Asian Healthcare Specialists - UOB Kay Hian 2018-04-18: IPO Fact Sheet

Asian Healthcare Specialists - UOB Kay Hian 2018-04-18: IPO FACT SHEET ASIAN HEALTHCARE SPECIALISTS 1J3.SI

Asian Healthcare Specialists - IPO FACT SHEET


ISSUE STATISTICS 

  • Offer Size: 46.9m new shares 
  • Public Tranche: n.a 
  • Placement Tranche: 46.9m shares 
  • Price: S$0.23 
  • NAV per share (post IPO): S$0.0364 
  • Historical PE: 127.8x (FY17) 
  • Market Cap (post-IPO): S$66.7m 
  • Trading: 20 Apr 18, 9.00 am (on “ready” basis) 
  • Lead Manager: RHT Capital.



BACKGROUND

  • Asian Healthcare Specialists and its subsidiaries have five senior and experienced orthopaedic medical specialists operating at four clinics under “The Orthopaedic Centre” brand at convenient and accessible locations across Singapore. Each of the group’s medical specialists is a sub-specialist in the specific areas of orthopaedic, trauma and sports medicine, ranging from specialities in spine (neck and back), shoulder and elbow to hip, knee and foot and ankle.
  • The group aims to be a one-stop integrated healthcare provider of all musculoskeletal-related medical care, including post-surgery rehabilitation services such as physiotherapy and ancillary services such as pain management. 
  • The group has a patient-oriented philosophy of providing personalised, quality and integrated medical care and was recently awarded the bronze prize for best sports and orthopaedic medicine by Expat Living Readers’ Choice Awards 2018.


BUSINESS STRATEGY AND FUTURE PLANS

  • Expand business through acquisitions, JVs or strategic alliances.
  • Invest in synergistic businesses.
  • Invest in management and healthcare professionals.
  • Grow the “The Orthopaedic Centre” and “Asian Healthcare Specialists” brand names.
  • Grow patient base.



COMPETITIVE STRENGTHS


  • Highly-qualified and experienced medical specialists who provide a comprehensive range of orthopaedic, sports and trauma services.
  • Provide in-depth sub-specialised services, employ advanced techniques and technology in medical treatment and perform complex revision surgery.
  • Well-positioned to capture the growing demand for private orthopaedic services arising from an ageing population, rising income levels and an increase in the number of insured patients.
  • Operate on an asset-light, strong-cash flow business model.
  • Business model aligns the interests of the company’s founding medical specialists and employees with those of the group and shareholders.


KEY RISKS

  • Dependence on key medical specialists.
  • Dependence on skilled healthcare professionals and management personnel.
  • Competition from other similar orthopaedic service providers in private and government-owned hospitals and smaller clinics.
  • Increase in operating costs, namely lease rental rates and risk of relocation, which may disrupt business operations.
  • Reliance on brand names and trademarks of the business as well as the reputation of medical specialists.
  • Spread or outbreak of any contagious or virulent diseases.
  • Changes in regulations and licensing requirements governing the healthcare industry, the compliance of which may be costly and the company may not be able to retain, renew or obtain the licences and permits necessary for operations.
  • Exposure to risks of medical and legal claims, regulatory actions and professional liability arising from the provision of specialist orthopaedic, trauma and sports services and business operations.
  • Exposure to risks associated with disposal of biological hazards and use of certain medical equipment. 
  • Rapid technological advances, technological failures and other challenges related to the company’s medical equipment and information technology systems could adversely affect the business. 


DIVIDEND POLICY

  • Intends to recommend a dividend of not less than 50.0% of net profits attributable to shareholders as dividends for FY2018 and FY2019.
  • The final dividend for FY2018 (if any) will take into account the interim dividend of $800,000 declared by the company and approved by shareholders on 31 January 2018.




Singapore Research UOB Kay Hian | http://research.uobkayhian.com/ 2018-04-18
SGX Stock Analyst Report NOT RATED Maintain NOT RATED 99998 Same 99998



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