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Singapore Medical Group (SMG) last year more than tripled its net profit to a record $8.5 million, emerging as of the largest specialist practitioners dedicated to women’s health and wellness.
UOB Kay Hian expects SW1 to contribute S$5m-10m in sales and profit of S$1m-2m per year. |
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|
S$’000 |
1Q18 |
1Q17 |
Change |
|
Revenue |
19,229 |
14,033 |
37.0% |
|
Gross Profit |
8,917 |
6,064 |
47.0% |
|
Gross Profit |
46.4 |
43.2 |
3.2 pts |
|
EBITDA |
4,942 |
2,332 |
111.9% |
|
Profit Attributable |
3,421 |
1,432 |
138.9% |
|
Net Profit |
17.8 |
10.2 |
7.6 pts |
|
Earnings/Share |
0.74 |
0.45 |
64.4% |
Aside from SW1, the quarters ahead will likely see positive momentum from:
♦ A new diagnostic centre at OUE Downtown, which could narrow its losses.
♦ A new Novena centre, where utilisation is 45-50%.
♦ JV/ associates: Eye clinic PT Citputra SMG in Jakarta has turned profitable; CHA SMG (Australia) is profitable and seeking more market share. 
SMG has a stake in the CarePlus Clinic Vietnam, a multi-disciplinary healthcare specialist clinic.
Picture: CompanyStill loss-making was its Vietnam JV which owns a specialist clinic which focuses on health screening, women’s health, pediatrics and diagnostic imaging.
In sum, the share of losses of associates/JV dropped to S$12,000 in 1Q18, from S$48,000 a year earlier.
The group's overall financial performance in 1Q can be gleaned from the table (right).
This was SMG's inaugural quarterly report as its growth in market capitalization had exceeded the level required for mandatory quarterly reporting under listing rules.
The top line was driven by the Healthcare segment which increased 47.7% yoy to S$14.3 million. The Diagnostic & Aesthetics segment rose 14.2% yoy to S$4.9 million.
EBITDA increased 111.9% yoy to S$4.9 million while EBITDA margin expanded 9.1 percentage points to 25.7%, underpinned by continuous efforts to streamline operations while deriving cost synergies from recent acquisitions.
"For each of the acquisitions we completed in 2017, we have helped to further fuel organic growth while driving operational efficiencies in staffing and marketing. These initiatives have translated to our net profit margin climbing 7.6 percentage points to 17.8%.
"Similarly, in our diagnostics segment, we officially opened our 5,500 square feet centre at Novena Medical Center in February. Within diagnostics, we are planning to add more radiologists in the third quarter of 2018 as we continue to see opportunities for growth. In addition, we have started our cardiology practice with the opening of 2 new clinics in Novena and Paragon. "These initiatives will continue throughout the year as new clinics in key segments such as O&G, paediatrics and other specialist verticals are being formulated.” |
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