Biosensors

Biosensors: Nomura issued a 3Q results preview, noting that net profit excl. exceptionals are expected to be US$32m, 20% y/y. Headline reported net profit could be 89% lower due to the exceptional gain last year from the restructuring of JWMS. Japan's revenue are expected to be 34% lower due to ASP cuts in Japan and competition from new product introductions. However profit growth should be cushioned by sharply lower sales and marketing expenses when compared to the previous period. Contribution from China should also hold steady since ASP cuts have not yet been implemented. Nomura maintains BUY on Biosensors, with a TP of $1.80. Company is estimated to report its 3Q results on 7 Feb 2013.