Biosensor Recession proof -heartstent biz

DBS Vickers this morning :

What a bargain!

• Share price correction is bargain hunting opportunity; Share price decline has factored in
potential risks from China price tender and ASP drop in stents

• Management’s 20-30% revenue growth guidance is still very visible

• At just 12x PE, bargain for 38% upside TP S$1.57.

I don't understand why the market is not pulling up Biosensors stock price (now $1.14).

Biosensors had a record net profit of US$101m for FY12 ended March 2012.

The record profit would have been higher if not for one-offs totaling US$20m,  such as unrealized forex loss, inventory adjustments and a large marketing expense incurred in the 3Q.

For the current FY, Management has guided for 20% to 30% sales growth -- which is conservative because it assumes no new product launches, etc.

Biosensors is the most profitable medical company on SGX, when you consider that its net profit margin is 35% or so. Gross margin is 80%. Not surprising considering it has patented and innovative products -- compared to being a healthcare or dental group such as Healthway Medical & Q&M Dental.

I could not resist buying Biosensors at $1.15. Would not sell until it recovers to $1.50 or thereabouts. What do you thinK?

I fully agree Biosensers future looks bright. It needs the catalyst of the 1Q 2013 to steer interest.
The other issue is there is no incentive to hold Biosensers shares as there is no div. pay out.
 

Thank you 'Good Heart' for highlighting Biosensors at 1.14. It's gone up to $1.22 now and I am laughing all the way to the bank

Still considered cheap now,,