CHINA/HEALTHCARE

Stock Rating:

OUTPERFORM

12-18 mo. Price Target SGD1.80

BIG:SP - SES SGD1.33

3-5 Yr. EPS Gr. Rate 13%

52-Wk Range SGD1.70-SGD1.03

Shares Outstanding 1,751.0M

Float 1,080.0M

Market Capitalization SGD2,277.4M

Avg. Daily Trading Volume 5,670,588

Fiscal Year Ends Mar

2013E ROE 2.4 %

Biosensors International

An Innovative DES Player Gaining Global Traction

Initiate with Outperform

SUMMARY

We initiate coverage of Biosensors (BIG:SP or SGX:B20.SI) with an Outperform.

Biosensors is a Singaporean coronary stent developer and manufacturer with global

operations. It is among the promising innovative Asian med tech companies that we

liken to the Japanese auto companies in the 1970s. Biosensors excels at drug-eluting

stents and adopts various distribution methods that fit different markets to promote

its products successfully. It's leading in China's DES market, and taking share and

growing at double-digits in Europe. We expect Biosensors to grow revenue/EPS at

16.6%/12.9% 2012-2015 CAGRs. The stock trades at 13x/11x our FY14E/15E EPS

estimates of SGD0.10/0.12. Our PT implies 18x our FY14E EPS of S$0.10.

KEY POINTS

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of the promising Asian innovative medical device companies. It has developed

expertise in the cardiovascular device area and plans to expand into multiple highvalue

medical device segments. We believe it could evolve into a global leader.An Innovative Asian Medical Device Company. We view Biosensors as one

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markets. We estimate Excel, Biosensors' DES, holds 22.9% market share in

China. We estimate Biosensors will deliver a 15% 5-year CAGR in China.

BioMatrix Flex’s potential SFDA approval could further enhance its leadership.Leader in China. The DES (drug-eluting stent) market is growing fast in emerging

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approval on January 28th, a near-term catalyst for the stock and a long-term

revenue growth driver. Biosensors' recent debt offering and our recent meeting

with management suggest to us the company could soon undertake M& A activity

to diversify into new medical device areas.R& D and M& A. BioFreedom, Biosensors' polymer-free DES, gained CE Mark

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  believe the stock is attractive based on our 12- to 18-month PT of SGD1.80,

implying 18x our FY14E EPS and 35% upside potential.Valuation Attractive. We expect 3-year revenue/EPS CAGRs at 16.6%/12.9%

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