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3601-3620 of 10899
Heard DBS downgraded to a hold at S$1.20. BUT OCBC upgraded( S$1.35) and NOMURA upgraded(S$1.50)
OCBC Company Update
10 November 2010
Results MITA No. 010/06/2009
Current Price: S$1.22
Fair Value: S$1.35
SINGAPORE
Company Report Results MITA No. 013/06/2010
Reuters Code BIOS.SI
ISIN Code B20
Bloomberg Code BIG SP
Issued Capital (m) 1,086
Mkt Cap (S$m / US$m) 1,325 / 1,025
Major Shareholders
Autumn Eagle Ltd 29.5%
Free Float (%) 45.2%
Daily Vol 3-mth (‘000) 17,312
52 Wk Range 0.675 - 1.260
Turnaround story continues as expected
2Q11 results largely within expectations.
International Group (BIG) reported its 2Q11 results with revenue
increasing 33.9% YoY and 10.4% QoQ to US$36.5m. Net
profit increased 31.6% YoY and 161.7% QoQ to US$8.5m.
Both revenue and core earnings were largely within our
expectations. Gross profit margin and EBIT margin also
showed good improvement at 78.7% (vs. 70.1% in 2Q10 and
75.7% in 1Q11) and 25.8% (vs. 15.2% in 2Q10 and 22.6% in
1Q11) respectively. For 1H11, revenue increased 30.4% to
US$69.5m, meeting 43.8% of our FY11 revenue forecast
(44.0% of consensus); and net profit rose 10.2% to US$11.7m,
meeting 27.8% of our full-year earnings figure (30.1% of
consensus). While this seems to be on the low side, it was
due to exceptional items including charges related to the
revaluation of warrants as well as the restructuring of BIG's
US operations. Excluding these one-off items, 1H11 net profits
would have increased 95.3% to US$21.1m. BIG has also
guided that profitability for 2H11 is expected to be higher than
in 1H11.
Biosensors
Growth driven by BioMatrix.
stent (DES) saw a 63.4% YoY surge in sales to
US$20.9m in 2Q11, which helped to offset a decline in sales
of other interventional cardiology products. There was an
increase in penetration rates in existing markets and continued
expansion in new geographical areas such as Taiwan. This
change in revenue mix (64.5% of product revenue in 2Q11 vs.
51.1% in 2Q10) has helped to drive up gross margins as
BioMatrix DES fetches a higher selling price.
BIG's flagship BioMatrix drugeluting
Organisational changes to drive China strategic focus
BIG announced changes to its organisation structure in line
with the recent change in major shareholder. Mr. John Zhao
(CEO of Hony Capital) and Mr. Yuan Bing (MD of Hony Capital)
were appointed as Non-Executive and Non-Independent
Directors of BIG. Mr. Jeffrey Jump and Dr. Jack Wang have
also been appointed as Co-CEO. Mr. Jump would continue to
lead the company's strategy outside of China while Dr. Wang
will focus on BIG's operations and its China strategy. Coupled
with the expertise of Hony Capital, this shows BIG's intent to
drive its China strategic focus. We view this as a positive
move given the potential of the Chinese DES market.
.
Maintain BUY
in BIG's gross margins moving forward and fine-tuned our
assumptions. We continue to be sanguine about BIG's growth
prospects and believe there is further upside ahead. As such,
we reiterate our
estimate from S$1.30 to S$1.35.
. We have taken into account the improvementsBUY rating and revise our DCF-based fair value
Correction.....In my opinion, this is far from the Climax yet. It is only the foreplay before even the actual act play. Run and you will miss all the fun and the final ecstatic climax...... Don`t forget the new owner is by the name of `Hony ``who is famous for making deal and zeal.
greendino ( Date: 09-Nov-2010 21:37) Posted:
| results out...all priced in...buying climax achieved...time to take profit |
|
Besides Nomura ( Target raised from S$1.20 to S$1.50) OCBC research raised Biosensors from S$1.30 to S$1.35
fragaria ( Date: 10-Nov-2010 09:20) Posted:
| Biosensors Target Raised To S$1.50 From S$1.20 By Nomura |
|
Biosensors Target Raised To S$1.50 From S$1.20 By Nomura
OBSERVATIONS:
Earning report VERY solid!!! NO NEGATIVE surprises. Financial guidance a little conservative but on the whole accurate. New geographic market approvals; New unique novel products addressing underserved markets to hit sales & earnings streams within short time; China & Japan market approvals in short time. New products and mkt approvals NOT in guidance. Guidance has upsides.
Counter has a big tailwind that should propell it forward: M&A activity in Singapore; Microport value in Hong Kong; New strategic investor - Hony: New International Institutional Investors - Fidelity, etc,
STRONG Singapore & Asia economies and bull financial markets. Finally, US market in begining of bull market - small pullback today stopping above 200 day moving average for all major sectors in US economy setting new floor for bull move.
If stock pulls back, it will NOT be for long. All fundamentals and technicals very strong. RUN at your own loss.
Just my observations and conclusions
Better run if it fall tml....blowing south wind...
james87 ( Date: 10-Nov-2010 00:04) Posted:
| lets see how far this wind will bring biosensor tml... |
|
lets see how far this wind will bring biosensor tml...
yes agree..mkt trend is blowing northernly winds...
One must also not ignore market trend.
The next quarter is just a short 3 months away...
results out...all priced in...buying climax achieved...time to take profit
In view of the market sentiment, the price is not 'down'...
It looks more like a shakeout...
allright ( Date: 09-Nov-2010 15:21) Posted:
| Thought the organizational changes looks promising as there is a shared CEO indicating hopefully that the approval from China is soon? Yet the price is down now at $1.22. Waiting for results after 5 |
|
Just listened to the video conference. A few things captured my attention.
A very confident presentation by Jeff Jump, the Co-CEO.
He mentioned specifically that sales of Biomatrix has increased (and he uses the word 'of late', meaning lately or very recently), and especially after the Sept 2010 TCT conference as more and more physicians realised the importance of added safety in using a biodegradable polymer, due to the 76 % reduction and 50 % reduction in mortality in Stemi patients and complex patients.
When asked if the company is pursuing other areas (other than DES), he mentioned that there is a possibility, BUT THEN with the DES mkt doing so well, there seems to be no urgency. (or sort of in his reply).
He also uses the word 'iminent approval' of the biomatrix in Japan, when discussing licensing revenue from Terumo.
From the looks of it, the 2nd half (meaning Oct 2010 - Mar 2011) will be better in terms of net earnings, but there is also a possibility of increase R&D expenses due to commencement of a large clinical trial for Bio-Freedom.
Again not a call to buy/sell. Good to listen to the video conference yourself and you will know what I mean.
Not bad for 2Q, this stock will rise to a new height.
BIOSENSORS REPORTS CONTINUED STRONG SALES GROWTH AND RECORD OPERATING RESULTS IN THE SECOND QUARTER OF FISCAL 2011
Singapore 9 November 2010 - Biosensors International Group, Ltd. (“Biosensors” or the “Company”, Bloomberg: BIG SP) today announced financial results for the second quarter of fiscal year 2011 (“2Q FY11”) and the fiscal six months ended 30 September 2010 (“1H FY11”).
For 2Q FY11, Biosensors reported total revenue, including licensing and royalties, of US$36.5 million, a US$ 9.3 million (34%) increase over the US$27.2 million reported in the second quarter of fiscal year 2010 (“2Q FY10”). Sales of drug-eluting stents (“DES”) increased to US$20.9 million in the quarter, a 63% increase over 2Q FY10, and a 19% increase over the first quarter of fiscal year 2011 (“1Q FY11”). The Company reported US$8.4 million in sales of other interventional cardiology products (“IVP”), compared to US$9.3 million in 2Q FY10. Sales of critical care products (“CCP”) in 2Q FY11 were steady versus the previous quarter at US$3.1 million. Licensing revenues in 2Q FY11 increased to US$4.0 million from US$2.1 million in 2Q FY10, driven primarily by increased DES sales by one of the Company’s licensees.
Total product revenues in 1H FY11 were US$61.8 million, up 30% from the US$47.4 million reported in the fiscal six months ended 30 September 2009 (“1H FY10”). DES revenues for 1H FY11 were up 59% to US$38.6 million compared to US$24.3 million for 1H FY10. Other IVP sales increased moderately in 1H FY11, to US$17.2 million from US$16.9 million in 1H FY10. CCP sales remained comparable at US$6.1 million versus US$6.3 million in 1H FY10.
“We are very pleased with our continued revenue growth,” said Biosensors’ Co-CEO Jeffrey B. Jump. “Strong demand for our products has been maintained as we expand our share in all of our accessible markets. We also continue to achieve our operational milestones, in particular strong clinical results for both our internally developed BioMatrix and BioFreedom product families, as well as for our Sparrow and Axxess specialty drug-eluting stents, recently acquired from CardioMind and Devax respectively. We believe that we have the technology necessary to attain a very strong leadership position in the interventional cardiology market.”
Research and development (“R&D”) expenses, which include costs for new product development and testing, clinical trials, patent registration and regulatory approval, were US$3.3 million in 2Q FY11 compared to US$3.6 million in 2Q FY10. In 1H FY11, R&D expenses were US$6.5 million compared to US$7.1 million in 1H FY10. The decrease in research and development expenses was mainly due to lower clinical trials expenses as well as decreased payroll- and office-related expenses.
Sales and marketing expenses were US$11.4 million in 2Q FY11 compared to US$8.1 million in 2Q FY10, and US$20.8 million in 1H FY11 compared to US$15.3 million in 1H FY10. The increases were due mainly to higher headcount costs as we continue to expand our sales force and marketing activities in Europe, Asia and Latin America, as well as increased warehousing and selling expenses associated with rapid growth.
General and administrative expenses were US$4.5 million in 2Q FY11 compared to US$4.3 million in 2Q FY10, and US$9.0 million in 1H FY11 compared to US$8.9 million in 1H FY10. The increase was mainly due to increased professional fees.
Included in 2Q FY11 is the equity method of accounting for the Company’s 50% ownership interest in JW Medical Systems Ltd (“JWMS”) which resulted in net income of US$4.6 million, compared to US$3.7 million for 2Q FY10, and US$9.8 million in 1H FY11 compared to US$6.7 million in 1H FY10. JWMS recorded DES sales of approximately US$21.7 million for 2Q FY11, compared to US$16.0 million for 2Q FY10 and US$44.9 million in 1H FY11 compared to US$31.9 million in 1H FY10.
In 2Q FY11, the Group reported a net profit of US$8.5 million (0.79 US cents per basic and 0.76 US cents per diluted share), compared to a net profit of US$6.4 million (0.61 US cents per basic and 0.60 US cents per diluted share) in 2Q FY10. The Group’s net profits for the quarter included a non-cash charge of US$2.7 million related to the revaluation of warrants issued in connection with notes payable issued in December 2009. Adjusted for the effect of this non-cash charge, the Group’s 2Q FY11 net profits would be US$11.2 million (basic and diluted earnings per share would be 1.04 US cents and 1.00 US cents, respectively). Adjusted for these non-cash charges, net profits, basic earnings per share and diluted earnings per share all grew more than 60% versus 2Q FY10.
For 1H FY11, the Group reported a net profit of US$11.7 million (1.09 US cents earnings per basic and 1.05 US cents per diluted share) compared to a net profit of US$10.6 million (1.00 US cent earnings per basic and 0.99 US cents per diluted share) in 1H FY10. Adjusted for non-cash charges of US$3.4 million related to revaluation of warrants and US$ 6.0 million in restructuring charges recorded in 1Q FY10, net profits for 1H FY11 would be US$21.1 million (earnings per basic and diluted share would be 1.96 US cents and 1.90 US cents, respectively). Adjusted for these charges, net profits, basic earnings per share and diluted earnings per share increased more than 90% compared to 1H FY10.
“Our record operating profits reflect strong execution of our strategic plans. Investments in our sales and marketing infrastructure continue to produce exceptional revenue growth. At the same time, continual improvement in our manufacturing process has helped drive our gross margins even higher. Our R&D and clinical programs continue to deliver innovative products with compelling data, and the effects of our restructuring efforts are beginning to be reflected in our other operating expenses. These efforts, combined with the continued strong performance of our strategic partners and the promise of our recent acquisitions, position Biosensors for a very bright future”, Mr. Jump concluded.
TA aficionados will love this stock's chart very much...
Thought the organizational changes looks promising as there is a shared CEO indicating hopefully that the approval from China is soon? Yet the price is down now at $1.22. Waiting for results after 5
ya same thot.
