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Being very busy with work recently. No time to monitor stock. Guys (those who long), are you still holding on? What are your target price, for my reference only! Thanks.
More Growth Opportunities Ahead
Cordlife Group Limited’s (Cordlife) 4Q FY12 performance was largely in line with expectation and both full year revenue and PAT account for 101% of our forecasts. Cordlife recently announced the swap of its 10% stake in Guangzhou Tianhe Nuoya and US$4.0m cash for 10% stake in China Cord Blood Corporation. We view this as a value accretive deal that will bring about growth to the company. The potential acquisition of new markets via its right of first refusal with Australia listed Cordlife Ltd will spur growth further. That said, we also expect Cordlife to pay out part of its income and distribute 2 S cents dividend in FY13. Recommend Increase Exposure (S$0.740).
Results Summary:
4Q revenue grew 6.5% YoY to S$7.5m as cord blood banking services climbed about 200 YoY to 1,900. For the full year, Cordlife handled 7,200 vs 6,600 in FY11. Gross profit margin dipped 1.7% points YoY to 70.0% due to higher cost of maternal blood testing of about S$120 per cord blood unit. Excluding the latter cost, we estimated that gross profit margin would have inched up 0.6% YoY instead. Nonetheless, 4Q gross profit margin was the highest for FY12 as the company attained economies of scale. 4Q administrative, selling and marketing expenses rose 25% YoY to S$4.1m as a result of higher headcount, director fees, compliance expenses and marketing expenses. The impact was somewhat mitigated by higher finance income (from convertible bond) and lower tax rate (due to over provision in FY11). Consequently, 4Q PAT climbed 0.9% YoY to S$2.3m. Trade receivables (rose S$3.2m YoY to S$32.8m) and deferred revenue (rose S$2.9m YoY to S$12.5m) continued to grow as the company garnered more demand for their services. Cordlife also moved S$17.5m to fixed deposit (ranging from one year to three years) and we view these cash as reserves for emergency.
Cordlife also proposed 1.8 S cents special final dividend this quarter. Together with the previously declared 0.2 S cents special dividend and the 1.8 S cents interim dividend, the dividend yield for the company stood at 7.3%. We anticipate a dividend payout of 2 S cents in FY13.
Company Update:
Two weeks ago, Cordlife announced the swap of its 10% stake Guangzhou Tianhe Nuoya (GTN) and US$4.0m cash for 10% stake in China Cord Blood Corporation (CCBC, which owns the other 90% stake in Guangzhou Tianhe Nuoya). This transaction brings about several benefits namely:
1) Cordlife will own tradable shares (CCBC is listed on NYSE) instead of illiquid ones
2) Other than the Guangdong province, Cordlife is now able to enjoy the growth in the Beijing municipality and Zhejiang province (which CCBC owns 100% and 90% respectively).
3) Cordlife will have a stronger relationship with CCBC.
4) CCBC is a growth company with three years’ revenue and PAT CAGR of 28.8% and 84.2% respectively.
Following this deal, Cordlife will probably record a one-off disposal gain of S$4.7m in 1Q FY13. This deal looks value accretive as Cordlife is in essence paying US$4.0m for exposure into Beijing and Zhejiang and converting their stake in GTN into a tradable asset.
The new Hong Kong cord blood tissue banking services (which commenced in March 2011) booked S$0.7m revenue in FY12 which formed about 10% of the contribution from the region. We expect this segment to continue growing over the next two years as more parents opt for such service for their children. Singapore’s contribution will also surge if similar services were introduced.
Back in Singapore, the new Yishun building is on track to TOP in 1Q 2013 and we may see gross profit margin improvement thereafter as the new rental rate will be around S$0.50 psf month vs S$4.50 currently. As such, we project gross profit margin to improve from the current 69.6% in FY12 to 71.5% in FY15. Cordlife proposed a total of 2 S cents special dividend and 1.8 S cents ordinary dividend in FY12. Assuming that the special dividend payout is meant for FY11’s profit and the ordinary dividend is for FY12’s profit (Refer to Cordlife IPO Prospectus page 48 for more details), Cordlife had a payout ratio of 54.9% in FY11 and 60.5% in FY12. Going forward, we expect Cordlife to have a payout ratio of between 47% and 63% in FY13-15.
Forecasts and Valuation:
We are upgrading our FY13F PAT to S$14.4m in view of the one-off disposal gain. We also expect FY13F dividend per share to be around 2 S cents, indicating a dividend yield of 3.8%. Cordlife’s acquisition of CCBC and potential acquisition of new markets via its right of first refusal with Australia listed Cordlife Ltd will generate growth for the company. We estimate three year revenue and PAT CAGR of 8.5% and 17.8% respectively between FY12 and FY15. Maintain Increase Exposure with an intrinsic value of S$0.740.
source: SIAS
Watch this. Tmr may fly high after Lee Hsien Loong speech on perks for babies
Quote:
" Overall, net profit declined by 18.3% to S$6.9 million in FY2012 mainly due to oneoff IPO expenses as well as higher capital expenditure to drive business growth.
However, without one-off IPO expenses, FY2012 net profit increased 4.1% to S$8.8 million."
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_609BF7749A16655F48257A63007FE541/$file/Cordlife_FY2012NR_Final.pdf?openelement
Cordlife Group has reported a net profit decline of 18.3 per cent to S$6.9 million for its fiscal year ended 30 June 2012.
This was despite a 12.1 per cent increase in its full-year revenue to S$28.8 million.
The cord blood and tissue banking service provider attributed its weaker bottomline performance to one-off IPO expenses, as well as higher capital expenditure to drive business growth.
Cordlife Group listed on the Singapore Exchange (SGX) Mainboard on March 29 this year.
The Group has proposed a final, 1-tier tax exempt special dividend of 1.8 cents, payable on 14 November 2012. This brings the total dividend declared to 3.8 cents since its listing.
Cordlife Group said it remains optimistic that its key markets in Singapore and Hong Kong remain promising, despite headwinds in the global economy.
The firm's new headquarters and facility at Yishun A'Posh Bizhub will be ready during the first quarter of 2013.
Executive director and chief executive director of Cordlife, Jeremy Yee, said the new facility will increase its current capacity to exploit economies of scale and reduce the uncertainty of future costs.
Cordlife also anticipates strong demand in Hong Kong, and has entered into transactions with the China Cord Blood Corporation (CCBC) to expand service coverage within China.
Today, open market purchase by CEO @ 0.525 per share.
| 1. | Date of change of Shareholding | 24-08-2012 |
| 2. | Name of Registered Holder | YEE PINH JEREMY |
| 3. | Circumstance(s) giving rise to the interest or change in interest | Open Market Purchase | |
| # Please specify details |
| 4. | Information relating to shares held in the name of the Registered Holder | ||||||||||||||
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SGD 0.018 Per 1 Ordinary share Tax Exempted (1-tier) Final 30/06/2012 002 The dividend is paid under the one-tier tax exempt system.
Whats the near term price target?
$0.585 is mine view.
$0.585 is mine view.
Wow! Strong buying in Cordlife today.
Watch out for 0.57. Good luck. 
'Someone' keep selling 1lot by 1lot. Dunno wat is 'someone' target price.
Whether move up or not think got to see that 'someone' happy or not.
Whether move up or not think got to see that 'someone' happy or not.
Moving up soon?
still looking good. if it stays like this at close then more upside tomorrow.
Have potential to be re-rated to higher PE Ratio!
Good luck to you too Ms Bishan.
bishan22 ( Date: 16-Aug-2012 11:37) Posted:
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Next stop 0.57. Good luck.
ballball ( Date: 16-Aug-2012 11:19) Posted:
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ya, i m still holding on.
Wow 0.52 now, may see more upside soon.
Bot yesterday @ 48. It's moving now.
profit at at 1 cent after selling is $10 per lot and $100 per 10 lots... if bought 10lots also good, can buy a few lunches )