Original-Research: BRASTER S.A. (von East Value Research GmbH ):

Original-Research: BRASTER S.A. - von East Value Research GmbH

Einstufung von East Value Research GmbH zu BRASTER S.A.

Unternehmen: BRASTER S.A.

ISIN: PLBRSTR00014

Anlass der Studie: Update

seit: 08.04.2016

Kursziel: PLN 32-PLN 40

Letzte Ratingänderung:

Analyst: Adrian Kowollik

BRASTER S.A. (BRA) is a Polish company, which develops a telehealth device

that allows non-invasive,early-stage detection of breast cancer.

Since our first report in March 2015, BRASTER has shown that it delivers

what it had promised to investors, which in our view has made the stock

less risky. In June 2015, the company successfully completed a share issue,

whose volume was only slightly below what we had expected (PLN 39m vs. PLN

40m). This measure was essential in order to take further steps towards

commercialization of the BRASTER Tester device. Another very important

milestone was reached in December 2015, when BRASTER announced that its

production plant for matrices (core component of the BRASTER Tester device)

in Szeligi near Warsaw was ready.

BRASTER maintains its objective, which foresees the introduction of the

BRASTER Tester on the market in Q4/16, and we believe that it is realistic.

According to management, the final product, which has been designed by

Dutch company PEZY Group that also works together with the electronics

giant Phillips, is now ready. A partner from Sweden (Rosti) will organize

the whole manufacturing process, including the selection of appropriate

suppliers and purchasing of components. After tests of the production

facility and a marketing campaign in the summer months, BRASTER plans to

start selling its Tester device from Q4/16 in Poland and from H2/17

internationally. In Poland, the company wants to focus especially on online

shops, pharmacies and women's doctors, while on foreign markets it plans to

distribute the BRASTER Tester through medical partners. We would like to

emphasize that while it has already been in discussions with Polish

distributors for several months, BRASTER will only sign distribution

agreements 2-3 months before start of production.

Although we have adjusted our model in order to account for lower revenue

growth in the medium term, our fair value for BRASTER's shares of PLN

32-PLN 40 remains unchanged. While BRA's liquid funds amounted to PLN 25.6m

at the end of 2015, its management believe that it might have to raise

additional debt or equity capital. The reason is a plan to enter the US

market already in 2017 (thus one year before previous schedule), which

would require a certification by the Food and Drug Administration (FDA) as

well as additional investments in working capital. As the US is the largest

health market worldwide, it is much easier to introduce products in other

regions, which have already been approved for sale in North America.

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/13715.pdf

Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden

www.eastvalueresearch.com.

Kontakt für Rückfragen

Adrian Kowollik

a.kowollik@eastvalueresearch.com

-------------------übermittelt durch die EQS Group AG.-------------------

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