Biosensors

Biosensors: CIMB lowers target price to $1.65 from $1.73 and trims FY14 earnings by 7% on lower margin assumptions. House says FY13 revenue grew 15% to US$336m due to a 35% rise in interventional cardiology product sales on organic growth, but was offset by a 29% fall in licensing revenue amid competition in Japan. The firm proposes a dividend of US2¢ or a 31% payout ratio. Management tips 15% revenue growth for FY14 boosted by current products and contribution from the commercialization of 4 new products and the newly acquired Spectrum Dynamics business. CIMB believes that while FY14 consensus estimates will be adjusted down, BIG's distinctively cheaper valuation and mid-term picture auger well for the group and FY15 should see the initial uplift from the commercialisation of new products. The addition of Spectrum Dynamics will further boost earnings.