Venue: Regent Singapore, Cuscaden Road
Time & date: 10 am, July 26
DESPITE A good turnout of shareholders at the AGM, there were just a handful of questions.
As expected, one of these had to with the absence of dividends. Biosensors, since its listing on the SGX in 2005, has never paid a dividend.
Well, Biosensors International (market cap: S$2.1 billion) isn't planning to pay dividends to shareholders - until it reaches a mature phase in its evolution.
The executive chairman and founder, Yoh-Chie Lu, said: "Our company is in the medical devices sector, which is rapidly growing and the competition is very tough.
"Our goal in order to enhance the value for every shareholder is not to, at this point, declare dividends but rather to continue our growth path to achieve a higher revenue and profit. So at this point, we have no exact and immediate plan to declare dividends."
Shareholder: "When can we expect dividends then?"
Mr Lu: "Once the company has reached maturity and we feel we can confidently say we are in a very strong position to not only grow the company but also share some of the profits with shareholders -- we will definitely do that. We will continue to evaluate and review those things as we go."
Biosensors International develops, manufactures and markets innovative medical devices for interventional cardiology and critical care procedures.
The interventional cardiology division accounted for 93% of the total FY12 product revenue of the group.
This division develops, manufactures and commercializes drug-eluting stents, bare metal stents and angioplasty catheters.
Interventional cardiology contributed 67% of FY12 group revenue. Licensing revenue chipped in another 27.6%.
Biosensors achieved group revenue growth of 87% to US$292.1 million in FY12 ended March 2012.
FY12 net profit excluding exceptional items increased 92% year-on-year to US$101 million.
Operating cash flow was US$81.0 million, a 192% increase from FY11.
The results reflect the consolidation of JW Medical Systems Ltd. in early October 2011 after Biosensors completed its acquisition of the remaining 50% equity interest in JWMS.
M&A action to come
At a special general meeting immediately after the AGM, shareholders voted for a doubling of Biosensors' authorised share capital to US$320,000 comprising 4.8 billion shares.
A shareholder asked if this signalled an intent to do M&A.
It is indeed one of the reasons, replied Mr Lu. "The use of company shares as a currency is not uncommon and we don't take it lightly."
Shareholder: "It's inherently dilutive in nature. I notice the operationg profit per share fell after the JWMS acquisition."
Mr Lu replied that there are shareholders who appreciate the longer-term prospects of Biosensors instead of being satisfied with its current level.
He added that the 1QFY13 results released the evening before showed the fruits of the JWMS acquisition.
> Total revenue hit US$86.3 million, representing 51% year-on-year growth.
> Net profit excluding exceptional items grew 17% year-on-year to US$28.3 million.
> Operating cash flow of US$36.3 million, a more than 10-fold increase year-on-year.
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