HC Surgical Specialists Ltd

About HC Surgical Specialist Ltd

HC Surgical Specialists Limited operates as a medical services group. The Company focuses on the provision of endoscopic procedures, including gastroscopies and colonoscopies, and general surgery services with a focus on colorectal procedures. HC Surgical Specialists serves customers in Singapore.

Est FY20 Results Announcement
25 Jul 2020

Investment Merits
  • Investing in the future “Superstar Doctors”
  • “Guaranteed” potentially value accretive acquisitions in the future
  • Medical support platform a prized asset that is scalable across specialities
  • Medinex- another class of medical growth
  • Founders’ interests are aligned with shareholders
  • Higher dividends expected with higher earnings
Research
Brokerages Report Analysts Recommendation TP
UOB KayHian Download File Lucas Teng Non- Rated N/A

Stock Information
Price 0.38
Market Cap (SGDm)             56.5
YE 30/5/2020
Earnings Release Date (Est) 25 Jul 20
52 wk high/low  0.6/ 0.34 
YTD % change -27.6%
Free Float % 23.1%
Insiders Holding 76.9%
Key financial highlights
Key Highlights 2017 2018 2019
Revenue (SGDm)            9.5          16.0          18.3
Net Profit (SGDm)            1.3            4.5            7.2
P/E       43.17       12.65          7.84
P/B            4.0            3.4            2.8
Return on Equity 16.4% 29.2% 39.4%
Net D/E -64.0% -16.8% -23.1%
Est Dividend Yield 6.6% 5.5% 5.8%
Source: CapitalIQ (Based on share price of S$0.38)

Risks

Inability to add new specialists, competition, Key man risk- However this is of diminishing concern- Profit contribution from HC Surgical Group (Dr Heah, Dr Chia, Dr Charles Tan and rental of clinics) has decreased from 100% in FY14 to about 50% in FY18 driven by contributions from Medinex, Dr Lai, Dr Ong etc. HCSS’s profit contribution is expected to become more diversified with more acquisitions and specialists