Singapore Medical Group profits up 388.3% to $4m in H1

Thanks to contributions from its healthcare and diagnostics & aesthetics segments.

Singapore Medical Group's (SMG) profits surged 388.3% to $4m in H1, from $830,000 in the same period last year.

According to RHB, its two segments posted strong growth, with healthcare up 42.3% YoY and diagnostic & aesthetics up 125.7%.

"Management is still looking for more acquisitions to fuel growth, hiring more doctors while at the same time, optimising processes as it goes along to improve its utilisation," RHB said.

SMG acquired the paediatric clinics in Toa Payoh and Bishan, making it one of the largest practitioners in the private sector leaning towards children's health.

The company also has a new diagnostic centre at Novena Medical Hub. The facility spans 5,500 sqft. and plans to provide a range of cross-disciplinary radiology services.

Here's more from RHB:

Singapore Medical Group (SGM) remains bullish on Vietnam. Management has hired a pediatrics leader to spearhead growth initiatives at its Careplus clinics in Vietnam.

It has also implemented growth initiatives at the two 15,000 sq ft clinics and hopes to see profitability by end-FY18F. Its eye clinic in Jakarta, which was loss making, is showing signs of growth and profitability.

Management is keen to expand into new medical segments like cardiology, dental paediatrics and further expand into aesthetics. However, it is likely to be making smaller acquisitions then before, targeting single-digit multiple acquisitions.