Silverlake and CSE are significant players in software and system integration. Silverlake has a substantial market share in core banking software. OSIM and Super have well-known consumer staple and discretionary brands. YuuZoo is an interesting e-commerce company with a social messaging component.
|
Cordlife aims to increase its cord blood storage market share and penetration rate, especially in India. Management has identified India as one of its fastest-growing markets. New sign-ups jumped 3x in 1Q6/15 after more promotions. Revenue will be recognised in 6-9 months’ time, when clients deliver their babies. In Indonesia and the Philippines, Cordlife plans to expand into more cities. Moreover, it wants to roll out new and complementary products such as MetaScreen for umbilical cord tissue storage across the region. It could do this by leveraging its cord blood distribution network. Cordlife is able to command premium selling prices through its: § Highly recognised AABB accreditation. It was the first Asian cord blood bank to be accredited in 2005. § Listing status with transparent financials § Transplant track record of 16 cases § Position as the only cord blood bank with a strong presence in Asia. Management highlighted that CBs were the cheapest way to raise its stake in CCBC, China’s largest cord blood storage provider with monopoly licences in four regions. Without the CBs, its stake of 7.3m shares would be diluted from 10% to 6% upon full conversion of CCBC’s CBs. The CBs it has acquired will raise its stake to 14% on a diluted basis. Aside from benefitting from coupon payments and potential share-price appreciation, its strategic stake will allow Cordlife to harness CCBC’s platform for marketing its products. For instance, Cordlife formed a strategic alliance with CCBC in Mar 2014 to offer its cord tissue storage in China. Clients were impressed with the company’s expansion through complementary products and strong competitive advantages. Management also managed to assuage concerns over its acquisition of CCBC’s CBs. |
Full Maybank report here.