Cordlife

Cordlife: (S$1.235) Rising overheads set to continue into FY17
- FY16 net profit tumbled 60% to $13m due to increased overheads and lower fair value gains arising from China Cord Blood Corp (CCBC).
- Revenue edged up 3.5%, but gross margin was compressed to 66.2% (-3.3ppt) due to lower profitability at StemLife.
- No dividends has been declared this year (FY15: 2¢), despite the group's net cash position (including short-term investments) of $59.8m ($0.23/share), as Cordlife focuses on expanding its geographical footprint.
- Overheads are expected to maintain its upward trajectory.
- Cordlife is valued at a relatively pricey trailing P/E of 25.2x, compared to its 7-year historical average of 14.1x.