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.

 

 

 

 

1QFY20 Results Announcement
Wednesday, 9 Oct

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 0.565
Market Cap (SGDm) 84
YE 05/2019
Earnings Release Date (Est) 9/10/2019
52 wk high/low 0.685/0.540
YTD % change -6.61%
Free Float % 33%
Insiders Holding 67%
Key financial highlights
Key Highlights 2017 2018 2019
Revenue (SGDm) 9 16 18
Net Profit (SGDm) 1 4 7
P/E 64.3 18.8 11.7
P/B 6.1 5.0 4.2
Return on Equity 16.4% 29.2% 39.4%
Net D/E -62.9% -16.0% -22.3%
Est Dividend Yield 4.4% 3.7% 3.9%
Source: Bloomberg (Based on share price of S$0.565)

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