Shares of PPE maker Medtecs jump 16% after first-half profit soars

This came on the back of an increase in demand for personal protective apparel due to the Covid-19 pandemic.
This came on the back of an increase in demand for personal protective apparel due to the Covid-19 pandemic.PHOTO: MEDTECS

SINGAPORE (THE BUSINESS TIMES) - Shares of Medtecs International Corporation, which makes disposable personal protective equipment (PPE) and workwear, surged more than 16 per cent on Wednesday morning (Aug 12) after it posted a net profit of US$38.9 million for the six months ended June 30, 2020 - 101 times the US$385,000 its earnings a year ago.

As at 10.10am, the Catalist-listed stock had jumped 16.9 per cent or 16.5 cents to $1.14, surpassing its 52-week high of $1.05. Some 67 million shares changed hands, making it the most heavily traded counter on the Singapore bourse in early trade.

Shareinvestor data showed that there were no married trades, though a number of large trades exceeding $150,000 were transacted.

In its results announcement on Tuesday night, Medtecs said its half-year earnings were propped up by higher sales, higher gross profit margins, as well as forex gains.

Earnings per share came in at 7.078 US cents for the first half this year, up from 0.07 US cent in the preceding year.

Revenue for H1 2020 grew to US$162.6 million, nearly five times the US$33.2 million a year earlier.

This came on the back of an increase in demand for personal protective apparel due to the Covid-19 pandemic, which also raised awareness on healthcare products and led to a rise in sales from existing customers, Medtecs said.