ALLIANCE HEALTHCARE GROUP LIMITED is offering 175,888,352 shares for its IPO on Catalistat $0.20 per share. Market capitalization based on the offer price S$35 mil. (Figure to be final after final offer document is lodge)
The group provide managed healthcare solutions to corporations and insurance companies by establishing an extensive network of medical services providers to deliver healthcare services to the employees of corporations or, as the case may be, insured members or policyholders
of insurance companies.
Alliance Healthcare Network, comprises:
- 16 GP clinics under the “My Family Clinic” name, one GP clinic
under the “Lee Clinic Pte. Ltd.” name and five specialist clinics
which we own and operate in Singapore;
- our panel of over 1,000 medical services providers in Singapore
and Johor Bahru in Malaysia; and
- our tie-ups with various GRHs;
The group revenue increase around 14% YoY and pharmaceutical services business segment contribute approximately S$2.2 million out of S$4.4 mil increase from FY17 to FY18.
|Profit before tax||899.5||1,865.5||3,417.9|
|Profit after tax||829.9||1,742.2||3,476.7|
What I like
GP clinics are in demend and with Managed healthcare solutions, more companies and insurance will work with the group.
Wholesale pharmaceutical license issued by the Health Science Authority (HSA), which allows it to undertake the wholesale distribution of pharmaceutical products to hospitals, pharmacies and clinics in Singapore.
What I don’t like
Over heavily depending on panel treatment where payment might not come in due to closure or dispute.
Subject to healthcare laws and regulations including licensing requirements which are subject to fines or loss of license.
With the aging population, GP services will be in demand and wholesales of pharmaceutical products is profiting. P/E at 11x and NAV at 6.03 cents. Dividend yield at 2.5%. This stock is worth a punt at $0.20 a shares. CIMB is doing book building and will close on 21st May. Contact your RM if your interested for placement.