Biosensors: Awaiting trading debut of Microport Scientific's (853 HK) IPO on 24 Sep, which could reignite interest in the stock. Microport is China's market leader in drug-eluting stents (DES) with an est 30% market share. At an indicative IPO range of HK$4.60-6.10/share, Microport is valued at 20-27x FY10 PE vs Biosensors 20x FY11. If Shandong Weigao (1066 HK) current valuation of 38x FY11 PE is any guide, the pricing of Microport's IPO will be at the higher end the range.
Biosensors owns 50% of JW Medical Systems (JWMS), the last remaining private stent maker in China with a significant 20-25% market share. JWMS is a JV between Biosensors & Shandong Weigao. Good support at $0.835 with 1st resistance at $0.90 followed by $1.10 vs Nomura’s $1.20 price target.
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