Lausk22... ;)

Maybe your wish has come true to 'ganyibeijiu' again with your 'haopengyhou'...

See you in the "Entertainments" thread...

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KELIVE

R E S E A R C H

9

?

US$10.9m vs.US$26.3m a year ago. Bottomline buoyed by

exceptional item of US$14m which relates to the settlement of a

non-recurring legal action and impairment loss for financial assets.9MFY08 revenue +31% yoy to US$32.3m and lowered net loss to

Technical Comment:

?

we believe the gap that established on 22 Jan is likely to cover.

Recommend a buy on Biosensors with a target price of $0.89.Since it managed to close above the resistance at $0.85 on 15 Feb,

?

Biosensors and Venture suggested a possible trading opportunity. It

seems to be profitable for investors to sell Venture Manufacturing

and buy Biosensors.On top of our technical call on Biosensor, the spread chart of

Biosensors (BIG SP) - Beneficiary of R&D tax deduction

Stock Information

Market Cap (S$m) 880.0

52-week high ($) 1.12

52-week low ($) 0.59

Shares issued (m) 1053.9

6m avg. daily vol (m) 7.4

Free float (%) 64.6

Major Shareholders

Yoh-Chie Lu 21%

Financial Data

Biosensor

Recommend a buy on Biosensors

Year End Mar 2005 2006 2007

Sales (US$m) 71.0 37.9 34.4

Pretax Profit (US$m) 29.1 (21.0) (35.1)

Net profit (US$m) 20.0 (22.5) (36.3)

EPS (US cts) 2.9 (2.6) (4.0)

EPS growth 45.0 n.m n.m

P/B (x) 10.9 6.9 8.8

ppIPppaNGAPORE ? HONG KONG ? INDONESIA ? LONDON ? MALAYSIA ? NEW YORK ? PHILIPPINES ? TAIWAN ? THAILAND ? VIETNAM | www.kelive.com

KELIVE

R E S E A R C H

8

Biosensors (BIG SP) - Beneficiary of R&D tax deduction

Singapore Budget 2008 - R&D

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development (R&D) done in Singapore to jump from 100% to 150%

and made available from 2009 to 2013.Tax deduction for expenditure incurred on research and

?

2009 to 2013, amounting to 50% of the first S$300,000 of

chargeable income for each year.R&D Tax Allowance to grant companies R&D tax allowance from

?

Holdings, STATS ChipPac and Venture, Bio-Technological

companies such as Biosensors may also benefit.Besides Technology firms such as CSM, Creative, Ellipsiz, ASTI

?

devices such as the BioMatrix drug -eluting stent system (DES)

which received the Conformite Europeenne (CE) Mark of approval

on 18 January 2008.Biosensors develops, manufactures and commercializes medical

?

which is expected to be launched in April 2008 (1QFY09).Significant revenue contribution will derived from BioMatrix in 2H09

?

incurring an operating loss for 1H09 but a break-even position for

2H09.Management guided revenue range of US$100-US$150m for FY09,

Companies with R&D expenses

Spread Chart of Biosensor and Venture Manufacturing

Ranking Technology Sector R&D - % of sales R&D expenses ($m) Sales ($m)

1* Chartered Semiconductor Manufacturing 11.8% 159. 8 1 ,355.5

2* Creative 7.0% 6 3.6 9 14.9

3 Ellipsiz 2.9% 5 .8 2 00.6

4 ASTI Holdings 2.2% 9 .0 4 16.4

5* STATS ChipPAC 1.9% 3 0.4 1 ,616.9

6 Venture 0.8% 2 9.6 3 ,872.8

Bio-Tech Sector R&D - % of sales R&D expenses (US$m) Sales (US$m)

Biosensors 72.4% 24.9 34.4

LMA 1.2% 1.2 99.6

Source: Company data, KELive