Alliance Healthcare Group - Phillip Securities 2021-10-28: Innovative Healthcare Provider


Alliance Healthcare Group - Innovative Healthcare Provider

  • Alliance Healthcare's revenue grew at CAGR of 11.1% from FY18 to FY21. The new business segment, mobile and digital healthcare services, contributed a full year’s revenue in FY21.
  • Number of companies covered under Managed Healthcare Solutions grew at CAGR of 22.3% from 2016 to 2020.
  • Alliance Healthcare has been maintaining its dividend payout ratio of 30% since listing in 2019.

Alliance Healthcare - Company Background

  • Established in 1994, Alliance Healthcare (SGX:MIJ) is a reliable medical brand with both in-house and GP specialist clinics, and specialises in corporate health solutions. They are also a wholesale pharmaceutical company facilitating timely access of medications to the region, and a progressive healthcare company making quality medical care within reach through mobile and home care service.

Alliance Healthcare - Key Highlights

  • Revenue grew at CAGR of 11.1% from FY18 to FY21. Alliance Healthcare derives most of its revenue from rendering of services, including GP clinic and specialist care services and sale of pharmaceutical products. With 17 GP clinics and five specialist clinics across Singapore, Alliance Healthcare is able to serve customers island wide. The new business segment, mobile and digital healthcare services contributed a full year’s revenue in FY21.
  • Companies covered under Managed Healthcare Solutions growing. The number of companies covered grew from 1,478 in 2016 to 3,309 in 2020, as at 31 December 2020, at CAGR of 22.3%. With the Alliance Healthcare Network which covers more than 1,000 medical services providers, including GP, specialist, dental, physiotherapy, companies are able to benefit from its wide range of services for their employees.
  • Expand product offerings. Since April 2020, Alliance Healthcare launched HeyAlly, its digital and telemedicine platform.
    • HeyAlly provides users access to services such as telemedicine, second opinion and comes with an online store offering a range of healthcare and wellness solutions, like health screening and vaccination.
  • In January 2020, Alliance Healthcare acquired a 55% stake in Jaga-Me, a mobile healthcare company. The app allows users to schedule and pay for clinical services, medical equipment and consumables delivered to them.
    • Jaga-Me deploys a network of over five hundred licensed healthcare professionals. The app was also one of the medical providers appointed by the Ministry of Health to administer home vaccinations and home COVID-19 swab tests.
  • First distribution of dividends in FY20. Newly listed on SGX Catalist since 2019, Alliance Healthcare recommended a dividend payout ratio of 30%. Since then, Alliance Healthcare has declared dividends of 0.34 and 0.23 cents for FY20 and FY21 respectively, representing payout ratios of 30% and 31% respectively. This reflects Alliance Healthcare’s confidence in the strength and quality of the businesses.
  • Anticipated re-opening of borders should benefit. As Singapore’s borders are expected to gradually reopen, Alliance Healthcare is cautiously optimistic that it will positively impact its businesses, particularly the managed healthcare solutions and GP clinics services segments, with more clinic visits.
  • Net cash position. Alliance Healthcare has maintained its net cash position since FY19, at S$9.9mil in FY21. At 28% of its market cap, its balance sheet remains healthy.
  • See
  • See the PDF report attached below for complete analysis on Alliance Healthcare.

Vivian Ye Phillip Securities Research | https://www.stocksbnb.com/ 2021-10-28
SGX Stock Analyst Report NOT RATED MAINTAIN NOT RATED 99998.000 SAME 99998.000