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3941-3960 of 10899
Sorry about the font on the takeaways don't know what happened??
Curious how the volume has been very light for their sell off.
see below:
Growing sales force in direct markets, sales growth weighted towards
2HFY11
France and added headcount earlier in the year. Coupled with the promotion at
major cardiology conferences (EuroPCR in May, TCT in Aug), management
expects sales growth to be weighted towards 2HFY11.
– BIG is investing in its direct sales force in meaningful markets such as��
estimate about 60% of BIG’s revenue is generated from the EU, but it also has a
sizeable cost base in euros. Net-net, we estimate a 5% negative impact on the
bottom line with a 10% decline in the euro.
Revenue guidance of US$135-145mn maintained, but subject to FX risk – We��
for BioMatrix’s approval in China, as regulatory standards in China have become
more complex. Jack Wang, the COO of Biosensors/CEO of JWMS, is in direct
conversations with the SFDA, which appears to be requiring a few more advanced
clinical data.
BioMatrix’s approval in China – Management remains cautious on its guidance��
that the two companies remain in active and productive conversation.
No further updates on JV relationship with Weigao – Management reiterated��
Jeffrey B Jump has over 27 years experience in the medical device industry. He
joined Biosensors in 2003 as managing director for EMEA and was responsible for
establishing the company’s European headquarters in Switzerland.
Yes: Much in line with their last report with showing an increase in net profits for this year and a price target of $1.17. See below:
Closing price on 25 May
S$0.79Price target
S$1.17(set on 15 Mar 10)
Upside/downside
49.0%Difference from consensus
36.0%FY11F net profit (US$mn)
41.90Difference from consensus
naSource: Nomura
Nomura vs consensus
We believe consensus
underestimates BIG’s core earnings
despite recognising its strong
revenue growth trend.
��
ActionBIG reported a good set of 4QFY10 results, in-line with our estimates, but beating
consensus by 40%. DES revenue grew 68% y-y, driven by market share gains in
existing markets and BioMatrix’s launch in France. Notwithstanding the FX risk, we
remain positive on the stock as its strong operational trend is evident. BUY.
��
CatalystsContinued momentum in its forthcoming results, the potential value-unlocking of its
50% stake in domestic DES (drug-eluting stent) supplier in China, JWMS, and
Japan’s approval of Terumo’s Nobori, whose technology is licensed from BIG.
Anchor themes
The US$5bn DES industry is one of the most profitable segments in the medical
technology space, with market share changes driven by innovation. Start-ups like
Biosensors, with leading-edge technology, are subject to takeovers by incumbents.
Bational Jit Soon Lim, CFA
N
Drilling downExhibit 1. Biosensors 4Q FY10 results
FYE Mar (US$mn) 4QFY09 3QFY10 4QFY10 (% y-y) (% q-q) Remarks
Revenue
Critical care 3.0 3.4 2.9 (3.2) (15.0) Stable business
Other int. cardiology 6.9 9.9 9.1 32.4 (8.2) Increased OEM sales in Asia and significant catheter
sales to JWMS
DES 10.7 16.5 17.9 67.6 8.9 Continued growth in existing markets & new market
such as France
Licensing & royalties 1.8 2.6 2.9 60.0 14.0 Strong 14% q-q growth by Terumo’s Nobori
22.4 32.3 32.8 46.8 1.6Gross profit
Critical care 1.1 1.0 0.9 (15.2) (7.7)
Interventional cardiology (DES + other) 12.2 19.8 21.1 73.1 6.6
15.1 23.4 25.0 65.0 6.8IC margin (%) 69.5 75.1 78.1
earlier quarters
Licensing & royalties 1.8 2.6 2.9 60.0 14.0
Strong margins due to conservative accounting inJV contribution (JWMS)
expense of margins (27% net margin vs 43% in 3Q)
Net profit (ex-exceptional) (2.8) 9.8 9.1 nm (7.3) Full year net profit met 96% of FY10 forecast
2.8 3.1 2.4 (13.7) (23.4) Strong revenue growth trend (45% y-y) at theSource: Company data, Nomura research
Other key takeaways
��
2HFY11
France and added headcount earlier in the year. Coupled with the promotion at
major cardiology conferences (EuroPCR in May, TCT in Aug), management
expects sales growth to be weighted towards 2HFY11.
Growing sales force in direct markets, sales growth weighted towards– BIG is investing in its direct sales force in meaningful markets such as��
estimate about 60% of BIG’s revenue is generated from the EU, but it also has a
sizeable cost base in euros. Net-net, we estimate a 5% negative impact on the
bottom line with a 10% decline in the euro.
Revenue guidance of US$135-145mn maintained, but subject to FX risk – We��
for BioMatrix’s approval in China, as regulatory standards in China have become
more complex. Jack Wang, the COO of Biosensors/CEO of JWMS, is in direct
conversations with the SFDA, which appears to be requiring a few more advanced
clinical data.
BioMatrix’s approval in China – Management remains cautious on its guidance��
that the two companies remain in active and productive conversation.
No further updates on JV relationship with Weigao – Management reiterated��
Jeffrey B Jump has over 27 years experience in the medical device industry. He
joined Biosensors in 2003 as managing director for EMEA and was responsible for
establishing the company’s European headquarters in Switzerland.
I agree with you...
Though I will trade any stock which has a good chart setup that fits my criteria.
This is one of the reason why I don't trade Biosensors.
Since their listing, never given a single cent of dividend.
They have been in the reds for a couple of years, but last year, they made a profit.
Even so, they did not announce dividend.
lostbell ( Date: 01-Jun-2010 11:30) Posted:
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Why they did not announce dividend?
If BIG make more than 30 mil profit, they should announce 1 cent dividend, this will cost BIG around 10 mil only right?
Small investers will not be happy. big investers always wanted BIG with an attractive price for any MA opportunity.
Interesting how persistent CS is in their analysis. I suppose they subscribe to the theory that if one remains consistent - they will eventually be right.
BUT in the meantime many fortunes can be made and lost.
Or as Ralph Waldo Emerson (1803-1882) writer, stateman and philosopher stated " A foolish consistency is the hobgoblin of little minds"
their recent analysis below:
Biosensors International ----------------------------------------------------------Maintain NEUTRAL
Better 4Q and FY10 results; more focus on sales & marketing but uncertainty ahead EPS:
▲ TP: ◄►Jinsong Du / Research Analyst / 852 2101 6589 / jinsong.du@credit-suisse.com Justin Liu / Research Analyst / 852 2101 7350 / justin.liu@credit-suisse.com
●
on 26 May. FY10 total product revenue beat high-end guidance by
2% and net profit beat Credit Suisse’s forecast by 32% due to the
implementation of cost reduction programmes.
Biosensors reported better-than-expected 4Q10 and FY10 results●
believes it achieved its target of an 8-10% global DES market
share. With Biomatrix launched in Hong Kong, Korea and France,
and next generation DES, BioMatrix Flex has received CE Mark
approval. We expect momentum for DES to continue in FY11.
With a 68% YoY increase in DES sales in 4Q10, the company●
delay in Biomatrix’s approval in China, and uncertainty over
discussions with Weigao on a JV partnership, we expect
uncertainties regarding the FY11E profitability level to remain.
However, due to the economic situation in Europe, a potential●
to be acquired has become limited. The new CEO will focus more
on sales and marketing, and a cost-reduction programme; we
therefore increase our FY11E EPS estimate by 23%.
With the management changes, we think Biosensors’ opportunitySource: Company data
BioMatrix approval in China may be delayed
Because there are more clinical data requirements in China, the
company believes that its schedule for SFDA approval on Biomatrix is
at risk of being delayed, and more sales expenses may be charged.
The incremental clinical data requirements from the SFDA indicate
that entry barriers to China’s stent market have increased significantly
and should benefit existing players, in our view.
As a reminder, the JV with Weigao did not sell BioMatrix stents. The
JV contributed 46% to Biosensors’ FY10 net profit.
New CEO appointment
The company announced that Jeffrey Jump would become the new
CEO. He used to be SVP of sales and marketing. After the transition,
we believe the company will become more focussed on expanding its
sales network.
FY11E revenue guidance maintained
For fiscal year 2011, management maintained its FY11E guidance
that product revenue, excluding licensing and royalty revenues, will
range from US$135.0 mn to US$145.0 mn. Increased sales would
continue to be driven by the drug-eluting stent business. The company
expects profitability to grow over the FY10 level on an overall basis,
with the effect of higher revenues being offset by increased expenses
required for revenue growth and development of future products.
Price (26 May 10 , S$) 0.81
TP (Prev. TP S$) 0.75 (0.75)
Est. pot. % chg. to TP (7)
52-wk range (S$) 0.88 - 0.46
Mkt cap (S$/US$ mn) 858.0/ 608.1
Bbg/RIC BIG SP / BIOS.SI
Rating (prev. rating) N (N) [V]
Shares outstanding (mn) 1,059.27
Daily trad vol - 6m avg (mn) 10.4
Daily trad val - 6m avg (US$ mn) 9.5
Free float (%) 57.2
Major shareholders Dr Yoh-Chie Lu
(18.9%)
Performance 1M 3M 12M
Absolute (%) 0.6 (4.7) 43.4
Relative (%) 12.1 (2.8) 19.0
Year 3/09A 3/10A 3/11E 3/12E 3/13E
Revenues (US$ mn) 119.0 116.2 154.5 195.2 247.0
EBITDA (US$ mn) 19.3 26.7 23.8 26.1 40.0
Net profit (US$ mn) (1.1) 32.1 25.7 31.9 45.5
EPS (US$) 0.00 0.03 0.02 0.03 0.04
- Change from prev. EPS (%) n.a. n.a. 23 43
- Consensus EPS (US$) n.a. n.a. 0.02 0.03 0.04
EPS growth (%) n.a. n.a. (19.7) 24.1 42.5
P/E (x) NM 19.0 23.7 19.1 13.4
Dividend yield (%) 0 0 0 0 0
EV/EBITDA (x) 24.5 18.3 19.0 15.8 9.2
P/B (x) — — — — —
ROE (%) (1.1) 22.2 12.3 12.7 14.6
ironside ( Date: 31-May-2010 16:36) Posted:
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ironside ( Date: 31-May-2010 13:49) Posted:
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You want to make money like a trader, but uses an investor strategy.
You use a long-term strategy, but choose a short-term stock.
You read the report like a long-term investor, but expect a short-term result.
Wrong strategy, wrong stock, wrong analysis, wrong expectation.
There is no meaning to this stock, you just need to learn how to trade properly.
ironside ( Date: 31-May-2010 13:49) Posted:
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ironside ( Date: 31-May-2010 13:49) Posted:
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Invested this this stock for many years, FY10 finally see profit and profit will be better in FY11. After the announcement on 26.5.10, I expected the price to go up, instead it went down $0.005. Today it is down $0.01, can someone help to give meaning to this, thks.
"Resume" from BIG via announcement at sgxnet.
Mr. Jump has over 27 years experience in the medical device industry. Mr. Jump joined Biosensors in 2003 as Managing Director for Europe, Middle East and Africa. During that time he established the Company’s European headquarters in Switzerland, initiated the research and development team that created the Company’s unique auto-micro pipette coating process, and played a key role in designing the Company’s landmark LEADERS clinical trial. In 2007, he took on the global sales and marketing role, and in 2008, the global regulatory and clinical departments were added to his responsibilities. Prior to joining Biosensors, Mr. Jump served as CEO of Xitact Medical Simulation (acquired by Mentice AB). He also held senior managerial positions and has served on the board of various multi-national medical device companies. Mr. Jump received a Bachelor of Science degree from Indiana University, a graduate degree in management research from the University of South Australia, and a Master’s degree (MSc) from the London Business School.
Note: Newbies, this info can be obtained from Sgx website.
DYODD and BPFBMS-LOL
The initiative taken for the concern is very serious and need an
attention of every one. This is the concern which exists in the
society and needs to be eliminated from the society as soon as
possible.
I am very pleased with the thought and don’t feel like adding
anything in it. It a perfect answer.
| smart card |
iPunter ( Date: 28-May-2010 15:12) Posted:
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This is another glamour stock...
Which receives much attention from many big boys...
