Singapore: ISEC shines with 6% rise in Q1 profits

First quarter results have proved difficult for a couple of healthcare companies in Singapore, although ISEC Healthcare has posted a 6% rise in profits.

Women’s healthcare specialist Singapore O&G (SOG) has reported a 15.5% decline in profits to S$2.1m (US$1.5m) on revenues that rose 6.5% to 8.7m.

It was hit by higher expenses in consumables and medical supplies as well as a 19.4% increase in employee remuneration expense from the three new clinics.

“The group kicked off financial year 2019 with commendable revenue growth for our O&G, cancer-related and paediatrics segments,” said executive chairman Beh Suan Tiong. “Our paediatrics segment continued to register steady growth with increased referrals from our O&G segment and during the quarter, we continued to strengthen this segment with the addition of our fourth paediatrician.”

Over at private specialist healthcare provider Singapore Medical Group, profits fell 3% to S$3.3m on revenues that rose 12.3% to S$21.6m.

Following an internal strategic review, SMG closed its orthopaedics practice which had been in direct competition with its own imaging business. While the group did report increases in revenue across specialist verticals such as O&G and paediatrics, this growth was offset by the absence of contribution from the group’s orthopaedics practice.

RHB Invest has downgraded the group to “neutral”. Analyst Lee Cai Ling warned that near term profit growth could be hit by higher costs from SMG’s aggressive expansion plans.

But at Singapore-listed eye care service provider ISEC Healthcare, profits rose 6% to S$2.2m on revenues that rose 3% to S$9.9m.

The group said that this was “mainly attributable to increased business activities from the group’s specialised health services in both Malaysia and Singapore”.

It added that operations a ISEC Myanmat are expected to commence in the second quarter of the year.