Cordlife

Cordlife: yday announced the proposed acquisition of 19.9% stake in Stemlife Bhd for RM29.6m, to be satisfied via the issuance of 8m Cordlife shares and RM2.85m cash. Voyage Research sees several benefits in this acquisition. First, it will enable Cordlife to expand its foot print into Msia and potentially Thailand. There may be an opportunity for collaboration btwn Cordlife and Stemlife, where they can cross sell cord blood banking services in both nations and offer different tier of services. Lastly, Stemlife will be able to improve its gross margin as it can now ride on Cordlife for bulk purchasing and adopt more effective and advanced systems. The house believes more of the growth prospects will gradually be realized over the years. Maintains its Invest rating with higher TP of $1.60.