Growth Ambition

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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. 

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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. 

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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. 

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Financial - FYSep2021

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

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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. 

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Vietnam business recorded a loss of $0.35M. 

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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. 

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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.