QT Vascular

QT Vascular: 1Q14 net loss widened 124% to US$9.2m while revenue rose 340% to US$2.8m mainly due to increased sales of Chocolate PTA Balloon Catheter. Bottom line was weighed a 34.8% increase in sales and marketing expenses to US$2.2m and a 327% increase in admin expenses to US$3.4m, of which US$2.1 was IPO related fees. Net finance costs ballooned 304.9% from US$733,000 to US$3m from FX loss and financial instruments. Management cites its optimistic view for higher Peripheral Artery Disease treatment demand, as Peripheral Artery diseases are more prevalent in the post-65 age groups, which has been growing across US, Europe, Japan and China. QT Vascular was operating with a net liability in 1Q14, and currently trades at 28.2x annualized 1Q14 P/Sales. Valuations are broadly unmeaningful as earnings are expected to come in FY15-16. The street 2 Buy ratings with a consensus TP of $0.575