Asian Healthcare

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Growth Ambition

Asian Healthcare was listed on Catalist of SGX on Apr-2018 with four Orthopaedic clinics in Singapore located at Novena, Farrer, Gleneagles and Orchard. The group now have 14 clinics across Singapore. 

In Oct-2018, Heliconia Capital, a wholly owned subsidiary of Temasek acquired 5.48% of the company shares. 

Through the 51% acquisition of Cornerstone Asia Health (CAH) in Feb-2020, the Group expanded to: 

  • Anaesthesia,

  • ENT: Otorhinolaryngology

  • Other Medical Services: Dermatology, family medicine gastroenterology, ophthalmology, , urology services. 

In Aug-2020, the company expanded to Vietnam via subsidiary Fansipan 2 Holdings; acquiring 99.9% of two Pacific Medical Hospitals with a capacity of more than 300 beds:

  • Opened in 2001 comprising 40 doctors and 130 nurses

  • Opened in 2015 comprising 60 doctors and 130 nurses. 

Financial - FYSep2021

Revenue grew 63% to $28M. Net profit increased 73% to $4.5M on 16.2% margin. 

Orthopaedic business were mostly range bound with earning facing downward pressure. This could be because of fewer sports activities due to the pandemic. 

Anaesthesia revenue grew > 33% the past two years. Earning grew but margin have trended lower. 

ENT business at infancy stage registered a small loss of $0.3M. 

Other Medical Services revenue constitute 50% mix and 62% of profit became the group key earning driver. 

Vietnam business recorded a loss of $0.35M. 

Opinion

Asian Healthcare is a small business with potential. Core Orthopaedic performance had been mediocre. With Singapore opening post Covid-19 pandemic, there is a likelihood that this segment may improve with time.

ENT is a 'question mark' at the moment. Time is need to ascertain its potential.

Meanwhile Other Medical Services, a collection of varied services remain an important earning driver. 

As for Vietnam Pacific Medical Hospitals, some caution and attention is warranted because it is not known if existing management possess the necessary skills to turnaround hospitals. Heliconia Capital could play a useful role in this area.