Biosensors

Biosensors: CIMB reiterates Outperform with TP $1.82. Notes the share price has pulled back 12% from a mth ago after FY12 results, mainly from margin concerns over potential mandatory px reductions in China. Maintains that demand in EMEA and Asia Pac remains strong, while in China, mgt has yet to discern any destocking in anticipation of weaker prices. Estimates, even in the worst case of 20% decline in ASP, revenue would still grow 11% yoy in FY13, while valuation stays on par with peers. Believes the unwarranted px correction has opened up a valuation gap, providing a strong re-entry opportunity.