Biosensors

Biosensors: $300m recently raised through a massively over-subscribed bond sale bring Group's available cash disposal up to US$570m to look for acquisitions. Amidst rolling out its next-generation heart stent, Company also manufactures cricital care products such as pressure monitoring devices and blood sampling kits. Group intends to broaden its business to achieve greater growth, as they stated the limitation with its concentration on one product. Cuurent talks held with several companies are those with leading technologies that are already being successfully marketed, and not companies with just a sales channel. Adding that the firms that the Group are currently talking to are largely focused on only one geographical market or just a few, noting that a potential future organic growth should be available. DBSV noted that the 4.875% annual fixed interest rate should be deployed meaningfully and quickly, as the mgmt would not be contented on sitting on the funding costs for too long. Most houses remain bullish on Biosensors despite its recent lowering on revenue guidance and expected cost increases. Company trading at 16.6x P/E, and 1.5x P/B