GOLDEN MEDITECH CO

Golden Meditech Started At Peer Perform - BS Bear Stearns starts coverage of Golden Meditech (8180.HK) at Peer Perform, end-2008 target of HK$4.30; notes it's largest supplier of Autologous Blood Recovery System (ABRS) used in hospital operating rooms, has China market share of more than 80%, according to company. Bear Stearns says: "As more ABRS are installed in hospitals in China, the sale of consumable chambers is beginning to make a meaningful contribution to sales and profit growth rates for this division." Notes company has good track record in new projects; has 9.9% stake in China Medical worth about US$100 million, 20X its initial investment. Says shares trading at fiscal 2008E P/E of 17.4X (excluding exceptional gains), estimates 26.2% forward EPS CAGR in fiscal 2008-2010E; DCF-based target price implies calendarized 2008E P/E of 17.6X vs peer group average of 23.5X. Shares last HK$3.40

Golden Meditech Company Limited (Golden Meditech), together with its subsidiaries, is an integrated medical enterprise in China. The Company operates in three business segments: medical devices, cord blood bank and Chinese herbal medicine. The medical device segment is engaged in the development, manufacture, sale and distribution of medical devices and personal healthcare monitoring products. The medical device segment also provides consulting services. The cord blood bank segment provides examination, separation, processing and storage services for umbilical cord blood stem cells. The cord blood bank segment also conducts research into the clinical applications of blood stem cells. The Chinese herbal medicine segment is involved in the development and manufacture of natural herbal medicines. Some of its wholly owned subsidiaries include China Bright Group Co. Limited, Golden Meditech (BVI) Company Limited and Golden Meditech Medical Devices Distribution Company Limited. Hong Kong, HKG +852-23110922 (Phone) Company website: http://www.goldenmeditech.com