Biosensors

Biosensors: Deutsche initiates with Buy, TP$1.50. Highlight that co has innovative product offering, ability to capture robust volume growth in emerging markets and EU, and potential diversification through acquisition. The BioMatrix Flex entry into China is also considered as a significant near/mid-term catalyst. Co is well poised to capture volume growth in the ex-US global stent mkt, through product life cycle mgmt and mkt share gains. Expects launch of BioFreedom (its biodegradeable stent platform) to offer significant scope for mkt share expansion. Mgmt has also indicated that co is actively looking for acquisition targets with differentiation in tech. Co is priced by applying 15x P/E to FY13E EPS in line with HK-listed healthcare names. Biosensors trades at 12.3x fwd P/E according to Bloomberg estimates.