OCBC Report 25 Nov 13

KEY IDEA Biosensors International Group: Sale by largest shareholder Summary: Shandong Weigao (SW), which is Biosensors International Group’s (BIG) largest shareholder, announced that it has agreed to dispose its entire 21.7% stake in BIG to CB Medical Holdings Limited (CBMH) at a sale price of S$1.05 per share. According to a SGX-net filing, CBMH is part of CITIC Private Equity Funds Management, a large private equity fund in China. As SW will incur a loss of ~CNY449.0m from this transaction, we believe it also partly reflects the lack of confidence in BIG’s prospects going forward. We do not foresee any impact from SW’s sale on the operations of BIG. While we do not rule out the possibility of a privatisation exercise on BIG by CBMH in the future, we continue to value the stock based on our expectations of its operational performance. Hence, maintain SELLand S$0.80 fair value estimate on BIG. (Wong Teck Ching Andy)

For more information on the above, visit www.ocbcresearch.comfor the detailed report.

NEWS HEADLINES - US stocks rose on Fri, with the S&P 500 index closing above 1,800 for the first time and extending gains into a seventh consecutive week. - Pacific Andes Resources reported FY13 net profit attributable to shareholders of HK$775.2m, up 23.5%. - China Fishery Group announced FY13 net profit attributable to shareholders of US$83.8m, representing a 7.3% growth. - Keppel Land has completed the divestment of its 51% shareholding in Jakarta Garden City. - Straits Trading Co is planning "Blackstone-like" funds as Asia's appetite for real estate investments increases. - Shares in Aussino Group plunged 50% to a low of 3.6 S cents, after SGX issued a delisting notification to the company and rejected its application for a time extension to meet certain listing requirements. - Guthrie GTS will be delisted from SGX at 9am today.