Biosensors

Biosensors: Philip has an unrated note. Notes, following the acquisition JWMS, one of the top three DES players in China, Philip believes that Biosensors is well positioned to benefit from the growing DES market in the country. Highlights the successful launch of BioMatrix in 2008 led to strong growth in the IVP segment over the past few years. Going forward, expects earnings upside to come from growth in new markets, as the company achieves regulatory approval for the use of its products in other jurisdictions. Adds, the renewed licensing agreement with Terumo would continue to drive income streams from the sale of Nobori by Terumo. With a strong balance sheet, also expects Biosensors to continue its growth trajectory by acquiring companies with complementary technology. Notes, Biosensors trades at reasonable earnings multiples of 13.4X and 12.0X FY13/14E based on consensus forecasts. The current P/E multiple of the stock is marginally below that of a selected group of peers.