The company has consistently distributed dividends of 0.75 cts per year for
the last 5 years. This give a yield of 8.2% on the last closing price of 9.1 cts.
1. excellent dividend yield
full year dividend 0.75 cts, price 9.0 cts ... yield 8.3%
2. low valuation
on profit of $4.2 mil against market cap of $45.6 mil, the p/e is 10.8 X.
This is relatively low considering the fact that it has a growing medical
devices sector n its high dividend yield
3. its likely to be a growth company
Its efforts in the expansion of the medical devices segment seem to
bear fruits. It has widened its customer base, introduce more products
and gone into more segments of the medical industry. Example, they
are now in Airway Management, Respiratory, Endoscopy, Drug Delivery
and Vascular.
As company is thinly traded, this counter is not for punters/traders. Its
more for long term holder or dividend investors.
The medical devices segment has evolved significantly since FY2013. Its focus is still 100% on the medical devices sector but rather than having most of its revenue derived from a single customer for a single family of products in a single medical industry segment, it now has a much broader range of customers in different locations and manufactures a much wider range of products from components to full medical devices for an increasing number of medical industry segments such as Airway Management, Respiratory, Endoscopy, Drug Delivery and Vascular. Also, the segment has shown substantial depth of experience and expertise that gives its global customers the confidence to place orders with it for the manufacturing of their medical devices.
Over the last six years (including FY2019) the segment has focused on improvements in the following areas:
* Building more and better capabilities to provide customers with the products, services and people needed to give them the right solutions, all under one roof
*Investing in automation to improve plant utilisation and efficiency
*Investing in training to build a highly proactive and experienced team with the right technical expertise and high engagement in the business
*Expanding into electro-mechanical design and manufacture &bull Faster and more effective collaborative project commercialisation
Certainly, there will be challenges along the way. At this moment, the key challenge is the uncertainty arising from the ongoing trade tensions between the major economies. The segment continues to monitor this situation very closely and will expand its Singapore manufacturing operations to provide a greater range of manufacturing options to customers.
In summary, the medical devices segment has charted its clear and consistent direction for achieving growth over the long term. It will continue to improve capabilities and operational efficiency in order to be a strategic manufacturing partner to global product owners in the medical devices industry. Whether new business opportunities are found in more efficient manufacturing of an existing mature product or scaling up manufacturing of a new product design, the medical devices segment is poised to offer its customers the right solutions for their medical devices projects.
The following is the minutes and presentation slides for AGM 2019. The company will publish the minutes of AGM from last AGM onwards. There are some additional information you might be interested.
The design, development and manufacture of sterile and non-sterile medical devices through our wholly-owned subsidiaries,
- Forefront Medical Technology (Pte) Ltd and
- Forefront Medical Investment Pte. Ltd. in Singapore
- Forefront (Xiamen) Medical Devices Co., Ltd and
- Forefront Medical Technology (Jiangsu) Co., Ltd in China
- and 81% owned subsidiary, XentiQ (Pte.) Ltd. in Singapore.
A quote from 1st half financial report:
full medical devices for an increasing number of medical industry segments such as
- Airway Management,
- Respiratory, Endoscopy,
- Drug Delivery and
- Vascular.
Also, the segment has shown substantial depth of experience and expertise that gives its global customers the confidence to place orders with it for the manufacturing of their medical devices.
