Following up from previous call made on Monday, 1st July 2013. Cordlife has consolidated a few days below 1.10 before breaking above it this morning. Support would now be at 1.10 critically where we can see huge buyers stacked there currently. As long as 1.10 holds, still a bullish counter to hold in the short term. Recent high in May was 1.19 where we can possibly see it test this level again. Any break above 1.20 will be quite a positive signal for it to surge to find new consolidation phase probable 1.30 fast.
Stop loss at 1.085.
Maybank KE -5TH July 2013
Cordlife Group: Corporate Con call Feedback; Buy, TP $1.29
Ø Reiterate BUY. AsiaMedic/Cryoviva JV not a threat. Cordlife has an overwhelming 72% market share today and strong established channels. Even the largest player in India had second thoughts about entering Singapore due to Cordlife’s dominance.
Ø To deter competition, Cordlife will tie up exclusively with key hospitals and leverage upon its solid financial strength against Cryoviva, which is linked to the third largest player in India via a common shareholder.
Ø Cordlife will focus itself as a maternal and infant products player and leverage on its existing large customer base, strong connections with doctors and experienced sales team to launch more earnings-accretive products in the near future.
Ø Cordlife is also constantly looking for opportunities to expand into nearby countries, which should be sooner rather than later, possibly as early as this financial year. ”No earning dilution in the first year of expansion” is Cordlife’s key criteria in overseas venture.
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