Singapore “Flyer” of the Week: Biosensors International

A medical device company, Biosensors International Group Limited (SGX: B20), has stolen the Singapore “Flyer” of the Week accolade for gaining 9.9% this week, closing at $0.94 at the time of writing.

The company is involved in developing, manufacturing and marketing medical devices for interventional cardiology and critical care procedures like drug-eluting stents, bare metal stents and balloon dilatation catheters.

On 12th November 2013, the company released its second quarter of 2014 (2Q 2014) results. It saw a growth of 4% year-on-year to US$83.0 million, due to growth in product revenue offset by lower licensing revenue. However, the net profit plunged 60% year-on-year to US$11.3 million, mainly due to increases in operating expenses.

For the first half of 2014 (1H 2014), the company reported a revenue of US$159.7 million, a 4% decline from US$166.1 million in 1H 2013. This was mainly due to lower licensing and royalty revenue. The net profit was down 62% to US$23.4 million year-on-year.

As of 30th September 2013, the company had US$275 million of long-term borrowings. In the bank, it had US$512.3 million worth of cash.

Biosensors generated net cash from operations of US$20.2 million in 1H 2014 versus that of US$56.7 million in the previous year. This was a decline of 64%.

The market may have taken well to what Dr. Jack Wang, Chief Executive Officer of Biosensors, said about the future of his company. He mentioned, “Based on our recent approvals, we are working on multiple product launch plans to generate new revenues for the company. With the changing market conditions, management is implementing measures to enhance efficiency and improve profitability by restructuring its cost and operational compositions. We believe that the reorganization is necessary for us to better position ourselves to deliver our long-term goals.”

The company is trading at 11.2 times its historical earnings and has a dividend yield of 2.7%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.