Biosensors

Biosensors: OCBC maintains Buy with $1.60 TP. Note that regional peers have faced headwinds in the Chinese drug-eluting stent market, as highlighted in their recent results announcement. House believe that these factors, such as a slowdown in growth of PCI surgeries, would also have an adverse impact on BIG. However, expect BIG to continue its market share gains in other key markets such as the EMEA region. BIG is also stepping up its collaboration with its licensee Terumo Corp to address the recent decline in licensing revenue from Japan. Nevertheless, believe that a further depreciation of the Japanese Yen due to stimulus measures by the Bank of Japan could exacerbate this problem. House thus trim our FY14F revenue and core net profit forecasts by 0.6% and 1.6%, respectively. However, maintain BUY rating although FCFE-derived fair value estimate declines marginally from $1.63 to $1.60.