Singapore O&G (SOG) capped 2015 with solid earnings growth and a bright outlook, as the women's clinic and healthcare operator maintained its strong momentum from a stellar Catalist debut in June.
Net profit for the full year ended Dec 31 rose 25.7 per cent year-on-year to $5.34 million, on the back of a 21.2 per cent increase in revenue to $16.41 million, SOG said yesterday.
Earnings per share rose to 2.45 cents from 1.95 cents, and net asset value was 11.01 cents per share as at Dec 31, from 6.8 cents a year earlier.
"Our main growth drivers were the obstetrics and cancer specialist segments. In 2015, we delivered 1,633 babies, up from 1,462 in 2014," chief executive Ng Koon Keng said.
Despite the growth, SOG has only about 6.7 per cent share in the private delivery market, "so I think we still have plenty of room for growth in Singapore", Dr Ng told The Straits Times.
Upside for the cancer specialist segment is also expected, as SOG has recruited a new surgeon - Dr Lim Siew Kuan - who will join the team in May.
A final dividend of 1.15 cents a share was declared. SOG had paid out a 0.88 cent interim dividend in Sept 3, pushing the full year distribution to 87.2 per cent of net profit - just below the 90 per cent maximum set by its dividend policy.
With all our pieces for growth in place, we hope to maintain a good level of dividend payout in 2016.
DR NG KOON KENG, chief executive of Singapore O&G.
"With all our pieces for growth in place, we hope to maintain a good level of dividend payout in 2016," Dr Ng said.
SOG had a strong debut on the Catalist board in June, and its share price has gained some 185 per cent. Yesterday, it closed 1.5 cents or 2.08 per cent down at 70.5 cents.
Its success as a company and a stock is part of the bullish story in the healthcare sector, which has remained resilient despite last year's economic headwinds.
UG Healthcare, an examination glove manufacturer, also reported earnings growth for the six months to Dec 31.
Its revenue grew 20.1 per cent year-on-year to $30.14 million, leading to a 34 per cent increase in net profit to $3.23 million.
No dividend was declared for the period.
UG Healthcare's shares closed 0.5 cent or 1.54 per cent down at 32 cents yesterday, ahead of the results announcement.
UG Healthcare will continue ramping up its production capacity, executive director Lee Jun Yih said.