SCCM positive on Cordlife as it posts FY2020 results 'in line' with expectations

Soochow CSSD Capital Markets (SCCM) analyst Simeon Ang has maintained his “buy” call on Cordlife Group and raised his target price to 52 cents for the stock after its FY2020 results came in line with expectations. 

Ang noted that Cordlife’s FY2020 Profit After Tax and Minority Interests (PATMI) came in flat at $6.5million, 1.2% higher y-o-y. This is due to higher operating margins, rising 1.6% y-o-y to 13.8% and lower tax expenses of almost 40% y-o-y. 

However, revenue slid 17.8% y-o-y to $50.6 million on lower cord blood banking service demand in light of Covid-19, although diagnostics jumped 70% YoY. 

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