CORDLIFE GROUP

CORDLIFE GROUP released its FY2013 results on Monday night after market close. While revenue increased 14.6% year-on-year from S$30.275 million to S$34.70 million, full year net profit almost doubled to $13.5 million from $6.9 million. This increase in net profit was partly attributed to a S$2.7 million one-time disposal gain.

Excluding the one-off disposal gain, a one-time non-recurring costs of S$1.0 million in FY2013, and the IPO expenses of S$1.9 million, core net profits increased by 33.6% year-on-year.

Mr Jeremy Yee, Executive Director and Chief Executive Officer of Cordlife, said: “We continue to maintain a high, consistent level of gross profit margin of about 73%, given our leadership position as Singapore’s largest private cord blood bank.”

He added: “With the completion of the acquisition of cord blood and cord tissue banking businesses and assets in India, the Philippines, Hong Kong and Indonesia from Australia-listed Cordlife Limited, Cordlife is now well-positioned to capitalise on the tremendous growth opportunities in these economies driven by rising affluence of the middle-class. This is line with Cordlife’s strategy to expand its geographical reach in Asia.”

With rising affluence and increasing public awareness on cord blood banking, there is a growing market for Cordlife’s services. On top of that, the penetration rates in Asia are still relatively low and have much room for growth. Lastly, Cordlife has done well to tap on the enormous population base in Asia which includes China and India.

As at June 30, 2013, the Group maintained a robust financial position, with cash and cash equivalents of S$23.3 million and a low gearing of 0.08 times. A final dividend of 1.0 cent was declared. Together with the interim dividend of 1.0 cent, total dividends for the year was 2.0 cents.

At Monday’s closing price of S$1.28, Cordlife is trading at 22.22 times earnings and offers a dividend yield of 1.56%. In regard to the prospect of oversea cord blood & cord tissue banking business the future still looks promising.

I have unload excess Cordlife shares early this morning and I will accumulate again on price weakness.

Maybank KE Research on 27th April target Cordlife call for buy up to $1.47 (25.x FY14F)

CORDLIFE break new high at $1.315 with high buying interest.

CORDLIFE - "FLYER" Of The Week

Cordlife Group Limited steals this week’s limelight for the Singapore “Flyer” of the week. The share price of the company surged 22.1% this week from Friday’s close of $1.085. At the time of writing, the shares are being exchanged at $1.325.

Cordlife is a provider of stem cell banking from cord blood and umbilical cord. It currently owns and operates two stem cell banks with full processing and cryopreservation storage facilities in Singapore and Hong Kong. Furthermore, Cordlife has a strategic investment in the only cord blood bank operating in Guangzhou, China and has affiliates that operate in India, Indonesia and the Philippines.

The company released its Financial Year 2013 (FY2013) results on 26th August 2013. The revenue increased from $30.275 million in FY2012 to S$34.70 million in FY2013, an improvement of 14.6%. The net profit surged 94.7% from $6.9 million in FY2012 to $13.5 million this year.

A final dividend of 1.0 Singapore cent per share will be dished out to shareholders. Together with the interim dividend of 1.0 cent that was paid out for 2nd Quarter 2013, the total dividend for the year was 2.0 Singapore cents per share.

The company just went public in March 2012 at a listing price of $0.495. It is up 167.7% since then. Currently, it is trading at a PE of 22.8 and gives a dividend yield of 1.5%.

CORDLIFE TO ACQUIRE 19.92% INTEREST IN
MALAYSIA LISTED CORD BLOOD BANKING
SERVICE PROVIDER STEMLIFE BERHAD

- Acquisition of a 19.92% interest for an aggregate consideration of
RM29.58 million to expand overseas operations

- Transaction to enlarge the Group’s geographical footprint in Asia
and extend the Group’s reach of complementary services such as
umbilical cord tissue banking

- Diversifying to a multi-product healthcare company catering to
the mother and child segment

infopub.sgx.com/Apps?A=COW_CorporateAnno...GL_Press_Release.pdf

Rock, the stock has been a fabulous winner for you. But .....None of my friends want to buy Cordlife at this level. Why would you hold on at this level? How do you decide on whether the valuation is too rich ?