers Securities in an Oct 6 research report says: "BIG has completed the acquisition of the remaining 50% stake in joint venture company, JWMS.
"We believe its outlook will be rosier on the back of: (i) higher earnings contribution from JWMS; (ii) sustained strong licensing revenue from Terumo; and (iii) longer term catalysts from the approval of BioMatrix Flex for the China market. BioMatrix Flex's approval for sale in China will be a longer term catalyst for BIG. Hypothetically, a 5% market share could add another 8% to FY2012F's revenue of US$312 million.
"We have raised FY12/13F earnings by 56%/34% after taking into account consolidation of JWMS and strong licensing revenue outlook. Our SOTP valuation of BIG at $1.71 translates to 16x forward earnings, equivalent to peers and -0.5 standard deviation PE, 52% potential upside. UPGRADE TO BUY."
Company Name: BIOSENSORS INT'L GROUP, LTD.
| Research House: DBS Vickers | Price Call: BUY | Target Price: 1.71 |
DBS Vickers Securities in an Oct 6 research report says: "BIG has completed the acquisition of the remaining 50% stake in joint venture company, JWMS.
"We believe its outlook will be rosier on the back of: (i) higher earnings contribution from JWMS; (ii) sustained strong licensing revenue from Terumo; and (iii) longer term catalysts from the approval of BioMatrix Flex for the China market. BioMatrix Flex's approval for sale in China will be a longer term catalyst for BIG. Hypothetically, a 5% market share could add another 8% to FY2012F's revenue of US$312 million.
"We have raised FY12/13F earnings by 56%/34% after taking into account consolidation of JWMS and strong licensing revenue outlook. Our SOTP valuation of BIG at $1.71 translates to 16x forward earnings, equivalent to peers and -0.5 standard deviation PE, 52% potential upside. UPGRADE TO BUY."
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