Cochlear Limited (ASX: COH)

COH Details

Increase of market share in Americas and in EMEA - Cochlear Limited (ASX: COH) is the global leader in implantable hearing devices that transform the way people understand and treat hearing loss. It innovates and brings to market a range of implantable hearing solutions to deliver a lifetime of hearing outcomes. R&D investment strengthens its market-leading technology position and the group invests around 12 per cent of its revenue in R&D. Its key priorities are building awareness and access for adults & seniors. It builds on the clinical evidence that demonstrates the effectiveness of its products, particularly for seniors. Cochlear implants have been established as the standard of care for new born across many developed markets.In terms of financial performance, the Group delivered a reported net profit of $110.8 million for 1HFY18, which was down by 1 per cent as compared to same period in prior year, while it was up 1% in constant currency.


EMEA Revenue Growth (Source: Company Reports)

Meanwhile, Blackrock Group Limited changed its substantial holding from 7.16 per cent of the voting power to 6.16 per cent since 25 May 2018. As people age, they generally tend to face hearing challenge, and this sets up a target zone for the group. It was worth noting that in the first-half of FY 2018, approximately 84 per cent of its $639.6 million revenue was generated in the Americas and EMEA regions. Thus, favourable currency movements could give its earnings a meaningful boost and on the same hand expectations rise from the Company. On the other hand, the share price was up by 35.8 per cent in one year and by 3.65 per cent on 1 June 2018. However, the price was seen to plunge by 1.4% on June 04, 2018. Looking at the trading levels and catalysts already factored in the price, the stock looks “Expensive” at the current market price of $200.49.
 

COH Daily Chart (Source: Thomson Reuters)
 

CSL Limited (ASX: CSL)

CSL Details

Lifting of Profit Guidance: CSL is Australia’s largest healthcare business, and it has been an exceptional performer for shareholders over the past decade. The Company issued 2,000 fully paid ordinary shares at an issue price of $29.34. The Group now expects net profit after tax for FY18 to be in the range of around $1,680 million to $1,710 million USD at constant currency (against earlier provided guidance of $1,550 million to $1,600 million). It has a strong track record of profits and dividend growth, and invests a huge amount of its operational cashflow into R&D so that it can commercialise better and innovative products for future generation. The stock is trading at PE Ratio of 41.8.Further, the management reported an improved positive outlook for the full year at the back of high demand of its product mix portfolio, particularly immunoglobulin products such as Idelvion and Haegarda across the global market.


1HFY18 Revenue Contribution (Source: Company Reports)
 
The stock has been rising up by 44 per cent in last one year and rallied about 362.20 per cent in last 10 years. It now looks “Expensive” at the current market price of $188.56.
 

CSL Daily Chart (Source: Thomson Reuters)
 

Mesoblast Limited (ASX: MSB)

MSB Details

An increase in the net loss for Q3FY18 – Mesoblast is committed to bringing to market its disruptive cellular medicines to treat serious and life-threatening illness. The Company released mixed financial results for the nine months ended March 31, 2018 and provided operational highlights for the third quarter ended March 31, 2018. The Company reported an increase of US$11.4 million (116 per cent) in the loss after income tax for the third quarter of FY2018, compared with the third quarter of FY2017 while nine-month loss narrowed by 71%. Revenues were US$1.1 million in the third quarter of FY2018 compared with US$0.9 million in the third quarter of FY2017, an increase of US$0.2 million (19 per cent). The net loss attributable to ordinary shareholders was US$21.1 million, or 4.47 cents loss per share, for the third quarter of FY2018, compared with US$9.8 million, or 2.43 cents loss per share, for the third quarter of FY2017. Moreover, Management and Administration expenses were US$6.0 million for the third quarter of FY2018, compared with US$5.5 million for the third quarter of FY2017, an increase of US$0.5 million (9 per cent) primarily due to increased corporate activities. During the quarter, Mesoblast established a non-dilutive, four-year credit facility with Hercules Capital for up to US$75 million, with US$35.0 million drawn at closing.


Clinical Pipeline (Source: Company Reports)
 
The stock was down 25 per cent in last three months and we recommend to “Hold” the stock at the current market price of $1.49 by looking at the clinical pipeline and milestones achieved.


MSB Daily Chart (Source: Thomson Reuters)

 
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