Fairly good volume today with 564 lots traded. Closed at 11.5 cts. There is a good chance that volume will pick up further. Company is well exposed in China as can be seen from the earlier write up.
Vicplas is well positioned in China. With the outbreak of the wuhan virus, i expect the sales of the medical devices to surge meaningfully. In the last financial year, the medical devices contributed a profit of $2.8 mil against a total profit of $4.2 mil. Any upsurge in demand will imply an upsurge in profitability.
The company being in the Airway Management n Respiratory devices sector, is likely to see a huge invcease in demand. Just my guess.
Hi Joseph, thank you for your posts on Vicplas which looks interesting. But regarding China market, the FY19 revenue was only S$986K from China. In FY18, it was S$2.8 million.
Vicplas being a contract manufacturer with 2 factories in China should be doing much better this FY?
I may be wrong but I do believe that given the current health situations in wuhan n other places in China, the medical devices sector should do well especially the Air Management n Respiratory areas. Below are some figures on the medical devices sector:
Revenue from medical devices.
2017 - $24.9 mil
2018 - $30.4 mil
2019 - $45.0 mil
The above is the overall performance of the sector, inclusive of China n other countries.
For your info, i was long in Vicplas before the wuhan health issues. Reasons were:
3 main reasons why i am vested in this counter:
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.
These are some of the things Forefront Medical is doing. Its 100% own by Vicplas.
Forefront Medical Technology
Your integrated contract manufacturer for your medical device needs
Wholly-owned subsidiary of VicPlas International, a public-listed company on the Main Board of the Singapore Stock Exchange (SGX) Serving global medical companies since 2002
Headquartered in Singapore, with additional manufacturing facilities in Changzhou and Xiamen.
FDA registered and TUV ISO 13485 accredited, state-of-the-art manufacturing facilities
Customer-centric approach with a focus on understanding and delivering the most complex requirements
Specialists in producing a wide range of medical disposable, diagnostics, drug delivery products and electro-mechanical sub-components, including:
Laryngeal mask
Respiratory airways
Diagnostic devices
Drug delivery systems
Enteral feeding catheters
Infusion sets
Wire reinforced tubes
Optically clear components
Patient monitoring devices
Google more on Forefront Medicals for more information.
