PPE maker Medtecs 2020 profit soars to US$131.7m from US$1.2m a year ago

Medtecs' earnings per share came in at 23.973 US cents for FY2020.
Medtecs' earnings per share came in at 23.973 US cents for FY2020.PHOTO: AFP

SINGAPORE (THE BUSINESS TIMES) - Medtecs International, a maker of personal protective equipment (PPE), saw net profit for last year swell almost 110 times to US$131.7 million (S$175.2 million) from US$1.2 million for 2019.

This was attributed to improved economies of scale and higher proportion of sales of Medtecs-branded products and PPEs, the medical equipment supplier said in a regulatory filing on Monday (March 1).

Earnings per share came in at 23.973 US cents for FY2020, up from 0.211 US cent for the preceding year.

Revenue for the year to Dec 31, 20202, jumped to US$400.3 million, nearly six times the US$69 million a year earlier. This came on the back of a global surge in the demand for PPEs arising from the Covid-19 pandemic, which led to an increase in sales, Medtecs said.

A final cash dividend of 4.18 US cents has been recommended for the financial year ended Dec 31, 2020, versus no dividend for the year-ago period. The date for this payment is to be announced, subject to approval by shareholders at the forthcoming general meeting, the company said.

In another bourse filing, Medtecs noted that it has incorporated a subsidiary in the US with a paid-up capital of US$1,000 on Oct 19, 2020. The principal activities of Medtecs USA Corporation is in the manufacturing and supplying of PPE and healthcare products.

Separately, Ms Yang Wan Chien, who is based in Taiwan, will be appointed as general counsel with effect from March 1.

Ms Yang, 40, is the daughter of executive chairman Clement Yang and non-executive chairman of Medtecs Taiwan Corp, Sherry Chen. She is also the sister of William Yang, who is deputy chairman, executive director and chief executive of the company.

In November last year, Medtecs' shares climbed 12 per cent after it announced that it is eyeing a mainboard transfer on the Singapore Exchange.

The counter closed at $1.10 on Friday, down $0.01 or 0.9 per cent last Friday.

LISTEN TO BT MARK TO MARKET PODCAST