My projected minimum guaranteed yearly net profit of SingMedical going forward (at least 5 years):
(1) Ciputra Eye Indonesia: $60,000.
(2) Astra Women Clinic: $4,615.000.
(3) Cancer Centre: $2,400.000.
(4) Kids Clinic: $2,300.000.
(5) Baby & Children Specialist Clinic: $1,000.000.
(6) Pheniks: $500,000.
------------------------------------------------------------------------------------------------- Total: $10,875,000.
Below might have some contributions going forward:
(1) CHA (Vietnam & Australia market).
(2) Novena Radiology & Lifescan Imaging.
(3) New dental clinics.
What am i buying into SingMedical?
(1) SingMedical aims to be a Medical Disruptor in medical industry, especially in Singapore:
- to provide one stop solution for women & children's segment.
- to bring down the cost since they want to have centralised and owned imaging centres.
- to have tele-medicine platform that both local and patients
across the region will use to consult with their specialists throughout their treatment cycle.
(2) They are in the women & children's segment which is one of the biggest market in medical industry.
(3) Most of their doctors/specialists who joined them through acquisition, have some shares in SingMedical.
(4) SingMedical wants to grow through "acquire & grow aggressively" strategy.
(5) They have a wide pool of medical specialists network.
(6) My purchase price of 43.71cts per share, market valution is about 210mil.
With a minimum guaranteed yearly net profit of $10,875,000, PE is about 19.3X.
1H2018 net profit = $6,827,000. With straight line projection, FY2018 net profit will be $13,6mil, FY2018 PE will be about 15X. Medical industry averagely has PE of above 20X.
1H2018 net profit = $6,827,000. With straight line projection, FY2018 net profit will be $13,6mil, FY2018 PE will be about 15X. Medical industry averagely has PE of above 20X.
