Biosensors International’s profits to soar 20%
But its Japan licensing revenue will be lacklustre.
Biosensors is set to report its third quarter results next week. Nomura forecasts a net profit excluding exceptional of US$32m, growth of 20% y-y. It also adds, headline reported net profit could be 89% lower due to the exceptional gain last year from the restructuring of JWMS.
Here’s more:
We expect licensing revenues to be 34% lower due to ASP cuts in Japan and competition from new product introductions. However profit growth should be cushioned by sharply lower sales and marketing expenses when compared to the previous period. Contribution from China should also hold steady since ASP cuts have not yet been implemented.
Biosensors’ share price has recently rebounded following the receipt of the CE Mark for BioFreedom and plans by the group to launch the product in 2014. We maintain Buy with a price target of S$1.80.