Landwind is on the road to success

Landwind's business is growing and that has been the main reason behind its share price appreciation. The announcement of several good news have also helped to lift the company's valuations. Up till now however, few analysts are covering the stock and OCBC , one of the few who is covering the stock has set a price target of S$0.70. The company has announced that its proprietary ultrasound imaging product, the NeuCrystal C30 has gained CE Mark and this will mark its first foray into the European and International markets. In addition the company has also gained several new clients for its medical distribution business. However its shift into building its own range of products shows its commitment to increase profits as the company's FY2005 results shows that net profit growth is slightly below the growth in earnings and the company has attributed it to increase in distribution costs.

According to OCBC, out of 18,000 hospitals in China, one third are Landwind's clients. As China places more emphasis on healthcare, Landwind is expected to gain as its order books have risen considerably since 2004. The company is trading at between 12 to 13 times P/E according to FY2005 EPS and medical device companies in Singapore like LMA and Sunray are trading at a similar price band.