BioSensors

BioSensors: Announced strong set of 1Q13 results, which was in-line with estimates. Rev at US$86.3m, +51% YOY and -2.2% qoq, while net profit excluding exceptional at US$28.3m, +17% YOY and flat qoq. Gross Margins at 81% was a 5% improvement QOQ and 7% YOY due to reductions in manufacturing cost, favorable geographical and product mix. The improved performance was due to the full qtr consolidation of the results of JW Medical System in 1Q13, higher product revenue, licensing revenue and gain on fair value adjustments for the derivatives. Going forward, grp maintains its full-yr financial guidance and anticipates total rev to grow by 20% to 30% over FY12, driven by continued strong DES rev growth as well as modest licensing and royalty rev increase. Grp however anticipates that the higher rev will be partially offset by increased expenses required to support rev growth and development of future products. On the M&A front, grp will continue to explore various opportunities. At current price, grp trades at an annualized 12.6x FY13E P/E. Ratings as follow: CIMB maintains Outperform with $1.82 TP Nomura maintains Buy with $1.84 TP.