SG: MARKET PULSE: Biosensors, United Envirotech, Midas (30 May 2013)

Stock Name: Biosensors
Company Name: BIOSENSORS INT'L GROUP, LTD.

Research House: OCBC

Price Call: BUY

Target Price: 1.60

Stock Name: UtdEnvirotech
Company Name: UNITED ENVIROTECH LTD

Research House: OCBC

Price Call: BUY

Target Price: 1.03

Stock Name: MIDAS
Company Name: MIDAS HLDGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.54

MARKET PULSE: Biosensors, United Envirotech, Midas

30 May 2013

KEY IDEA Biosensors International Group: Strong product pipeline Biosensors International Group's (BIG) 4QFY13 revenue growth of 0.7% YoY to US$88.8m closely matched our US$88.5m forecast. PATMI excluding exceptional items came in at US$29.8m, a 4.1% increase YoY and exceeded our projection by 6.5%, thanks to an income tax benefit of US$5.9m due largely to a tax refund received. For FY13, revenue and core PATMI jumped 15.1% and 10.5% to US$336.2m and US$111.6m, respectively. Surprisingly, BIG declared its first ever dividend since listing. Declared DPS of US$0.02 translates into a yield of ~2.1%. Looking ahead, we expect BIG to maintain its technological superiority with its new product launches. Management has guided for revenue growth of ~15% for FY14, in line with our expectations. We leave our estimates unchanged, and maintain our fair value estimate of S$1.60. Reiterate BUY as BIG's recent share price weakness represents a good entry point, in our view. (Wong Teck Ching Andy) MORE REPORTS United Envirotech: Long-term prospects still sparkling United Envirotech Ltd (UEL) reported its FY13 results, with revenue jumping 117% to S$185.0m, or just 2% above our forecast, while net profit surged 182% to S$29.5m, and was about 1.6% ahead of our estimate. UEL also declared a final dividend of S$0.005/share. Going forward, management intends to further expand its recurring water treatment revenue by acquiring or investing in more water treatment plants. We believe UEL has the financial means to achieve its goal after its recent fund raising exercises. We are also positive on the company's long-term prospects. Maintain BUY with a higher S$1.03 fair value (versus S$0.90 previously), still based on 13x FY14F EPS. (Carey Wong) Midas Holdings: JV NPRT clinches CNY420m train contract Midas Holdings (Midas) announced last evening that its 32.5%-owned JV company Nanjing SR Puzhen Rail Transport (NPRT) has clinched a train contract worth CNY420m. This is for the supply of 56 train cars for the Shenzhen Metro Line 4 project. Delivery is scheduled to take place from 2013 to 2014, and we believe this may lead to potential contract wins for Midas as it is a key supplier of NPRT. We note that this is the third announced contract order of the year for NPRT, with cumulative contract wins amounting to ~CNY1.47b YTD. While NPRT had been a drag on Midas' recent 1Q13 results, we believe that its contribution to Midas could improve in 2H13, given its order book schedule on hand. Maintain BUY and S$0.54 fair value estimate, pegged to 1.1x FY13F P/B. (Wong Teck Ching Andy)

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