Cordlife

Cordlife: Maybank KE highlights that Cordlife has expanded from just 2 markets to 5 last year (Philippines, India, Indonesia, Malaysia and Thailand) with plans to extend its product range by launching new and existing products. The move is to transform itself from being a cord blood bank into a multi-product healthcare products distributor, targeting the mother and child segment. Meanwhile, Cordlife will also deepen its reach into China via the alliance with China Cord blood Corporation to provide cord tissue storage services that will give it a steady stream of royalty income. Maybank KE’s estimates that the tie up will lift FY15e EPS by 14% conservatively, but this is only the tip of the iceberg given more mutually beneficial ventures for the China market is expected in the future. Maybank KE reiterates a Buy call on Cordlife with a slightly raised TP of $1.43 from $1.42, but highlights TP could rise to $1.60 on more material developments with the China Cord Blood Corp tie-up.