Cordlife Data Summary

+ Cord blood banking industry dominated by few players.

+ Projected strong penetration rates

+ Technological and clinical leadership

• Stable recurring cash flow, with payment structures that contractually bind customers to pay annually till the child’s maturity age at 18 or 21. Strong earnings visibility is expected if the group successfully enlarges its subscriber base from the current 35,000 to 650,000 cord blood units via expansion.

+ One of few profitable blood banks. Post IPO, Cordlife will trade at 13.6x FY11 P/E and 1.7x P/B, with its above-average valuations justified by a superior ROE and scarcity premium as a healthcare play. Cordlife has committed to distribute up to 25% of its FY11 and FY12 net earnings as dividends, which translates to a dividend yield of 2.0%.could see Cordlife as a main beneficiary of medical advancements and scientific breakthroughs given the expanding clinical use of cord blood transplants in the treatment of sickle cell anaemia, leukaemia, Parkinson’s disease and certain cancers.augur well for the company, on the back of declining birth rates, increasing affluence and awareness of cord banking services in Asia. Cord storage volume is expected to grow at a CAGR of 9% in Singapore, 10% in HK and 22% in China over 2011-2015.Industry studies show that the top 3 players in most countries have a market share of 80% or more.  Cordlife's leadership position in Singapore and HK cements its first mover advantage and competitive edge in a growing industry with few participants and low liability risk (capped at US$25,000 / unit).