tag:blogger.com,1999:blog-8488305785096287326.post6618878756774710624..comments2024-03-28T15:28:28.391+08:00Comments on A Young Investor's Diary: Cordlife Group - Potential Growing Recurring Income?sgyounginvestorhttp://www.blogger.com/profile/02036598665471392859noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-8488305785096287326.post-75268793382495798702014-12-05T14:13:15.693+08:002014-12-05T14:13:15.693+08:00Agreed with the sophisticated analysis. Being a ba...Agreed with the sophisticated analysis. Being a banker I understand that all that impacts valuation of any kind of "repository", be it financial or cord blood, is the associated reputation risk. Now lately given the desperation of upselling the CBB services Cordlife has started moving on a risk path of association with distributors of services like newborn screening from providers who have been rated illegal in court of law. While taking a sales pitch from a CBB i came to know about this fact. Can you do a thorough search and also factor-in such subjective details in your analysis. I am a great fan of technical analysis but give a very high weight to such subjective factors which make sometimes company go bust specially in the field of medicine.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8488305785096287326.post-51612711206066103882013-05-23T07:41:25.461+08:002013-05-23T07:41:25.461+08:00No too sure.
3 Q result was up due to lesser admi...No too sure.<br /><br />3 Q result was up due to lesser administrative expense incurred for IPO and 9M benefitted from a disposal gain.<br /><br />However, ppl thought that the coming acquisition is a good news. Apparently,the company never reveal the profitability of these to be acquired subsidiary. Shareholder should question the management on the profitability or is it merely to offload burden from CBBsgyounginvestorhttps://www.blogger.com/profile/02036598665471392859noreply@blogger.comtag:blogger.com,1999:blog-8488305785096287326.post-63389280594657288552013-05-21T17:00:01.125+08:002013-05-21T17:00:01.125+08:00Can anyone shed some light as to why Cordlife has ...Can anyone shed some light as to why Cordlife has been going up lately for the fact that the fundamental has not changed much? Thanks in advance.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8488305785096287326.post-71631411318305413092013-05-02T08:27:31.560+08:002013-05-02T08:27:31.560+08:00As stated earlier, a maximum of 88% of revenue wil...As stated earlier, a maximum of 88% of revenue will be recognised in the first year and the rest will be spread over the contract. Another problem is that Hong Kong and SIngapore might have different price charged.sgyounginvestorhttps://www.blogger.com/profile/02036598665471392859noreply@blogger.comtag:blogger.com,1999:blog-8488305785096287326.post-63460366293548609902013-04-29T17:41:14.155+08:002013-04-29T17:41:14.155+08:00Revenue recognition is not accurate if u compare w...Revenue recognition is not accurate if u compare with the number of deliveries they provide.. For instance, FY2012 deliveries are 7,200 but revenue is only 28.8 million. If you work(6200*88%*7,200), u get 39.2 million. But their figure is only 28.8 million. I wonder wat's the actual rev they recognise for each delivery.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8488305785096287326.post-12283788457444338352012-05-26T21:06:36.429+08:002012-05-26T21:06:36.429+08:00According to the prospectus, 88% of the cost is in...According to the prospectus, 88% of the cost is incurred at the initial stage ($5456). Since cost is incurred, the revenue will be recognised at 88% of $6200 which is 5456.<br /><br />If they opt for the payment option of $4200 for the first 10 years, they will incur receivable of $1256 since they recognised $5456 in revenue but only collected $4200.<br /><br />If they opt for the payment option of $1950 for the first year as deposit, they will incur receivable of $3500 since they recognised $5456 in revenue but only collected $1950. <br /><br />Revenue is recognised when cost is incurred under standard accounting practicesgyounginvestorhttps://www.blogger.com/profile/02036598665471392859noreply@blogger.comtag:blogger.com,1999:blog-8488305785096287326.post-34946095909224392492012-05-26T17:48:03.743+08:002012-05-26T17:48:03.743+08:00Can you explain their business model again? How di...Can you explain their business model again? How did u get the receievables to 1200 or 1500?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8488305785096287326.post-47938832755949451452012-04-08T08:46:42.176+08:002012-04-08T08:46:42.176+08:00Aggressive marketing will definitely means cash wi...Aggressive marketing will definitely means cash will be burnt. However, this is necessary for a business with no sustainable competitive advantage.<br /><br />Cordlife needs not refund the remainder of the unutilized storage fee but they have to do the retrieval for free. As for %utilization, the first one was only in 2009. I believed the rate to be very very low (less than 10 so far) and this is instead something that's negative. It simply shows that the likelihood of using it is very low and should that happen you have 80% chance of getting one from the public bank.<br /><br />88% are recognised based on cost structure which means a majority of the cost goes to processing and freezing of the cord blood. Storage probably takes up little fee since you just put them into the freezer and pay for the electricity.sgyounginvestorhttps://www.blogger.com/profile/02036598665471392859noreply@blogger.comtag:blogger.com,1999:blog-8488305785096287326.post-12362824757842693032012-04-07T23:50:54.322+08:002012-04-07T23:50:54.322+08:00Hi thanks for the detailed analysis supported by n...Hi thanks for the detailed analysis supported by numbers. Always a pleasure to read good analysis. :)<br /><br />Two points I wish to bring up. One is that aggressive marketing needs to be spent to increase penetration rate and raise awareness of the benefits of cord blood, and this basically means cash burn with no guaranteed cash inflow back (depends on the country's jurisdiction and laws and also people's attitudes).<br /><br />Another is that once the cord blood is used, I believe it's a one-off in that it cannot be used a 2nd time. This means that Cordlife has to refund the remainder of the unutilized storage fees which it originally collected upfront. It would be good to compare how many % of their clients have historically utilized the cord blood, out of say a customer base of 20,000. This could be a potential contingent liability, akin to warranty claims, and will be a cash drain.<br /><br />Also, kind of curious as to why they recognize 88% of the payment upfront and the rest over the storage life. Shouldn't it be amount paid divided by 21 years and deferred revenue reversed out equally over the 21 years? Perhaps I missed something here.<br /><br />Thanks!Musicwhizhttps://www.blogger.com/profile/10950754156386935254noreply@blogger.comtag:blogger.com,1999:blog-8488305785096287326.post-3745124366499335782012-04-07T09:01:42.944+08:002012-04-07T09:01:42.944+08:00they are pretty lucky in Singapore due to regulati...they are pretty lucky in Singapore due to regulations. In many other countries like Hong Kong, there's no regulation on who is allowed to start a cord blood bank. The best way will be a really aggressive marketing campaign such that the moment people think of cord blood banking they will only think of Cordlife Group. Alternatively, it will be to tie up with hospitals, especially KK hospital, for an exclusive right.<br /><br />As for overseas expansion, it's a gone case already as they are not allowed to expand to where CBB is operating. What I think they will do is that CBB will try to make any of the business profitable and then sell it to Cordlife Singapore at a huge premium. Thus, Minority shareholder of Cordlife might suffer badly in times to come. This seemed to be what Cordlife Singapore is meant for.sgyounginvestorhttps://www.blogger.com/profile/02036598665471392859noreply@blogger.comtag:blogger.com,1999:blog-8488305785096287326.post-27745450644088911042012-04-07T08:42:03.615+08:002012-04-07T08:42:03.615+08:00great effort once again. it would seem that this b...great effort once again. it would seem that this business will need some differentiation. how would they be able to value add over competitors. because the cost to value add is so low, what you do i can also do better. End stage they will all be the same.<br /><br />still this may still be good business. thats a high PE. earnings yield 5%. rather low don't you think? the upside is overseas expansionKyithhttps://www.blogger.com/profile/07617228143744544821noreply@blogger.com