Cordlife has cleared the 1.20 Critical resistance level today on High Volume today. Currently at an all time high at this level. Was trading near the 1.20 resistance level in May and July 2013 separately but failed to cross above each time and consolidated downwards each time. This break could suggest a new phase of uptrend to 1.30 then 1.50 possibly. Would be good to accumulate near 1.20 support level if it does dipped slightly. As long as 1.20 holds as a new support level, we are bullish on this counter. A break above 1.30 can open the way to 1.50.
Stop loss at 1.18.
Maybank KE – 5 AUG 2013
Cordlife Group: Rumoured relaxation of China’s one child policy; Buy TP $1.29
- According to a Chinese press report, there is a strong rumor that China may relax its one child policy by the end of 2013 and fully implement the policy in 2015. China’s baby stocks have reacted positively on this.
- If realized, this will be great news for Cordlife as it holds 10% stake in China Cord Blood Corp, the largest cord blood player in China with operations in 4 provinces which in aggregate account for 73% of China’s newborn population.
- To sum up, Cordlife is in a good stead to reap the benefits of the high potential China cord blood market. We maintain our positive view on the stock and reiterate BUY with TP of SGD1.29 (23x FY14F PER).
- According to a Chinese press report, there is a strong rumor that China may relax its one child policy by the end of 2013 and fully implement the policy in 2015. China’s baby stocks have reacted positively on this.
- If realized, this will be great news for Cordlife as it holds 10% stake in China Cord Blood Corp, the largest cord blood player in China with operations in 4 provinces which in aggregate account for 73% of China’s newborn population.
- To sum up, Cordlife is in a good stead to reap the benefits of the high potential China cord blood market. We maintain our positive view on the stock and reiterate BUY with TP of SGD1.29 (23x FY14F PER).
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