MENU

Three Things To Like About Biosensors International

BiosensorsThere is a definite dearth of radical scientific companies listed on the Singapore Exchange. I can almost count the number of them on the fingers of one hand. Exactly why that is the case is a mystery, given the high standard of scientific education in our country.

And that, perhaps, is the first thing to like about Biosensors International (SGX: B20). It could provide investors who are looking for a bit of cutting-edge excitement a rare opportunity to pep up their investments. After all, there is a limit as to how many REITs and property developers that an investor can possibly pack into a balanced portfolio.

Biosensors International is engaged in the development of medical devices for cardiology procedures around the world. It is a pioneer in drug-eluting stents and catheter systems used in surgeries and intensive-care treatment.

The second thing to like about Biosensors International is its high Net Income Margin, which is the main contributor to its above-average Return on Equity (RoE).

Its Net Income Margin would suggest that the company is easily able to convert top-line sales into bottom-line profits at a high rate. Its RoE of 10.4% would also imply that investor are benefitting at a rate of $10.40 of profit for every $100 of equity invested in the business. That is higher than the market average.

Biosensors International could also provide a useful conduit to overseas markets, in particular China and Japan. The People’s Republic of China generates around a quarter of annual revenues, while Japan contributes about a fifth of total turnover.

The Motley Fool's purpose is to help the world invest, better. Click here now for your FREE subscription to Take Stock -- Singapore, The Motley Fool's free investing newsletter. Written by David Kuo, Take Stock -- Singapore tells you exactly what's happening in today's markets, and shows how you can GROW your wealth in the years ahead.

Like us on Facebook to keep up-to-date with our latest news and articles. The Motley Fool's purpose is to help the world invest, better.

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