Results First Take: FY21 net profit record high but missed our forecast by 20%
- FY21 revenue recorded y-o-y increase of 49% to S$205.6m from S$137.6m in FY20
- Net profit after tax attributable to shareholders rose by 55% to S$30.5m in FY21 from S$19.7m in FY20
- Fourth quarterly dividend of 1 cent per share, following last three quarters of 1 cent per share each
Results Summary
| 4Q20 | 4Q21 | y-o-y change | |
| Revenue (S$m) | 43.8 | 53.3 | +22% |
| EBITDA (S$m) | 11.8 | 10.4 | -12% |
| PATMI (S$m) | 5.9 | 3.2 | -47% |
| Earnings per share (cents) | 0.63 | 0.34 |
| 1Q20 | 2Q20 | 3Q20 | 4Q20 | 1Q21 | 2Q21 | 3Q21 | 4Q21 | |
| Revenue (S$m) | 29.8 | 24.9 | 39.1 | 43.8 | 43.8 | 50.8 | 57.8 | 53.3 |
| Primary Healthcare | 27.8 | 20.5 | 37.3 | 40.8 | 39.2 | 38.1 | 39.3 | 43.6 |
| Medical Laboratory and Dental Equipment & Supplies | 2.1 | 4.4 | 1.8 | 3.0 | 4.6 | 12.7 | 18.4 | 9.7 |
| PATMI (S$m) | 1.3 | 6.8 | 5.6 | 5.9 | 9.4 | 8.4 | 9.8 | 3.2 |
| EBIT | ||||||||
| Primary Healthcare | 6.8 | 8.1 | 10.1 | 11.6 | 9.2 | 9.6 | 10.0 | 8.2 |
| Medical Laboratory and Dental Equipment & Supplies | 0.3 | 1.8 | -1.0 | 0.2 | 1.5 | 7.2 | 11.1 | 2.5 |
Weaker than expected 4Q21 performance
- Revenue increased 22% to S$53.3m in 4Q21 from S$43.8m in 4Q20
- Net profit after tax attributable to shareholders declined 47% to S$3.2m in 4Q21 from S$5.9m in 4Q20
- Main miss came from Acumen, while new clinics in core dental business took more time to ramp up than expected
Core dental business
- FY21 revenue for this segment stands at S$160.2m, above our S$140.6m forecast
- No of dental clinics in Singapore: 97 (as at 31 Dec 2021) vs 83 (as at 31 Dec 2020)
- Roughly in line with our 15 new clinics a year projection
- No. of dental clinics in Malaysia: 38 (as at 31 Dec 2021) vs 34 (as at 31 Dec 2020)
- Roughly in line with our 5 new clinics a year projection
- No. of dentists: 270 (as at 31 Dec 2021) vs 250 (as at 30 Dec 2021)
Acumen Diagnostics business
- FY21 revenue for this segment came in at S$45.4m, missing our forecast of S$69.5m by 35%
- 4Q21 revenue for medical laboratory and dental equipment & supplies came in much softer than expected at S$9.7m for 4Q21 (vs S$18.4m for 3Q21 sand S$12.7m for 2Q21)
- We believe this is due to the shift towards ART in Singapore, resulting in a fall in demand for PCR testing
- Looking to distribute ART test kits, as well as diversify with new pipeline of new PCR tests for infectious diseases, sepsis and cancer on top of COVID-19 PCR testing
- Exploring proposed listing on NASDAQ stock exchange
Assuming the company continues to pay out a quarterly 1ct dividend, this works out to be an attractive 7% dividend yield while we wait for its core dental business expansion to bear fruit.
Our estimates are under review, while the analyst briefing is on 7 March.