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Don't know got shadow or not......CIMB.....anaylst give this one a 100% upside price from 19cts.......hehehe(got shadow means human, under the sun no shadow means wat?)hehehe...........
Reiterate BUY. Another set of sterling results came from Action in 2Q10, with sales and net profit leaping 77% and 30% yoy, respectively. This marked its 10th consecutive quarter of double-digit earnings growth.
We believe the momentum will continue in 3Q (typically the busiest for consumer electronics products), driven by its continuous efforts to deliver innovative consumer lifestyle entertainment products. We leave our FY10-12 profit forecasts unchanged.
Action remains attractive, at 3x CY11 P/E and below its CY10 book value. Our target price remains S$0.40, offering more than 100% upside. This pegs Action at slightly below 6x CY11 P/E.
* Solid topline growth, reflecting its success with Philips. Action shipped close to 1.5m DVD players (mostly portable type) in 2Q, up from about 1m in 1Q10.
• 10th consecutive quarter of double-digit yoy profit growth. Bottom line would have been stronger, excluding S$278k for assets written off.
• Drop in gross margins and spike in staff costs. We believe the margin decline was the result of its product mix (increased volume of standalone DVD players) and higher raw material costs, while higher staff costs were due to more manpower required to support the higher volume.
• Extended cash cycle days as longer A/R and inventory days were not offset by longer AP days. The longer A/R days were due to extended credit terms for its major customer from 75 days to 90. This resulted innegative free cash flow and marginal net debt in the quarter. Action is working with its suppliers to lengthen its credit terms.
Positives:
• Order momentum remains robust in the seasonally strongest 3Q withno signs of a slowdown from key customer. However, order visibility for 4Q remains cloudy at this moment. This is not surprising as we have assumed peak earnings in 3Q and a slowdown in 4Q.
• Raw material availability has improved, and there is more room forprice negotiations in 3Q. This could ameliorate ongoing pricing pressure.
Negatives:
• Action is affected by higher labour costs, which jumped by 20% in June. It is trying to rope in its major customers to help in the rising costs. It is also trying to improve productivity to counter the higher wages.
• More aggressive bidding by some domestic consumer electronics makers, which is affecting Action in terms of pricing.
Recent story from the company's AGM: ACTION ASIA: On dividend cut, soaring growth prospects, etc
Nomura Singapore highlights positive surprise for BIOSENSORS, reiterates buy call
Analysts: Lim Jit Soon, CFA, and Tsai Yuan Yiu
Event. According to its press release dated July 29 2010, Devax Inc announced that the company has recevied CE Mark for its AXXESS Biolimus A9 Eluting Bifurcation Stent System, allowing the company to initiate sales in the EU and other CE markets (mainly Asia ex-Japan, China and Latin America).
Licensing agreement with BIG. Under a licensing agreement dated December 2003, Biosensors is entitled to: i) receive royalties, including an annual minimum royalty, based on an undisclosed percentage of AXXESS revenue and ii) provide stent-coating services to Devax at a premium above cost.
How big is the "bifurcation" market? According to In Vivo, bifurcation disease (vascular disease located at the division of one artery into two) remains one of the largest unmet clinical needs in interventional cardiology, affecting roughly 20% of patients who undergo PCI; the potential market size is esimated to be US$1.3bn worldwide. Based on our preliminary research, AXXESS is one of the few pioneers in this technology with a CE mark, and none of the Big Fours has been successful in commercializing a similar product so far.
More possibilities going forward? Biosensors' new CEO Jeff Jump's key strategy going forward is to broaden its product range to better leverage on its existing sales/R&D/manufacturing infrastructure, via both acquisitions and internal R&D. Therefore we think there are more possibilities to this partnership, which could potentially involve a distributorship. In this regard, we believe Biosensors would be able to provide speed-to-market by sharing its knowledge base on reiumbursement approval process in key markets such as France and access to its existing direct sales infrastructure.
Potential royalties not in our estimates. We have not factored in the potential royalty stream and stent-coating revenue from Devax given the lack of visibility over the approval timeline previously and the undisclosed royalty formula. While the cashflow potential is unlikely to match Terumo's licensing agreement, we think this reaffirms our investment thesis that there is significant value to be unlocked at Biosensors. Reiterate BUY.
Recent story: BIOSENSORS, COMTEC SOLAR: What analysts say now....
Action Asia's plant in Shenzhen: design, manufacture and assembly of mobile audio and video entertainment products.
Reiterate BUY. Another set of sterling results came from Action in 2Q10, with sales and net profit leaping 77% and 30% yoy, respectively. This marked its 10th consecutive quarter of double-digit earnings growth.
We believe the momentum will continue in 3Q (typically the busiest for consumer electronics products), driven by its continuous efforts to deliver innovative consumer lifestyle entertainment products. We leave our FY10-12 profit forecasts unchanged.
Action remains attractive, at 3x CY11 P/E and below its CY10 book value. Our target price remains S$0.40, offering more than 100% upside. This pegs Action at slightly below 6x CY11 P/E.
* Solid topline growth, reflecting its success with Philips. Action shipped close to 1.5m DVD players (mostly portable type) in 2Q, up from about 1m in 1Q10.
• 10th consecutive quarter of double-digit yoy profit growth. Bottom line would have been stronger, excluding S$278k for assets written off.
• Drop in gross margins and spike in staff costs. We believe the margin decline was the result of its product mix (increased volume of standalone DVD players) and higher raw material costs, while higher staff costs were due to more manpower required to support the higher volume.
• Extended cash cycle days as longer A/R and inventory days were not offset by longer AP days. The longer A/R days were due to extended credit terms for its major customer from 75 days to 90. This resulted innegative free cash flow and marginal net debt in the quarter. Action is working with its suppliers to lengthen its credit terms.
Positives:
• Order momentum remains robust in the seasonally strongest 3Q withno signs of a slowdown from key customer. However, order visibility for 4Q remains cloudy at this moment. This is not surprising as we have assumed peak earnings in 3Q and a slowdown in 4Q.
• Raw material availability has improved, and there is more room forprice negotiations in 3Q. This could ameliorate ongoing pricing pressure.
Negatives:
• Action is affected by higher labour costs, which jumped by 20% in June. It is trying to rope in its major customers to help in the rising costs. It is also trying to improve productivity to counter the higher wages.
• More aggressive bidding by some domestic consumer electronics makers, which is affecting Action in terms of pricing.
Recent story from the company's AGM: ACTION ASIA: On dividend cut, soaring growth prospects, etc
Nomura Singapore highlights positive surprise for BIOSENSORS, reiterates buy call
Analysts: Lim Jit Soon, CFA, and Tsai Yuan Yiu
Biosensors
is entitled to receive royalties for the use of its drug Biolimus A9
and biodegradable polymer formulation, and to provide drug-coating
services.
Event. According to its press release dated July 29 2010, Devax Inc announced that the company has recevied CE Mark for its AXXESS Biolimus A9 Eluting Bifurcation Stent System, allowing the company to initiate sales in the EU and other CE markets (mainly Asia ex-Japan, China and Latin America).
Licensing agreement with BIG. Under a licensing agreement dated December 2003, Biosensors is entitled to: i) receive royalties, including an annual minimum royalty, based on an undisclosed percentage of AXXESS revenue and ii) provide stent-coating services to Devax at a premium above cost.
How big is the "bifurcation" market? According to In Vivo, bifurcation disease (vascular disease located at the division of one artery into two) remains one of the largest unmet clinical needs in interventional cardiology, affecting roughly 20% of patients who undergo PCI; the potential market size is esimated to be US$1.3bn worldwide. Based on our preliminary research, AXXESS is one of the few pioneers in this technology with a CE mark, and none of the Big Fours has been successful in commercializing a similar product so far.
More possibilities going forward? Biosensors' new CEO Jeff Jump's key strategy going forward is to broaden its product range to better leverage on its existing sales/R&D/manufacturing infrastructure, via both acquisitions and internal R&D. Therefore we think there are more possibilities to this partnership, which could potentially involve a distributorship. In this regard, we believe Biosensors would be able to provide speed-to-market by sharing its knowledge base on reiumbursement approval process in key markets such as France and access to its existing direct sales infrastructure.
Potential royalties not in our estimates. We have not factored in the potential royalty stream and stent-coating revenue from Devax given the lack of visibility over the approval timeline previously and the undisclosed royalty formula. While the cashflow potential is unlikely to match Terumo's licensing agreement, we think this reaffirms our investment thesis that there is significant value to be unlocked at Biosensors. Reiterate BUY.
Recent story: BIOSENSORS, COMTEC SOLAR: What analysts say now....
my apologies.....its 6 fold......jump............
Philips reports six-fold rise in profits
Philips reports six-fold rise in profits
THE HAGUE (AFP) - – Dutch electrical equipment and electronics giant Philips reported a six-fold rise in net profit to 262 million euros (340 million dollars) for the second quarter on strong sales in developing countries.
Up from 45 million euros a year earlier and 201 million euros in the first quarter of this year, Philips said its profit was based on a 12 percent rise in sales from a year ago to 6.19 billion dollars.
"Sales performance was especially strong in emerging markets," Philips president Gerard Kleisterlee said in a statement.
"Emerging markets sales growth accelerates to 29 percent, now representing over one third of group sales," added the company's quarterly report.
Sales grew in all sectors of the group's activities, especially in consumer lifestyle electronics which rose by 20 percent compared to the second quarter of 2009, while lighting sales grew by 13 percent, it said.
Philips said its earnings before interest and tax (EBIT) grew 50-fold to 404 million euros from eight million euros in the second quarter of 2009.
"It is encouraging to see that our performance continues to improve despite ongoing weakness in many global markets and economic uncertainty," said Kleisterlee.
For the rest of the year, Philips expected sales to moderate, the statement said, partly due to the "continued but slow recovery in the US and Europe".
For the first six months of the year, the company said its net profit rose to 463 million euros from a loss of 12 million euros in the same period the year before.
Philips employs more than 116,000 people in more than 60 countries, manufacturing medical equipment and televisions, among other things.
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lawcheemeng ( Date: 20-Jul-2010 10:41) Posted:
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one coverage for this ACTION starting again.......
| ACTION ASIA, CHINA NEW TOWN: What analysts now say.... |
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| Written by The NextInsight Team | |
| Friday, 23 April 2010 | |
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Excerpts from latest analyst reports ....  Action Asia's new factory in
Shenzhen is expected to produce 5 m units of products for Philips this
year, up from 3 m in the previous rented factory. CIMB-GK raises target price of ACTION ASIA to 40 cents Analyst: Jonathan Ng  Jonathan Ng, analyst, CIMB-GK Reiterate BUY with higher TP. Action post a solid set of 1Q10 numbers, driven by higher shipments of portable DVD players to its major customer, Philips. We believe the positive momentum will continue, underpinned by its continuous effort to deliver innovative consumer lifestyle entertainment products. We have left our FY10-12 forecast unchanged for now. Action remains attractive, trading at less than 3x CY11 P/E and below its CY10 book value. We have raised our target price from S$0.31 to S$0.40, pegging Action at slightly below 6xCY11 P/E, offering 100% upside potential. What we like: • Robust yoy revenue growth of close to 100%, suggesting that demand for its innovative products via Philips remains strong. • Gross margin expansion despite rising panel prices, reflecting the positive operating leverage. • Strong free cash flow on the back of shorter cash cycle days vs.4Q09, enabling Action to return to marginal net cash position.W What we dislike: * Spike in other operating expenses due to greater R&D, distribution and selling, and warranty expenses as a result of the higher sales. • Rise in inventories vs. 4Q09. However, this was due to anticipation of higher demand in the coming quarter. Recent story: ACTION ASIA: On dividend cut, soaring growth prospects, etc |