Wednesday, August 29, 2012
Biosensors/MicroPort: Biosensor’s peer Microport announced 1H12 results which was better then expected. Total rev at Rmb848.9m, +8% yoy, while net profit at Rmb2226.7m, +9.4% yoy. Rev from vascular device products rose by 3.3% yoy in 1H12, accounting for 94.7% of total rev. Of which drug eluting stents (DES) generated Rmb401.9m. TAA/AAA stent grafts brought in stable revenue stream in 1H12 compared to 1H11. Other stents generated strong growth of 54% yoy, mainly due to the rapid growth of intracranial stent system and other new consigned products. EP device and diabetic device segments have achieved revenue of Rmb 3.6m and Rmb 5.0m in 1H12, respectively, grown rapidly by 44%yoy and 216% yoy from 1H11. Suzhou Best, acquired in Nov 2011, have started to generate earnings for the co. The orthopaedic business revenue was Rmb16.9m revenue in 1H12 Profit margin improved on decreasing production cost and R&D expenses. Gross margin improved from 84.6% in 1H11 to 85.2% in 1H12, mainly due to the declining manufacturing costs of the drug-eluting stents, benefiting from the improvement in the production technology. UOB Kay Hian maintains Buy with HK$4.70. We note that positive results could stir some positive sentiment for SG Peer BioSensors, who operates in similar spheres.