Strong growth despite gloomy global backdrop. Despite worsening
economic indicators from the US and slower global economic growth during the corresponding period, LMA reported 22.6% and 133.7% y-o-y growth in revenue and net income respectively for 3QFY08. However for 9MFY08, while revenue registered an increase of 9.2% to US$81.1m, net income dropped marginally by 5.0% to US$9.7m y-o-y.

Valuation. NRA Capital expect LMA’s business to continue its growth despite the current economic slowdown. The recent launch of LMA PerfecTemp warming pad and the full range of sizes of LMA Supreme mask would contribute favourably to FY08 sales. Future acquisitions of complementary businesses are also possible given its current strong cash reserves. In view of 9MFY08 results, NRA revise down the earnings forecast marginally. They maintain BUY recommendation and target price of S$0.19