ALLIANCE HEALTHCARE GROUP LTD (SGX:MIJ)
Alliance Healthcare - Capitalising On Digitalisation
- Alliance Healthcare (SGX:MIJ)'s 1H22 PATMI almost doubled to S$1.68mil, while revenue increased 23% y-o-y, mainly driven by higher revenue contribution from mobile and digital healthcare services.
- Strong operating cash flow of S$4.7mil, underpinning robust cash position of S$18.4mil and higher net cash of S$12.3mil.
The Positives
Huge growth in mobile and digital health services.
- Revenue more than tripled, while pretax profit increased from S$24k in 1H21 to US$1.2mil in 1H22. Higher revenue was due to Jaga-Me’s involvement in provision of COVID-19 related medical services, including home swabs, onsite vaccines and telemedicine consultations for home recovery programme.
GP clinics recorded steady growth.
- Revenue from GP clinics increased 27%, while pretax profit more than doubled. The easing of COVID-19 restrictions resulted in more patient visits at GP clinics.
The Negatives
Managed healthcare services recorded net loss.
- Net loss in 1H22 deepened to S$167k, from S$126.3k, as patient volume has yet to return to pre-COVID level.
Decreased revenue and profit contribution from pharmaceutical services.
- There was reduced demand for medical supplies from certain hospitals, after the stocking in 1H21.
Outlook
- Alliance Healthcare is committed to strengthening its digital technology capabilities to remain in the forefront of an increasingly digitalised healthcare sector, especially in a post-COVID world. Digitalisation in healthcare provides cost-effective, time-saving and quality healthcare.
- See
Vivian Ye
Phillip Securities Research
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https://www.stocksbnb.com/
2022-02-16
SGX Stock
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