Singapore Medical Group sees first half net profit jump to $4m from $633,000 a year ago

SINGAPORE - Singapore Medical Group, a specialist healthcare services provider, posted a 534 per cent jump in net profit to S$4 million for the first half-year from S$633,000 in the corresponding period last year.

Revenue for the six months to end June rose 57.5 per cent to S$30.7 million from S$19.5 million a year ago.

Catalist-listed SMG, which has 35 clinics in Singapore, cited a 42.3 per cent jump in revenue of its health business segment to S$21.9 million from subsidiary, the Astra Companies, acquired in February this year.

Its diagnostic & aesthetics business segment surged 125.7 per cent to S$8.6 million for the first half, due to another subsidiary, Lifescan Imaging. SMG acquired the remaining 61.9 per cent interest it did not own in Lifescan in September last year.

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Earnings per share jumped to 1.03 Singapore cents for the quarter, up from 0.23 cents a year ago, while net asset value per share was 20.07 cents as of June 30, compared with 7.49 cents as of Dec 31, 2016.

SMG executive director and chief executive Dr Beng Teck Liang said its women's health and wellness business is "one of the largest in the private sector".

"To complement the obstetrics & gynaecology segment, we intend to aggressively scale our newly acquired paediatrics division to promote cross-selling opportunities within the group.

"Our acquisitions are precedent on the ability to achieve further organic growth. We have brought two O&G specialists on board and will continue to hire additional specialists in the near-term," he said.

To meet the intense demand for diagnostic imaging services, construction of a new diagnostics centre at Novena Medical Centre has started, Dr Beng said.

The group said it will focus on integrating its newly acquired entities in the second half of the year, while driving operational efficiencies in areas such as staffing, marketing and space utilisation.

Overseas, its Ciputra eye clinic in Jakarta is showing signs of growth, while initiatives in Vietnam have begun to gain traction, he added.