Results First Take – 1Q22 net profit below expectations
- 1Q22 revenue recorded y-o-y increase of 7% to S$46.8m from S$43.8m in 1Q21
- Net profit after tax attributable to shareholders declined by 31% y-o-y to S$6.5m but improved 26% excluding other gains or losses
- Interim dividend of 0.4 Scts per share
- We have a BUY recommendation and TP of S$0.72 currently
Results Summary
| 1Q21 | 1Q22 | y-o-y change | |
| Revenue (S$m) | 43.8 | 46.8 | +7% |
| EBITDA (S$m) | 14.5 | 12.9 | -14% |
| EBITDA excl other gains or losses (S$m) | 10.6 | 12.9 | +21% |
| PATMI (S$m) | 9.4 | 6.5 | -31% |
| PATMI excl other gains or losses (S$m) | 5.2 | 6.5 | +26% |
| 1Q20 | 2Q20 | 3Q20 | 4Q20 | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 1Q22 | |
| Revenue (S$m) | 29.8 | 24.9 | 39.1 | 43.8 | 43.8 | 50.8 | 57.8 | 53.3 | 46.8 |
| Primary Healthcare | 27.8 | 20.5 | 37.3 | 40.8 | 39.2 | 38.1 | 39.3 | 43.6 | 38.6 |
| Medical Laboratory and Dental Equipment & Supplies | 2.1 | 4.4 | 1.8 | 3.0 | 4.6 | 12.7 | 18.4 | 9.7 | 8.2 |
| PATMI (S$m) | 1.3 | 6.8 | 5.6 | 5.9 | 9.4 | 8.4 | 9.8 | 3.2 | 6.5 |
| EBIT | |||||||||
| Primary Healthcare | 6.8 | 8.1 | 10.1 | 11.6 | 9.2 | 9.6 | 10.0 | 8.2 | 9.8 |
| Medical Laboratory and Dental Equipment & Supplies | 0.3 | 1.8 | -1.0 | 0.2 | 1.5 | 7.2 | 11.1 | 2.5 | 3.1 |
Key highlights
- Revenue for core dental business declined 2% y-o-y and 11% q-o-q due to decrease in patient visits and manpower (dentists and nurses) from COVID-19, partially offset by revenue contribution from new clinics
- Revenue for medical laboratory and dental equipment & supplies rose by 80% y-o-y as there was only around one month of COVID-19 testing contribution in 1Q21 whereas there was a full quarter of contribution in 1Q22
- There was a one-off gain of c.S$4m on the disposal of Aidite in 1Q21, so PATMI would have increased by 26% y-o-y to S$6.5m in 1Q22 from S$5.2m in 1Q21 excluding other gains or losses
- No of dental clinics in Singapore: 99 (as at 31 Mar 2022) vs 97 (as at 31 Dec 2021) and no of dental clinics in Malaysia: 41 (as at 31 Mar 2022) vs 38 (as at 31 Dec 2021); a slightly slow start compared to our 15 new clinics a year projection and management’s guidance of 20 new clinics a year projection in Singapore but locations have been identified to open 6 new clinics in the subsequent quarters
1Q22 revenue of S$38.6m makes up c.18% of our FY22F estimate while 1Q22 PATMI makes up c.20% of our FY22F estimate. We will be watching the ramp up of the new clinics and its earnings contribution. Maintain BUY and TP of S$0.72.