Cordlife

Cordlife: DBSV initiates at Unrated under its Equity Explorer series. Notes Cordlife is a market leader in cord blood banking, and provides its services in Singapore and HK. Sees key drivers in increasing penetration rate in both Spore and HK, and awareness of cord blood banking. Notes the bulk of Cordlife’s revenue is recurring, as >50% of its customers are on an annual payment scheme. Notes potential acquisitions in Indonesia, India and the Philippines could boost revenue. The stock currently trades at 14x FY13e P/E, but the house believes a target P/E of 16x based on a slight (<10%) discount to blended fwd P/E of its peers is reasonable, given its shorter trading history. Tips a fair value of $0.65. The stock is +1.9% at $0.545.