Medinex Limited - DBS Research 2018-12-04: IPO Factsheet

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MEDINEX LIMITED (SGX:OTX)

Medinex Limited - IPO Factsheet

Business

• Medinex Limited, together with its subsidiaries, is a Singapore-based medical support services provider, specialising in providing professional support services to medical clinics. The scope of medical support services includes overseeing the setting up of clinics, facilitating applications for relevant clinic licences and providing business support services such as accounting and tax agent services, human resource management services and corporate secretarial services.
• Medinex also focuses on providing pharmaceutical services to its clients. As an ancillary service, they provide business support services such as accounting and tax agent services, and corporate services to companies outside of the healthcare industry.

Competitive Strengths

Comprehensive integrated medical support services provider

• It is able to provide customers with customised solutions, and support them through the entire business and operations process.

Maintains long-standing and established relationships with customers

• Strong and long-standing relationships with its customers, together with proven track record, put Medinex in a favourable position to maintain existing customer relationships and obtain new customers.

Familiar with the business and regulatory landscape of the healthcare industry

• Medinex is able to leverage on its network of contacts and familiarity with the business and regulatory landscape in Singapore to support its Medical Support Services business.

Business Strategies and Outlook

Realises synergies among its subsidiaries

•  Integrating various services allows Medinex to realise synergies and benefit from the current and expanding customer base.

Expands marketing and business development team

• Medinex intends to bolster its marketing and business development activities and capabilities to reach out to a wider and larger customer base.

Expands group’s business operations via acquisitions, joint ventures and/or strategic partnerships

• Medinex may expand its business operations through acquisitions, joint ventures and/or strategic in Singapore or verseas.

Prospects

• Medinex believes that the demand for the Group’s services is likely to increase in the future due to:
  1. increasing demand for medical services resulting from a rapidly ageing population and increasing affluence;
  2. increasing awareness of data privacy protection.

Key Risks

Affected by any adverse impact on reputation and goodwill

• Any negative publicity or announcement about the Group may tarnish its reputation and goodwill with its clients, and may adversely affect the market perception of the Company.

Potential liability from negligence or claims

• Business support services are susceptible to potential liability from negligence, breach of client contract and other similar client claims, complaints and allegations.

Exposed to the risk of unauthorised disclosure

• Failure to keep clients’ proprietary information confidential may lead to exposure to significant liability.

Reliant on the ability to attract and retain talent

• Services depend on the ability to attract and retain high quality professionals for the Group’s Medical Support Services and Business Support Services.

Unable to find alternative suppliers for its Pharmaceutical Services

• Purchases of pharmaceutical products from Zuellig and DKSH accounted for approximately 53.09% of the Group’s total purchases. Medinex does not enter into long term contracts with Zuellig or DKSH.

Dividend Policy

• The Group intends to distribute dividends of no less than 70% of the net profit after tax attributable to shareholders for FY2018, FY2019 and FY2020.

Singapore Research Team DBS Group Research | https://www.dbsvickers.com/ 2018-12-04

SGX Stock Analyst Report NOT RATED MAINTAIN NOT RATED 99998 SAME 99998