Biosensors International Group’s (BIG) 4QFY13 revenue growth of 0.7% YoY to US$88.8m closely matched our US$88.5m forecast. PATMI excluding exceptional items came in at US$29.8m, a 4.1% increase YoY and exceeded our projection by 6.5%, thanks to an income tax benefit of US$5.9m due largely to a tax refund received. For FY13, revenue and core PATMI jumped 15.1% and 10.5% to US$336.2m and US$111.6m, respectively. Surprisingly, BIG declared its first ever dividend since listing. Declared DPS of US$0.02 translates into a yield of ~2.1%. Looking ahead, we expect BIG to maintain its technological superiority with its new product launches. Management has guided for revenue growth of ~15% for FY14, in line with our expectations. We leave our estimates unchanged, and maintain our fair value estimate of S$1.60. Reiterate BUY as BIG’s recent share price weakness represents a good entry point, in our view.
4QFY13 core PATMI above expectations
Biosensors International Group (BIG) reported a mild 4QFY13 revenue increase of 0.7% YoY to US$88.8m, as strong product sales growth (+16.9%) was offset by a sharp 45.7% dip in licensing and royalties revenue. This closely matched our US$88.5m forecast. PATMI excluding exceptional items came in at US$29.8m, a 4.1% increase YoY and exceeded our forecast by 6.5%, thanks to an income tax benefit of US$5.9m due largely to a tax refund received. For FY13, revenue and core PATMI jumped 15.1% and 10.5% to US$336.2m and US$111.6m, respectively. The former came in at the low end of management’s 15-20% revenue growth guidance for FY13.
Positive dividend surprise, first ever declared since listing
Surprisingly, BIG declared its first ever dividend since its IPO in May 2005. We believe this decision was supported by its huge net cash hoard of US$336.9m (as at end FY13). Declared DPS of US$0.02 translates into a payout ratio of 29.9% and yield of ~2.1%.
Stepping up the technological ladder
Following its recent CE Mark approval for its next-generation BioFreedom™ drug-coated stent (full commercial launch expected in 2014), BIG announced last week (20 May) that it has also obtained the CE Mark approval for its BioMatrix NeoFlex™, the latest addition to its BioMatrix family of drug-eluting stents. We believe this demonstrates BIG’s ability to maintain its technological superiority, as the BioMatrix NeoFlex™ features a new advanced stent delivery system supported by positive clinical data. This product will be sold immediately in its key markets.
Revenue growth guidance of ~15% for FY14; reiterate BUY
BIG has guided for revenue growth of ~15% for FY14, which is within our expectations as our prior forecast implies topline growth of 14.1%. We leave our estimates unchanged, and maintain our fair value estimate of S$1.60. In our opinion, BIG’s recent share price weakness represents a good entry point, with the stock trading at an attractive 13.5x FY14F PER, coupled with management’s decision to reward shareholders with their first-ever dividends. Reiterate BUY.
Biosensors International Group (BIG) reported a mild 4QFY13 revenue increase of 0.7% YoY to US$88.8m, as strong product sales growth (+16.9%) was offset by a sharp 45.7% dip in licensing and royalties revenue. This closely matched our US$88.5m forecast. PATMI excluding exceptional items came in at US$29.8m, a 4.1% increase YoY and exceeded our forecast by 6.5%, thanks to an income tax benefit of US$5.9m due largely to a tax refund received. For FY13, revenue and core PATMI jumped 15.1% and 10.5% to US$336.2m and US$111.6m, respectively. The former came in at the low end of management’s 15-20% revenue growth guidance for FY13.
Positive dividend surprise, first ever declared since listing
Surprisingly, BIG declared its first ever dividend since its IPO in May 2005. We believe this decision was supported by its huge net cash hoard of US$336.9m (as at end FY13). Declared DPS of US$0.02 translates into a payout ratio of 29.9% and yield of ~2.1%.
Stepping up the technological ladder
Following its recent CE Mark approval for its next-generation BioFreedom™ drug-coated stent (full commercial launch expected in 2014), BIG announced last week (20 May) that it has also obtained the CE Mark approval for its BioMatrix NeoFlex™, the latest addition to its BioMatrix family of drug-eluting stents. We believe this demonstrates BIG’s ability to maintain its technological superiority, as the BioMatrix NeoFlex™ features a new advanced stent delivery system supported by positive clinical data. This product will be sold immediately in its key markets.
Revenue growth guidance of ~15% for FY14; reiterate BUY
BIG has guided for revenue growth of ~15% for FY14, which is within our expectations as our prior forecast implies topline growth of 14.1%. We leave our estimates unchanged, and maintain our fair value estimate of S$1.60. In our opinion, BIG’s recent share price weakness represents a good entry point, with the stock trading at an attractive 13.5x FY14F PER, coupled with management’s decision to reward shareholders with their first-ever dividends. Reiterate BUY.
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