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do you mind sharing what report please? thanks!
flyersummer ( Date: 05-Nov-2016 12:46) Posted:
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Report coming soon. Don't know is it good or bad.. :)
I think can buy a bit la
Going back to .425. Sigh...
I did load up of course. It' s quite a safe bet.
According to my doctor friend, their friends in the O& G circle loaded up quite a lot as they know Singmed will be doing a number of accretive acquisitions that will boost the bottom line. Very similar to what Q& M have done to blast the stock to $1.
flyersummer ( Date: 01-Nov-2016 19:46) Posted:
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Stitching up a broken SMG
01 Nov 2016 09:00
By ANITA GABRIEL
THE remarkable restoration of once ailing Singapore Medical Group (SMG), listed on Singapore' s Catalist, may well have been guided by Kintsugi, the Japanese art of mending broken pottery that, at its core, appreciates beauty in things broken.
The group was " haemorrhaging" and " very broken" in 2013 when its new owners - plus then newly-installed chief executive Beng Teck Liang - stitched together a three-year plan to mend the business.
" SMG was very broken at that point - things were so bad, morale was low and doctors were leaving. But it had good bones . . . it just needed more meat," says the doctor-turned-techie -turned-businessman in an interview with The Business Times.
The dicey gamble began with a plan hatched during a European ski sojourn over Christmas 2012 between Dr Beng and pal Tony Tan Choon Keat, founder of Singapore' s Parkway Holdings. The plan was mooted by another friend, Ho Choon Hou, co-founder of Cordlife Group, after he got wind that SMG was on the block.
The trio had to wait a while as Q& M Dental Group had moved in on SMG first and fortunately for them, the deal went belly up. They would eventually emerge as SMG' s major owners, with Dr Beng taking the helm at the firm and Mr Tan as chairman, in December 2013.
Foremost on the agenda to rehabilitate SMG was to slash cost, " cut the fat" , rid itself of the empty clinics, hire more doctors and arm itself with a targeted branding and marketing plan on social media platforms to attract the right clientele and bump up patient load, chiefly in the ophthalmology, cancer and women' s wellness spaces.
" I was a doctor-hiring machine . . . 15 doctors in three years," Dr Beng chuckles. He has good reason to be jolly. Everybody loves a rosy story and the market has been lapping up the healthcare specialist' s turnaround pitch since it reported a net profit of S$630,000 for the first half ended June versus a S$240,000 loss a year ago, setting the stage for, true to plan, a profitable 2016.
" There was no certainty of a turnaround (then). There was an element of rolling the dice but we knew that if we held it together, given its good base, we could do it," said Dr Beng.
Along the way, with the precision of a skilled surgeon, SMG would pick up even more chipped businesses. Last year, it carved out a 38.1 per cent stake for itself in Lifescan, a loss-making diagnostics imaging firm, and thereafter scooped up two other radiology businesses for just under S$3 million.
Not too long after the bleeding stopped at Lifescan, aided by the synergies with the group' s suite of medical services, SMG would end up with all of the diagnostics imaging firm, whose business is now being touted as the group' s next engine of growth.
But it was in mid-October that the healthcare provider, largely focused on Singapore, would get its big break in the form of a S$60 million acquisition of a chain of obstetrics & gynaecology (O& G) clinics in a cash plus share deal. This particular asset - the Astra Women' s Specialists that comprises six clinics and five doctors - was far from broken and comes with a profit guarantee of at least S$4.6 million a year for the next five years.
There' s a simple - and strategic - rationale for courting the high-margin business of women' s care. " O& G is very much a domestic business. Because of that, even if the economy is slowing down, there are still going to be births . . . women issues," he said.
DBS Group Research says this deal plus the acquisition of the remaining stake in Lifescan could effectively triple its earnings estimates for FY2017 to S$7.3 million. A key risk, however, is SMG' s ability to motivate and retain the doctors once the profit guarantees and six-year service agreements expire.
" It' s a challenge dealing with doctors," admits Dr Beng, referring to the need to keep them motivated given their personalities and " ego" .
That' s not to say it hasn' t found an effective way to do that. RHB Research points out that its move to tweak doctors' remuneration to a more variable component based on clinic revenue has attracted top notch specialists and raised the retention rate of revenue-generating performing specialists.
The Astra acquisition is visible proof of SMG' s improving dynamics. " We are healthy now and our shares are worth more, so we can go out and buy good businesses and turn them into excellent ones. We can do this by creating more synergies with existing businesses to drive margins and profit and even to expand to the region" , he said.
By that, he means Malaysia, Indonesia and Vietnam. " As a young, growing company, we have to grow to get out there to the regional markets. At some point of time, the (private sector) business will dry up (here)."
Quite clearly, SMG, possibly emboldened by its improving digits, is not done with buying.
" We havent finished yet. You will see us do a series of acquisitions - and they will be strategically timed," said Dr Beng.
Towards this end, the group also has the option to grow in its other " developmental areas" including aesthetics and dermatology and dental.
" There is no advantage to being too focused. SMG has several different areas to grow. Look at Astra. In one acquisition, we are now one of the biggest in the private sector."
But the expansion may be done via swooping in on distressed assets on the cheap with the hope of fixing it. And then, looking a tad disappointed, he said: " Broken businesses are not so easy to come by any more."
" We are healthy now and our shares are worth more, so we can go out and buy good businesses and turn them into excellent ones."
SMG chief executive Beng Teck Liang
* This article was published in The Business Times on 31 Oct 2016 and is reproduced here with permission in its entirety.
flyersummer ( Date: 01-Nov-2016 19:46) Posted:
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still got fight ltr i think
hope can go up till 50, i added some at 42 n 425, sold half at 45 n 445 this morning, balance keep for 50
support broken, going 0.45
it is over valued. Should not be more than 35 cents
Impossible to be at 43cents. Must be around 35cents. They can even do a rights cum warrant to pay their second or third tranch while continue to search for more aquisitions.
DBS Securities - 20 Oct 2016.
We have assumed that SMG will be financing the S$33m consideration of its Astra Women&rsquo s Specialist acquisition with 50%:50% debt/ equity at 4.9% interest and 5% discount to last closing price of S$0.460, respectively.
With increasing profitability from SMG&rsquo s current businesses, and near-term earnings outlook propelled by earnings accretive acquisitions, we believe a 30x FY17F
PE valuation &ndash pegged to larger peers&rsquo average &ndash is fair. Our fair value estimate works out to S$0.54 per share, which translates to a potential upside of 21% from
the current price.
-------------------------------
In short, they may do rights issue at 0.43c to fund their acquisitons.
i' m buying as an investment.. saving some bullets for their rights issue which i think should be around 35cents.
Most probably gonna hit 0.40. Think those doctors are not going to push the price. :)
I did.
So did you Long this stock to support?
pool100 ( Date: 01-Nov-2016 15:48) Posted:
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Nowadays doctors are good businessmen. It' s a fact of life.
Anw the price target was from the word on the ground. My source is a doctor himself within the O& G circle. Let' s see if the BBs will push at the right time.
How c ome you said SG Medical many doctors play shares now har
Scare scare leh if going there treatment ....(I think only)
pool100 ( Date: 31-Oct-2016 13:00) Posted:
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The 2 analysts offering 12 month price targets for Singapore Medical Group Ltd have a median target of 0.585, with a high estimate of 0.63 and a low estimate of 0.54. The median estimate represents a 32.95% increase from the last price of 0.44.
Syndicate manipulation. Just like cityneon.