Cordlife

Cordlife: Maybank KE initiates at Buy with Street high TP of $1.29, pegged at 23x FY14e P/E, in line with global peers . Notes with the completion of recent acquisitions of Philippines, Indonesia and India's oeprations last wk, Cordlife has built a far-reaching platform. Next, the group is expected to launch a wider range of maternal and infant healthcare pdts to better utilise its regional platform, which will drive economies of scale, margins and both top and bottom line growth. For instance, the group has expanded from just cord blood banking services in Singapore to umbilical cords - we see great potential to add more pdts and services that would be immediately earnigns accretive. At current prices, the market has not fully priced in Cordlife's favorable market position, strong regional presence, excellent pdt expansion opportunities, exceptional margins , high competitive advantages and sustainable earnings.