TMC Life Sciences profit surges 30.4% in first quarter

PETALING JAYA: TMC Life Sciences Bhd, which posted a 30.38% jump in its net profit for the second quarter (Q2) ended Feb 28, expects its FY19 financial performance to surpass FY18’s, driven by increased hospital occupancy rate, higher patient load and the offering of more tertiary medical services.

Group CEO Nadiah Wan said in the past year, it has added a range of tertiary medical services including haematology, rheumatology, acute stroke team with neurology, neurosurgery and neuroradiology, cardiothoracic surgery, intensive care and bariatric surgery, among others.

“In the past, perhaps we had more deliveries, more ENT (ears, nose & throat) cases, but now we’re doing more stroke, cardiac cases, some haemotology and rheumatology cases, so those are higher revenue patients which are driving the growth,” she told a media briefing today after releasing its Q2 financial results.

Group CFO Jimmy Wong said there is a consistent growth in its earnings before interest, tax, depreciation and amortisation (ebitda) margin, with its 1H19 results showing double-digit growth.

“We remain positive on our outlook for 2H. Based on our track record, normally 1H is softer and 2H will be stronger,” said Wong.

Nadiah said it remains a women and children’s-based hospital, which are its core strength, but is also looking at the areas of male’s health, women’s oncology and women’s cardiology.

Last month, its parent Thomson Medical Group Ltd signed a memorandum of understanding with US-based Brigham Health International, LLC and Dana-Farber Cancer Institute, Inc to promote the advancement of healthcare delivery, education and research with a focus on women’s health and oncology.

Meanwhile, the ongoing construction of its flagship hospital Thomson Hospital Kota Damansara is on track and expected to be completed by the end of 2020. The Thomson Iskandar Medical Hub in Johor Baru has commenced piling work and is on track for completion in Q1 2024. These two projects will add 900 beds to the current 205 beds that the group operates in Kota Damansara.

On merger and acquisition deals, Nadiah said it is working with its parent in and efforts are still underway. She emphasised that it is looking at both organic and inorganic growth.

For the second quarter ended Feb 28, the group’s net profit rose 30.38% to RM6.21 million from RM4.76 million a year ago mainly driven by resource optimisation.

Revenue soared 13.72% to RM45.16 million RM39.71 million thanks to higher patient load and complexity of cases handled.

For the six-month period, the group’s net profit grew 19.72% to RM13.28 million from RM11.09 million in the same period a year ago, while revenue increased 13.37% to RM92.32 million from RM81.44 million.

Source: The Sun Daily

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