Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Headquartered in Singapore, SooChow CSSD Capital Markets (Asia) is an investment bank focusing on emerging growth companies across Asia, providing a full suite of investment banking services, including corporate finance, mergers and acquisitions advisory, equity capital markets, institutional equities sales and trading and equities research.

Research from SooChow CSSD Capital Markets (Asia)

Equity Bottom-Up

<div><div><div><p>1H21 results missed our expectations as revenue and net profit made up only 40%/38% of our FY21E forecasts. We note that the premise of a recovery in discretionary spending failed to precipitate due to recurring Covid-19 infection waves. Nonetheless, we continue to believe the market is undervaluing CLGL given its large cash hoard (1H21: SGD73.4m) as well as the lifetime present value of clients. We reiterate BUY, but cut our TP to SGD0.47 (prior: SGD0.52).</p></div></div></div>

1H21 results missed our expectations as revenue and net profit made up only 40%/38% of our FY21E forecasts. We note that the premise of a recovery in discretionary spending failed to precipitate due to recurring Covid-19 infection waves. Nonetheless, we continue to believe the market is undervaluing CLGL given its large cash hoard (1H21: SGD73.4m) as well as the lifetime present value of clients. We reiterate BUY, but cut our TP to SGD0.47 (prior: SGD0.52).

Cordlife

Cordlife Group (CLGL SP)