SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

Scotts Miracle-Gro Co Cl A / Equity Bottom-Up

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2020-05/SMG-CEO.jpg' alt='SMG-CEO' />
 </figure>
 <div class='content-caption'>SMG-CEO</div>
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For medical entrepreneur Dr Beng Teck Liang, taking the road less travelled nearly two decades ago has made a difference - and a serendipitous one at that. 
The scion of an urologist, Beng began his career as a Medical Officer with Singapore's Ministry of Health in 1996, after graduating from the UK's University of Manchester Medical School. 
"Although I was trained as a doctor, I wanted something more, so I decided to take a different path from my peers, and move from medicine to business," said the Chief Executive Officer of SGX-listed healthcare services provider Singapore Medical Group Ltd (SMG). 
So he retooled himself with a Master's in Business Administration from the University of Chicago's Booth School of Business and a General Management Programme from Harvard Business School. 
After spending the next decade managing multi-billion dollar businesses in information technology and healthcare across Asia Pacific for multinational corporations Hewlett-Packard and General Electric, Beng was ready once again to steer in a new direction. 
"I wanted to build something for myself. And when my partners and I saw the opportunity with SMG at that time, we decided to go for it," he recalled. "We launched a takeover and general offer for the company in 2013, and the rest is, undoubtedly, a beautiful history." 
However, the milestones that SMG achieved in the succeeding seven years did not come easy - hard decisions and sleepless nights were inevitable. 
"SMG had seen better days - its reputation was marred by controversy, business was shrinking, and we were months away from going broke. The stakes were really high at the time," Beng recalled. 
"We had to reorganise teams, cut costs, retrench or fire staff, before we could grow again. During the first year, I was constantly asking myself, What did I get myself into? Am I really going to make this work?" 
Determination and discipline, as well as biting not one, but several bullets, eventually yielded results. "We managed to turn around, slowly but surely, and looking back now, there's a tremendous sense of satisfaction," he added. 
And the proof, as they say, is in the pudding: For the year ended 31 December 2019, SMG reported a 11.3% year-over-year jump in revenue to a record S$94.7 million, driven by growth across all business segments. 
Operating cash flows rose to S$25.7 million for the year from S$16.8 million in FY2018. 
Today, SMG has a market capitalisation of more than S$120 million, up six-fold from its value of about S$20 million before the takeover. 
Incorporated in 2005 and listed on Singapore Exchange since 2009, SMG is a private specialist healthcare provider, with a comprehensive range of multidisciplinary specialties and an extensive network of Specialist and Associate doctors in clinics across Singapore. 
SMG's practices can be found in both central and suburban locations, including Paragon Medical Centre, Mount Elizabeth Medical Centre, Gleneagles Medical Centre, Mount Alvernia Medical Centre, as well as Bishan, Bedok, Toa Payoh and Punggol. Its specialties include Aesthetics, Cardiology, Dentistry, Medical Oncology, Obstetrics &amp; Gynaecology, Paediatrics, as well as Plastic and Reconstruction Surgery. Unswerving Focus 
Right from the start, Beng's vision for SMG was crystal-clear: Export the Singapore brand of healthcare - which is well-loved and well-respected in the region - beyond domestic shores. 
"Apart from the biggest players in this space, like Parkway Pantai and Raffles Medical Group, there are no small and medium companies who have a significant pan-Asian presence." 
SMG aims to change that. Today, it has an expanding footprint in Indonesia, a network of clinics in Vietnam, and a robust in-vitro fertilisation (IVF) business in Australia. "We were ahead of our peers in terms of taking that leap and targeting the markets, which are traditional sources of medical tourists in the region," Beng said. 
"Singapore's share of the region's medical tourism pie has been declining - we knew it would end at some point - so our goal was to bring the best-quality healthcare over to these countries. And I think we have made a lot of progress in achieving that." 
Apart from its regional footprint, the Group has also differentiated itself from competitors through its diversification strategy. "Our specialties cut across five verticals - cancer, aesthetics, paediatrics, diagnostics, as well as obstetrics and gynaecology - and we're a significant player in each vertical." 
SMG has also established a wide network of clinics across the city-state - of its 36 clinics, more than two-thirds are in the heartlands. It is incubating other businesses, while some potential verticals, like dental and ophthamology, have yet to grow to a significant size, Beng added. 
In partnership with South Korean healthcare group CHA Health Systems, SMG will actively pursue projects in Vietnam, Singapore, Oceania and other key Pacific Rim markets to address burgeoning demand for fertility services, as the region's birth rates continue to decline. 
The Group will also leverage CHA's expertise in anti-ageing care, as well as Korea's dermatology and aesthetics know-how, to boost its lead in various specialties, including oncology. 
"The CHA-SMG partnership is expected to lay the foundation for Asia-Pacific's first dedicated platform for comprehensive wellness care, spanning the anti-ageing, beauty and preventive care spectrums," he noted. 
Last year, an international unit of CHA invested S$50 million in SMG, raising its stake to 24.04% and becoming the Group's controlling shareholder. Silver Lining 
These days, what keeps the 48-year-old awake in the wee hours is none other than the COVID-19 outbreak. "This virtual enemy has complicated our previously simple growth strategy, which revolved around how fast we could expand, which markets to venture into, and which partners we should bring on board," he said. 
Lockdowns across the region have prevented ASEAN patients from carrying out their normal clinic visits. "COVID-19 will definitely impact us - about 20% to 30% of our business comes from ASEAN." 
Thankfully, there is a silver lining. "We unveiled our telehealth business at the beginning of last year, and are starting to reap the benefits of that," he noted. Patients can seek specialist care via tele-consultation through SMG's HiDoc platform, which is easily accessed via a mobile app or website. 
"We see huge opportunities in this space as medical tourism grinds to a halt from the pandemic." 
Looking back, Beng attributes SMG's success to key decisions made seven years ago, one of them being a "Buy and Grow" strategy. "Acquisitions helped us scale up and provided a catalyst for growth. Our verticals doubled or tripled in size after we came across opportunities to acquire clinics, and acted quickly," he said. 
"But we've never rested on our laurels - we're always mindful that we still need to maintain organic growth within our networks by opening new clinics and adding specialists." 
Between 2015 and 2019, SMG added more than 20 specialists to its fold, reflecting an 85% increase to 48 from 26. The pool has been expanding every year, largely through acquisitions of medical practices and the hiring of specialists from the public healthcare sector. 
At the end of the day, ushering SMG into its next phase of growth - and on the global stage, no less - is what keeps this father of two boys, aged 12 and 15, going. 
What's exciting is the fact that the Group has the opportunity to change how healthcare is perceived and delivered, both in this region and beyond, said Beng. 
"We're one of the biggest movers and shakers in the healthcare space now, because of the track record we've established over the last seven years," he pointed out. 
"SMG is part of a global collaborative platform that's growing, not just in Southeast Asia and the South Pacific, but in North Asia, and also further afield in the US and elsewhere." Singapore Medical Group Ltd 
Incorporated in 2005 and listed on SGX since 2009, Singapore Medical Group (SMG) is a private specialist healthcare provider with a comprehensive range of multidisciplinary specialties, and an extensive network of Specialist and Associate doctors located in clinics across Singapore. 
SMG's practices can be found at Paragon Medical Centre, Mount Elizabeth Medical Centre, Novena Medical Center, OUE Downtown Gallery, Gleneagles Medical Centre, Farrer Park Medical Centre@Connexion, and Mount Alvernia Medical Centre. Suburban locations include Bishan, Bedok, Toa Payoh and Punggol. Its specialties include Aesthetics, Cardiology, Dentistry, Medical Oncology, Obstetrics &amp; Gynaecology, Paediatrics, as well as Plastic and Reconstruction Surgery. 
The company website is: <a href="http://edm.sgx.com/a/hBetL0iB86%24MfB91z9HAAPJbdH7/link8">www.smg.sg</a>.

Click <a href="http://edm.sgx.com/a/hBetL0iB86%24MfB91z9HAAPJbdH7/link9">here</a> for the company's StockFacts page. 
For the full year ended 31 December 2019 financial results, click <a href="http://edm.sgx.com/a/hBetL0iB86%24MfB91z9HAAPJbdH7/link10">here</a>.
</body></html>


      
    
    SMG-CEO


For medical entrepreneur Dr Beng Teck Liang, taking the road less travelled nearly two decades ago has made a difference - and a serendipitous one at that.  
The scion of an urologist, Beng began his career as a Medical Officer with Singapore's Ministry of Health in 1996, after graduating from the UK's University of Manchester Medical School.  
"Although I was trained as a doctor, I wanted something more, so I decided to take a different path from my peers, and move from medicine to business," said the Chief Executive Officer of SGX-listed healthcare services provider Singapore Medical Group Ltd (SMG).  
So he retooled himself with a Master's in Business Administration from the University of Chicago's Booth School of Business and a General Management Programme from Harvard Business School.  
After spending the next decade managing multi-billion dollar businesses in information technology and healthcare across Asia Pacific for multinational corporations Hewlett-Packard and General Electric, Beng was ready once again to steer in a new direction.  
"I wanted to build something for myself. And when my partners and I saw the opportunity with SMG at that time, we decided to go for it," he recalled. "We launched a takeover and general offer for the company in 2013, and the rest is, undoubtedly, a beautiful history."  
However, the milestones that SMG achieved in the succeeding seven years did not come easy - hard decisions and sleepless nights were inevitable.  
"SMG had seen better days - its reputation was marred by controversy, business was shrinking, and we were months away from going broke. The stakes were really high at the time," Beng recalled.  
"We had to reorganise teams, cut costs, retrench or fire staff, before we could grow again. During the first year, I was constantly asking myself, What did I get myself into? Am I really going to make this work?"  
Determination and discipline, as well as biting not one, but several bullets, eventually yielded results. "We managed to turn around, slowly but surely, and looking back now, there's a tremendous sense of satisfaction," he added.  
And the proof, as they say, is in the pudding: For the year ended 31 December 2019, SMG reported a 11.3% year-over-year jump in revenue to a record S$94.7 million, driven by growth across all business segments. 
Operating cash flows rose to S$25.7 million for the year from S$16.8 million in FY2018.  
Today, SMG has a market capitalisation of more than S$120 million, up six-fold from its value of about S$20 million before the takeover.  
Incorporated in 2005 and listed on Singapore Exchange since 2009, SMG is a private specialist healthcare provider, with a comprehensive range of multidisciplinary specialties and an extensive network of Specialist and Associate doctors in clinics across Singapore.  
SMG's practices can be found in both central and suburban locations, including Paragon Medical Centre, Mount Elizabeth Medical Centre, Gleneagles Medical Centre, Mount Alvernia Medical Centre, as well as Bishan, Bedok, Toa Payoh and Punggol. Its specialties include Aesthetics, Cardiology, Dentistry, Medical Oncology, Obstetrics &amp; Gynaecology, Paediatrics, as well as Plastic and Reconstruction Surgery.  Unswerving Focus  
Right from the start, Beng's vision for SMG was crystal-clear: Export the Singapore brand of healthcare - which is well-loved and well-respected in the region - beyond domestic shores.  
"Apart from the biggest players in this space, like Parkway Pantai and Raffles Medical Group, there are no small and medium companies who have a significant pan-Asian presence."  
SMG aims to change that. Today, it has an expanding footprint in Indonesia, a network of clinics in Vietnam, and a robust in-vitro fertilisation (IVF) business in Australia. "We were ahead of our peers in terms of taking that leap and targeting the markets, which are traditional sources of medical tourists in the region," Beng said.  
"Singapore's share of the region's medical tourism pie has been declining - we knew it would end at some point - so our goal was to bring the best-quality healthcare over to these countries. And I think we have made a lot of progress in achieving that."  
Apart from its regional footprint, the Group has also differentiated itself from competitors through its diversification strategy. "Our specialties cut across five verticals - cancer, aesthetics, paediatrics, diagnostics, as well as obstetrics and gynaecology - and we're a significant player in each vertical."  
SMG has also established a wide network of clinics across the city-state - of its 36 clinics, more than two-thirds are in the heartlands. It is incubating other businesses, while some potential verticals, like dental and ophthamology, have yet to grow to a significant size, Beng added.  
In partnership with South Korean healthcare group CHA Health Systems, SMG will actively pursue projects in Vietnam, Singapore, Oceania and other key Pacific Rim markets to address burgeoning demand for fertility services, as the region's birth rates continue to decline.  
The Group will also leverage CHA's expertise in anti-ageing care, as well as Korea's dermatology and aesthetics know-how, to boost its lead in various specialties, including oncology.  
"The CHA-SMG partnership is expected to lay the foundation for Asia-Pacific's first dedicated platform for comprehensive wellness care, spanning the anti-ageing, beauty and preventive care spectrums," he noted.  
Last year, an international unit of CHA invested S$50 million in SMG, raising its stake to 24.04% and becoming the Group's controlling shareholder.  Silver Lining  
These days, what keeps the 48-year-old awake in the wee hours is none other than the COVID-19 outbreak. "This virtual enemy has complicated our previously simple growth strategy, which revolved around how fast we could expand, which markets to venture into, and which partners we should bring on board," he said.  
Lockdowns across the region have prevented ASEAN patients from carrying out their normal clinic visits. "COVID-19 will definitely impact us - about 20% to 30% of our business comes from ASEAN."  
Thankfully, there is a silver lining. "We unveiled our telehealth business at the beginning of last year, and are starting to reap the benefits of that," he noted. Patients can seek specialist care via tele-consultation through SMG's HiDoc platform, which is easily accessed via a mobile app or website.  
"We see huge opportunities in this space as medical tourism grinds to a halt from the pandemic."  
Looking back, Beng attributes SMG's success to key decisions made seven years ago, one of them being a "Buy and Grow" strategy. "Acquisitions helped us scale up and provided a catalyst for growth. Our verticals doubled or tripled in size after we came across opportunities to acquire clinics, and acted quickly," he said.  
"But we've never rested on our laurels - we're always mindful that we still need to maintain organic growth within our networks by opening new clinics and adding specialists."  
Between 2015 and 2019, SMG added more than 20 specialists to its fold, reflecting an 85% increase to 48 from 26. The pool has been expanding every year, largely through acquisitions of medical practices and the hiring of specialists from the public healthcare sector.  
At the end of the day, ushering SMG into its next phase of growth - and on the global stage, no less - is what keeps this father of two boys, aged 12 and 15, going.  
What's exciting is the fact that the Group has the opportunity to change how healthcare is perceived and delivered, both in this region and beyond, said Beng.  
"We're one of the biggest movers and shakers in the healthcare space now, because of the track record we've established over the last seven years," he pointed out.  
"SMG is part of a global collaborative platform that's growing, not just in Southeast Asia and the South Pacific, but in North Asia, and also further afield in the US and elsewhere."  Singapore Medical Group Ltd  
Incorporated in 2005 and listed on SGX since 2009, Singapore Medical Group (SMG) is a private specialist healthcare provider with a comprehensive range of multidisciplinary specialties, and an extensive network of Specialist and Associate doctors located in clinics across Singapore.  
SMG's practices can be found at Paragon Medical Centre, Mount Elizabeth Medical Centre, Novena Medical Center, OUE Downtown Gallery, Gleneagles Medical Centre, Farrer Park Medical Centre@Connexion, and Mount Alvernia Medical Centre. Suburban locations include Bishan, Bedok, Toa Payoh and Punggol. Its specialties include Aesthetics, Cardiology, Dentistry, Medical Oncology, Obstetrics &amp; Gynaecology, Paediatrics, as well as Plastic and Reconstruction Surgery.  
The company website is: www.smg.sg.

Click here for the company's StockFacts page.  
For the full year ended 31 December 2019 financial results, click here.



Singapore Medical Group Eyes Global Stage

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

Bumrungrad Hospital Pub Co / Event-Driven

<a href="https://www.smartkarma.com/entities/bumrungrad-hospital-pub-co" target="_blank" data-smartkarma-citation="entities:883:1" rel="noopener">Bumrungrad Hospital Pub Co (BH TB)</a> is one of the leading healthcare providers in Thailand and the Southeast Asian region. On 26 February, BH received an unsolicited voluntary tender offer from <a href="https://www.smartkarma.com/entities/bangkok-dusit-med-service" target="_blank" data-smartkarma-citation="entities:875:1" rel="noopener">Bangkok Dusit Med Service (BDMS TB)</a>, its largest shareholder. The tender offer is at THB125 cash per share or a higher price of not more than 20% of the offering price. The final tender price will be announced after the four conditions precedent is met or waived. <div class="content-highlight">Crucially, the launch of a tender offer at a modest premium is a sensible way to test if the further acquisition of shares would pass the scrutiny of the Thai merger control provisions, in our view. The tender offer is intended to shake out the marginal holder rather than have a broad-based appeal. Consequently barring a market rally, we don’t think that BDMS has much incentive to materially increase its tender price from its opening gambit. </div>

Bumrungrad Hospital Pub Co (BH TB) is one of the leading healthcare providers in Thailand and the Southeast Asian region. On 26 February, BH received an unsolicited voluntary tender offer from Bangkok Dusit Med Service (BDMS TB), its largest shareholder. The tender offer is at THB125 cash per share or a higher price of not more than 20% of the offering price. The final tender price will be announced after the four conditions precedent is met or waived. Crucially, the launch of a tender offer at a modest premium is a sensible way to test if the further acquisition of shares would pass the scrutiny of the Thai merger control provisions, in our view. The tender offer is intended to shake out the marginal holder rather than have a broad-based appeal. Consequently barring a market rally, we don’t think that BDMS has much incentive to materially increase its tender price from its opening gambit. 

Bumrungrad Hospital’s Tender Offer from Bangkok Dusit

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<ul>
<li>
Since the end of 2019, the Health Sector has been the second strongest segment of the global stock market, closely following the performance of the Tech Sector. Health Stocks make up approximately 10 per cent of global market capitalisation. 
	 </li>
	<li>
Singapore’s 10 most traded Health Stocks in the 2020 year to 11 Feb averaged S$26 million a day in combined turnover, while generating 13% median gains and average gains of 36%. The same 10 stocks averaged S$7 million daily turnover and a decline of 1% in 2019. 
	 </li>
	<li>The three most traded Singapore healthcare-related stocks in the 2020 year to 11 Feb, include Medtecs Intl, First REIT &amp; UG Healthcare. Medtecs Intl and UG Healthcare have also been amongst the strongest performers of Singapore’s health care stocks for the period. </li>
</ul>
 

Healthcare stocks across Asia Pacific have begun 2020 on a firm defensive note with the caution and concerns on the outbreak of the Covid-19 Coronavirus in China.

There are between 1,500 and 2,000 healthcare-related stocks listed across the Asia Pacific. These stocks have generated median gains of 3%, with an average return of 8% for the 2020 year through to 11 February. Globally, the Healthcare Sector has been the second best performer in early 2020, closely following the returns of the Technology Sector, whilst the Energy Sector was been the least performer.

In Singapore, the Healthcare Sector, as represented by the iEdge SG All Healthcare Index, has also generated an 8% total return in the 2020 year through to 11 February. The 10 most traded Healthcare-related stocks ranked by turnover in the 2020 year through to 11 February, which are also a part of the iEdge SG All Healthcare Index, are tabled below.

<table class="table table-striped"><tbody>
<tr>
<td>
			Stock
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap S$M
			</td>
			<td>
			Total Return 2020 YTD %
			</td>
			<td>
			Total Return 2019 %
			</td>
			<td>
			30 Day Ann Volatility %
			</td>
			<td>
			Biggest Revenue source in Most Recent Annual Report
			</td>
			<td>
			P/E
			</td>
			<td>
			Average Daily Turnover S$M
			</td>
		</tr>
<tr>
<td>
			Medtecs Intl
			</td>
			<td>
			546
			</td>
			<td>
			60
			</td>
			<td>
			197
			</td>
			<td>
			37
			</td>
			<td>
			325
			</td>
			<td>
			Manufacturing
			</td>
			<td>
			47
			</td>
			<td>
			12.13
			</td>
		</tr>
<tr>
<td>
			First REIT
			</td>
			<td>
			AW9U
			</td>
			<td>
			796
			</td>
			<td>
			2
			</td>
			<td>
			10
			</td>
			<td>
			11
			</td>
			<td>Indonesia Properties</td>
			<td>
			17
			</td>
			<td>
			2.54
			</td>
		</tr>
<tr>
<td>
			UG Healthcare
			</td>
			<td>
			41A
			</td>
			<td>
			54
			</td>
			<td>
			96
			</td>
			<td>
			-34
			</td>
			<td>
			305
			</td>
			<td>
			Latex Examination Gloves
			</td>
			<td>
			31
			</td>
			<td>
			2.22
			</td>
		</tr>
<tr>
<td>
			Raffles Medical
			</td>
			<td>
			BSL
			</td>
			<td>
			1,883
			</td>
			<td>
			3
			</td>
			<td>
			-7
			</td>
			<td>
			25
			</td>
			<td>
			Hospital Services
			</td>
			<td>
			29
			</td>
			<td>
			2.19
			</td>
		</tr>
<tr>
<td>
			ParkwayLife REIT
			</td>
			<td>
			C2PU
			</td>
			<td>
			2,172
			</td>
			<td>
			9
			</td>
			<td>
			32
			</td>
			<td>
			21
			</td>
			<td>
			Healthcare Property
			</td>
			<td>
			14
			</td>
			<td>
			1.44
			</td>
		</tr>
<tr>
<td>
			Clearbridge
			</td>
			<td>
			1H3
			</td>
			<td>
			96
			</td>
			<td>
			20
			</td>
			<td>
			-17
			</td>
			<td>
			49
			</td>
			<td>
			Laboratory testing
			</td>
			<td>
			N/A
			</td>
			<td>
			1.33
			</td>
		</tr>
<tr>
<td>
			Riverstone
			</td>
			<td>
			AP4
			</td>
			<td>
			800
			</td>
			<td>
			17
			</td>
			<td>
			-17
			</td>
			<td>
			70
			</td>
			<td>
			Gloves
			</td>
			<td>
			18
			</td>
			<td>
			1.29
			</td>
		</tr>
<tr>
<td>
			Thomson Medical
			</td>
			<td>
			A50
			</td>
			<td>
			1,586
			</td>
			<td>
			-6
			</td>
			<td>
			-12
			</td>
			<td>
			31
			</td>
			<td>
			Hospital Ops &amp; Ancillary Serv.
			</td>
			<td>
			N/A
			</td>
			<td>
			1.06
			</td>
		</tr>
<tr>
<td>
			Healthway Med
			</td>
			<td>
			5NG
			</td>
			<td>
			149
			</td>
			<td>
			27
			</td>
			<td>
			-19
			</td>
			<td>
			152
			</td>
			<td>
			Primary Healthcare
			</td>
			<td>
			N/A
			</td>
			<td>
			0.96
			</td>
		</tr>
<tr>
<td>
			Haw Par
			</td>
			<td>
			H02
			</td>
			<td>
			2,708
			</td>
			<td>
			-4
			</td>
			<td>
			15
			</td>
			<td>
			11
			</td>
			<td>
			Healthcare Products
			</td>
			<td>
			14
			</td>
			<td>
			0.65
			</td>
		</tr>
<tr>
<td>
			Median
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			13.0
			</td>
			<td>
			-9.4
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			36.2
			</td>
			<td>
			-1.2
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
 Source: SGX StockFacts, Thomson Reuters, Bloomberg (Data as of 12 February 2020), note First REIT and ParkwayLife REIT total returns include dividend distributions.

Of the 10 stocks tabled above, the three stocks that generated the strongest volatility-adjusted returns in 2020 through to 11 February included Medtecs International Corporation, ParkwayLife REIT and Clearbridge Health.

The 10 most traded healthcare stocks for the 2020 year through to 11 February have seen combined turnover of S$26 million with S$35 million of net retail inflows. The average daily turnover for these 10 stocks is up close to threefold, from S$7 million in 2019. Four of the 10 stocks, Medtecs International Corporation, UG Healthcare Corporation, Clearbridge Health and Healthway Medical Group are listed on the Catalist board.

The 10 stocks tabled above also maintain valuations in-line with regional peers. Across Asia Pacific, the median Price-to-Earnings (P/E) ratio for the 70% of Healthcare stocks that maintained positive earnings is 24x. Similarly, the seven of the 10 stocks tabled above with P/E ratios average a ratio of 23x.

Top Glove Corporation Berhad, which has averaged S$522k in daily turnover in the 2020 year to date, was the next most traded Healthcare stock outside of the 10 stocks tabled above. The leading manufacturer of disposable rubber gloves has generated a 24% price gain over the period, following on from a decline in total return of 14% in 2019. IHH Healthcare Berhad by comparison has averaged a 3% gain in the early 2020 year, following on from a 4% total return in 2019.

First REIT and ParkwayLife REIT recently reported their FY19 results. ParkwayLife REIT (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/OZTCI81ZT0ZMHWWQ/bc081da5e9e99c11a7ee6169e2505f45ed0ffaa7423acf507bb8dc83efd86c22">here</a>) reported a 2.5% increase in its FY19 distribution per unit (“DPU”), whilst First REIT (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/OEX50V657GW5PKXI/61088071aa82e4bc36bb985ead41245ad4c3f3b6feab5029bab769da04bafab1">here</a>) maintain the same DPU in FY19 as FY18. ParkwayLife REIT has a portfolio of 53 quality healthcare and healthcare-related properties in Singapore, Japan and Malaysia, while First REIT’s portfolio consists of 20 properties located in Indonesia, Singapore and South Korea.
</body></html>





Since the end of 2019, the Health Sector has been the second strongest segment of the global stock market, closely following the performance of the Tech Sector. Health Stocks make up approximately 10 per cent of global market capitalisation.  
	 
	
Singapore’s 10 most traded Health Stocks in the 2020 year to 11 Feb averaged S$26 million a day in combined turnover, while generating 13% median gains and average gains of 36%. The same 10 stocks averaged S$7 million daily turnover and a decline of 1% in 2019.  
	 
	The three most traded Singapore healthcare-related stocks in the 2020 year to 11 Feb, include Medtecs Intl, First REIT &amp; UG Healthcare. Medtecs Intl and UG Healthcare have also been amongst the strongest performers of Singapore’s health care stocks for the period. 

 

Healthcare stocks across Asia Pacific have begun 2020 on a firm defensive note with the caution and concerns on the outbreak of the Covid-19 Coronavirus in China.

There are between 1,500 and 2,000 healthcare-related stocks listed across the Asia Pacific. These stocks have generated median gains of 3%, with an average return of 8% for the 2020 year through to 11 February. Globally, the Healthcare Sector has been the second best performer in early 2020, closely following the returns of the Technology Sector, whilst the Energy Sector was been the least performer.

In Singapore, the Healthcare Sector, as represented by the iEdge SG All Healthcare Index, has also generated an 8% total return in the 2020 year through to 11 February. The 10 most traded Healthcare-related stocks ranked by turnover in the 2020 year through to 11 February, which are also a part of the iEdge SG All Healthcare Index, are tabled below.




			Stock
			
			
			SGX Code
			
			
			Market Cap S$M
			
			
			Total Return 2020 YTD %
			
			
			Total Return 2019 %
			
			
			30 Day Ann Volatility %
			
			
			Biggest Revenue source in Most Recent Annual Report
			
			
			P/E
			
			
			Average Daily Turnover S$M
			
		


			Medtecs Intl
			
			
			546
			
			
			60
			
			
			197
			
			
			37
			
			
			325
			
			
			Manufacturing
			
			
			47
			
			
			12.13
			
		


			First REIT
			
			
			AW9U
			
			
			796
			
			
			2
			
			
			10
			
			
			11
			
			Indonesia Properties
			
			17
			
			
			2.54
			
		


			UG Healthcare
			
			
			41A
			
			
			54
			
			
			96
			
			
			-34
			
			
			305
			
			
			Latex Examination Gloves
			
			
			31
			
			
			2.22
			
		


			Raffles Medical
			
			
			BSL
			
			
			1,883
			
			
			3
			
			
			-7
			
			
			25
			
			
			Hospital Services
			
			
			29
			
			
			2.19
			
		


			ParkwayLife REIT
			
			
			C2PU
			
			
			2,172
			
			
			9
			
			
			32
			
			
			21
			
			
			Healthcare Property
			
			
			14
			
			
			1.44
			
		


			Clearbridge
			
			
			1H3
			
			
			96
			
			
			20
			
			
			-17
			
			
			49
			
			
			Laboratory testing
			
			
			N/A
			
			
			1.33
			
		


			Riverstone
			
			
			AP4
			
			
			800
			
			
			17
			
			
			-17
			
			
			70
			
			
			Gloves
			
			
			18
			
			
			1.29
			
		


			Thomson Medical
			
			
			A50
			
			
			1,586
			
			
			-6
			
			
			-12
			
			
			31
			
			
			Hospital Ops &amp; Ancillary Serv.
			
			
			N/A
			
			
			1.06
			
		


			Healthway Med
			
			
			5NG
			
			
			149
			
			
			27
			
			
			-19
			
			
			152
			
			
			Primary Healthcare
			
			
			N/A
			
			
			0.96
			
		


			Haw Par
			
			
			H02
			
			
			2,708
			
			
			-4
			
			
			15
			
			
			11
			
			
			Healthcare Products
			
			
			14
			
			
			0.65
			
		


			Median
			
			
			 
			
			
			 
			
			
			13.0
			
			
			-9.4
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
		


			Average
			
			
			 
			
			
			 
			
			
			36.2
			
			
			-1.2
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
		

 Source: SGX StockFacts, Thomson Reuters, Bloomberg (Data as of 12 February 2020), note First REIT and ParkwayLife REIT total returns include dividend distributions.

Of the 10 stocks tabled above, the three stocks that generated the strongest volatility-adjusted returns in 2020 through to 11 February included Medtecs International Corporation, ParkwayLife REIT and Clearbridge Health.

The 10 most traded healthcare stocks for the 2020 year through to 11 February have seen combined turnover of S$26 million with S$35 million of net retail inflows. The average daily turnover for these 10 stocks is up close to threefold, from S$7 million in 2019. Four of the 10 stocks, Medtecs International Corporation, UG Healthcare Corporation, Clearbridge Health and Healthway Medical Group are listed on the Catalist board.

The 10 stocks tabled above also maintain valuations in-line with regional peers. Across Asia Pacific, the median Price-to-Earnings (P/E) ratio for the 70% of Healthcare stocks that maintained positive earnings is 24x. Similarly, the seven of the 10 stocks tabled above with P/E ratios average a ratio of 23x.

Top Glove Corporation Berhad, which has averaged S$522k in daily turnover in the 2020 year to date, was the next most traded Healthcare stock outside of the 10 stocks tabled above. The leading manufacturer of disposable rubber gloves has generated a 24% price gain over the period, following on from a decline in total return of 14% in 2019. IHH Healthcare Berhad by comparison has averaged a 3% gain in the early 2020 year, following on from a 4% total return in 2019.

First REIT and ParkwayLife REIT recently reported their FY19 results. ParkwayLife REIT (click here) reported a 2.5% increase in its FY19 distribution per unit (“DPU”), whilst First REIT (click here) maintain the same DPU in FY19 as FY18. ParkwayLife REIT has a portfolio of 53 quality healthcare and healthcare-related properties in Singapore, Japan and Malaysia, while First REIT’s portfolio consists of 20 properties located in Indonesia, Singapore and South Korea.



Singapore’s 10 Most Traded Healthcare Stocks in Early 2020  

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
SGX lists 18 healthcare services companies and two healthcare REITs with a combined market cap of about S$25 billion. They operate patient care services and facilities, both locally and worldwide, including laboratories, hospitals, nursing homes and clinics. 
	 </li>
	<li>
Over 2019, the five best-performing healthcare services players were: ISEC Healthcare (+48.6%), Parkway Life REIT (+31.9%), Cordlife (+23.6%), First REIT (+9.9%) and Medinex (+6.3%). The five have averaged a total return of 24.1% over the period, bringing their one-year total return to 18.2%. 
	 </li>
	<li>Singapore’s healthcare sector is poised to enjoy multi-year growth prospects, driven by the region’s accelerated ageing rates and the rise of lifestyle diseases. Investors can participate in the structural Asian healthcare theme through SGX-listed companies that are rapidly expanding into international markets to meet growing patient demand.</li>
</ul>
Singapore’s healthcare sector is typically viewed as defensive and poised to enjoy multi-year growth prospects. Drivers of Asia’s increased healthcare spending levels include accelerated ageing rates, the rise of lifestyle diseases like diabetes and hypertension, as well as growing disposable incomes.

The listed healthcare sector in Singapore, as tracked by the benchmark iEdge SG All Healthcare Index, comprises companies that operate in the segments of pharmaceuticals and biotechnology, healthcare and patient services, as well as medical equipment and supplies. SGX also lists two healthcare REITs that operate patient care facilities such as hospitals and nursing homes in Southeast and Northeast Asia.

Investors can easily participate in the structural Asian healthcare theme through SGX-listed healthcare stocks that are rapidly expanding into regional and global markets to meet growing patient demand.

 

Healthcare Services Players

There are 18 healthcare services companies and two healthcare REITs listed on SGX with a combined market capitalisation of about S$25 billion. They operate patient care services and facilities, both locally and worldwide. These facilities include laboratories, hospitals, nursing homes and clinics that offer services and treatments ranging from family medicine, dentistry, endoscopy and aesthetics to gynaecology, oncology, paediatrics, orthopaedics, ophthalmology, and even cord blood banking.

The majority of Singapore’s healthcare services providers have also pursued international expansion plans in recent years. Their operations and assets span multiple geographies outside the city-state, including markets in South and Southeast Asia, Northeast Asia, as well as Middle East and Europe.

Over 2019, the five best-performing healthcare services players were: ISEC Healthcare (+48.6%), Parkway Life REIT (+31.9%), Cordlife Group (+23.6%), First REIT (+9.9%) and Medinex Ltd (+6.3%). The five have averaged a total return of 24.1% over the period, bringing their one-year total return to 18.2%.

Note that China’s Aier Eye Hospital Group holds 56.53% of ISEC Healthcare as at the close of its mandatory general offer last month. Its bid vehicle Aier Eye International triggered the offer after buying a 35% stake in the company last August.

The table below details the 18 healthcare services stocks and two healthcare REITs on SGX, sorted by market cap.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			Total Return 2019 (%)
			</td>
			<td>
			Total Return 1Y (%)
			</td>
		</tr>
<tr>
<td>
			IHH HEALTHCARE
			</td>
			<td>
			Q0F
			</td>
			<td>
			16,144
			</td>
			<td>
			4.5
			</td>
			<td>
			-0.6
			</td>
		</tr>
<tr>
<td>
			PARKWAY LIFE REIT
			</td>
			<td>
			C2PU
			</td>
			<td>
			2,057
			</td>
			<td>
			31.9
			</td>
			<td>
			31.3
			</td>
		</tr>
<tr>
<td>
			RAFFLES MEDICAL GROUP
			</td>
			<td>
			BSL
			</td>
			<td>
			1,846
			</td>
			<td>
			-6.9
			</td>
			<td>
			-10.0
			</td>
		</tr>
<tr>
<td>
			THOMSON MEDICAL GROUP
			</td>
			<td>
			A50
			</td>
			<td>
			1,613
			</td>
			<td>
			-12.0
			</td>
			<td>
			-17.3
			</td>
		</tr>
<tr>
<td>
			FIRST REIT
			</td>
			<td>
			AW9U
			</td>
			<td>
			798
			</td>
			<td>
			9.9
			</td>
			<td>
			7.7
			</td>
		</tr>
<tr>
<td>
			TALKMED GROUP
			</td>
			<td>
			5G3
			</td>
			<td>
			677
			</td>
			<td>
			-10.7
			</td>
			<td>
			-4.3
			</td>
		</tr>
<tr>
<td>
			Q&amp;M DENTAL GROUP
			</td>
			<td>
			QC7
			</td>
			<td>
			377
			</td>
			<td>
			-2.3
			</td>
			<td>
			-1.3
			</td>
		</tr>
<tr>
<td>
			OUE LIPPO HEALTHCARE
			</td>
			<td>
			5WA
			</td>
			<td>
			258
			</td>
			<td>
			-10.8
			</td>
			<td>
			-14.7
			</td>
		</tr>
<tr>
<td>
			ISEC HEALTHCARE
			</td>
			<td>
			40T
			</td>
			<td>
			186
			</td>
			<td>
			48.6
			</td>
			<td>
			45.0
			</td>
		</tr>
<tr>
<td>
			SINGAPORE MEDICAL GROUP
			</td>
			<td>
			5OT
			</td>
			<td>
			145
			</td>
			<td>
			-25.0
			</td>
			<td>
			-28.6
			</td>
		</tr>
<tr>
<td>
			SINGAPORE O&amp;G
			</td>
			<td>
			1D8
			</td>
			<td>
			136
			</td>
			<td>
			-10.7
			</td>
			<td>
			-12.7
			</td>
		</tr>
<tr>
<td>
			HEALTHWAY MEDICAL GROUP
			</td>
			<td>
			5NG
			</td>
			<td>
			117
			</td>
			<td>
			-18.8
			</td>
			<td>
			-16.1
			</td>
		</tr>
<tr>
<td>
			CORDLIFE GROUP
			</td>
			<td>
			P8A
			</td>
			<td>
			110
			</td>
			<td>
			23.6
			</td>
			<td>
			3.4
			</td>
		</tr>
<tr>
<td>
			CLEARBRIDGE HEALTH
			</td>
			<td>
			1H3
			</td>
			<td>
			79
			</td>
			<td>
			-17.4
			</td>
			<td>
			-22.3
			</td>
		</tr>
<tr>
<td>
			HC SURGICAL SPECIALISTS
			</td>
			<td>
			1B1
			</td>
			<td>
			78
			</td>
			<td>
			-9.9
			</td>
			<td>
			-8.5
			</td>
		</tr>
<tr>
<td>
			AOXIN Q &amp; M DENTAL
			</td>
			<td>
			1D4
			</td>
			<td>
			76
			</td>
			<td>
			-19.2
			</td>
			<td>
			-13.1
			</td>
		</tr>
<tr>
<td>
			ASIAN HEALTHCARE SPECIALISTS
			</td>
			<td>
			1J3
			</td>
			<td>
			72
			</td>
			<td>
			-12.7
			</td>
			<td>
			-12.7
			</td>
		</tr>
<tr>
<td>
			ALLIANCE HEALTHCARE GROUP
			</td>
			<td>
			MIJ
			</td>
			<td>
			36
			</td>
			<td>
			-52.1
			</td>
			<td>
			0.0
			</td>
		</tr>
<tr>
<td>
			MEDINEX LTD
			</td>
			<td>
			OTX
			</td>
			<td>
			33
			</td>
			<td>
			6.3
			</td>
			<td>
			3.5
			</td>
		</tr>
<tr>
<td>
			ASIAMEDIC LTD
			</td>
			<td>
			505
			</td>
			<td>
			12
			</td>
			<td>
			-39.1
			</td>
			<td>
			-31.1
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 16 Jan 2020)

*Date range: 31 May 2019 (IPO date) to 31 Dec 2019

Robust Industry Outlook

Asia’s healthcare market is estimated to expand to more than US$2.7 trillion by 2020, according to <a href="https://economictimes.indiatimes.com/industry/miscellaneous/asian-healthcare-market-to-grow-over-2660-billion-by-2020/articleshow/61036651.cms">data</a> from Economic Times and MENA Research Partners. This is mainly due to improved access to healthcare facilities amid higher government and private investments, which in turn has boosted demand for services and products.

The Asia Pacific is also the fastest ageing region in the world, with the elderly population expected to grow by over 200 million between now and 2030, according to a <a href="https://www.marsh.com/content/dam/marsh/Documents/PDF/asia/en_asia/Advancing%20into%20the%20Golder%20Years%20-%20Cost%20of%20Healthcare%20for%20Asia%20Pacifics%20Elderly.pdf?fireglass_rsn=true">report</a> from the Marsh and McLennan Companies' Asia Pacific Research Center. This represents a 71% rise in the number of elderly in this region, compared to increases of 55% in North America and 31% in Europe over the same period.

In Singapore, annual public and private expenditure for elderly healthcare is projected to jump 10-fold to US$49 billion by 2030. Across the wider Asia-Pacific, annual elderly healthcare expenditure in 2030 will be five times the 2015 total, the report added.

Finance Minister Heng Swee Keat has estimated that Singapore’s healthcare spending will rise to S$11.7 billion in FY19 from S$10.6 billion the previous year, as the government boosts patient subsidies while expanding clinical services and capacity. Singapore’s average annual healthcare spending is also forecast to increase to almost 3% of gross domestic product (GDP) over the next decade from 2.2% currently, reflecting a gain of nearly 0.8-percentage point of GDP.
</body></html>





SGX lists 18 healthcare services companies and two healthcare REITs with a combined market cap of about S$25 billion. They operate patient care services and facilities, both locally and worldwide, including laboratories, hospitals, nursing homes and clinics. 
	 
	
Over 2019, the five best-performing healthcare services players were: ISEC Healthcare (+48.6%), Parkway Life REIT (+31.9%), Cordlife (+23.6%), First REIT (+9.9%) and Medinex (+6.3%). The five have averaged a total return of 24.1% over the period, bringing their one-year total return to 18.2%. 
	 
	Singapore’s healthcare sector is poised to enjoy multi-year growth prospects, driven by the region’s accelerated ageing rates and the rise of lifestyle diseases. Investors can participate in the structural Asian healthcare theme through SGX-listed companies that are rapidly expanding into international markets to meet growing patient demand.

Singapore’s healthcare sector is typically viewed as defensive and poised to enjoy multi-year growth prospects. Drivers of Asia’s increased healthcare spending levels include accelerated ageing rates, the rise of lifestyle diseases like diabetes and hypertension, as well as growing disposable incomes.

The listed healthcare sector in Singapore, as tracked by the benchmark iEdge SG All Healthcare Index, comprises companies that operate in the segments of pharmaceuticals and biotechnology, healthcare and patient services, as well as medical equipment and supplies. SGX also lists two healthcare REITs that operate patient care facilities such as hospitals and nursing homes in Southeast and Northeast Asia.

Investors can easily participate in the structural Asian healthcare theme through SGX-listed healthcare stocks that are rapidly expanding into regional and global markets to meet growing patient demand.

 

Healthcare Services Players

There are 18 healthcare services companies and two healthcare REITs listed on SGX with a combined market capitalisation of about S$25 billion. They operate patient care services and facilities, both locally and worldwide. These facilities include laboratories, hospitals, nursing homes and clinics that offer services and treatments ranging from family medicine, dentistry, endoscopy and aesthetics to gynaecology, oncology, paediatrics, orthopaedics, ophthalmology, and even cord blood banking.

The majority of Singapore’s healthcare services providers have also pursued international expansion plans in recent years. Their operations and assets span multiple geographies outside the city-state, including markets in South and Southeast Asia, Northeast Asia, as well as Middle East and Europe.

Over 2019, the five best-performing healthcare services players were: ISEC Healthcare (+48.6%), Parkway Life REIT (+31.9%), Cordlife Group (+23.6%), First REIT (+9.9%) and Medinex Ltd (+6.3%). The five have averaged a total return of 24.1% over the period, bringing their one-year total return to 18.2%.

Note that China’s Aier Eye Hospital Group holds 56.53% of ISEC Healthcare as at the close of its mandatory general offer last month. Its bid vehicle Aier Eye International triggered the offer after buying a 35% stake in the company last August.

The table below details the 18 healthcare services stocks and two healthcare REITs on SGX, sorted by market cap.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Total Return 2019 (%)
			
			
			Total Return 1Y (%)
			
		


			IHH HEALTHCARE
			
			
			Q0F
			
			
			16,144
			
			
			4.5
			
			
			-0.6
			
		


			PARKWAY LIFE REIT
			
			
			C2PU
			
			
			2,057
			
			
			31.9
			
			
			31.3
			
		


			RAFFLES MEDICAL GROUP
			
			
			BSL
			
			
			1,846
			
			
			-6.9
			
			
			-10.0
			
		


			THOMSON MEDICAL GROUP
			
			
			A50
			
			
			1,613
			
			
			-12.0
			
			
			-17.3
			
		


			FIRST REIT
			
			
			AW9U
			
			
			798
			
			
			9.9
			
			
			7.7
			
		


			TALKMED GROUP
			
			
			5G3
			
			
			677
			
			
			-10.7
			
			
			-4.3
			
		


			Q&amp;M DENTAL GROUP
			
			
			QC7
			
			
			377
			
			
			-2.3
			
			
			-1.3
			
		


			OUE LIPPO HEALTHCARE
			
			
			5WA
			
			
			258
			
			
			-10.8
			
			
			-14.7
			
		


			ISEC HEALTHCARE
			
			
			40T
			
			
			186
			
			
			48.6
			
			
			45.0
			
		


			SINGAPORE MEDICAL GROUP
			
			
			5OT
			
			
			145
			
			
			-25.0
			
			
			-28.6
			
		


			SINGAPORE O&amp;G
			
			
			1D8
			
			
			136
			
			
			-10.7
			
			
			-12.7
			
		


			HEALTHWAY MEDICAL GROUP
			
			
			5NG
			
			
			117
			
			
			-18.8
			
			
			-16.1
			
		


			CORDLIFE GROUP
			
			
			P8A
			
			
			110
			
			
			23.6
			
			
			3.4
			
		


			CLEARBRIDGE HEALTH
			
			
			1H3
			
			
			79
			
			
			-17.4
			
			
			-22.3
			
		


			HC SURGICAL SPECIALISTS
			
			
			1B1
			
			
			78
			
			
			-9.9
			
			
			-8.5
			
		


			AOXIN Q &amp; M DENTAL
			
			
			1D4
			
			
			76
			
			
			-19.2
			
			
			-13.1
			
		


			ASIAN HEALTHCARE SPECIALISTS
			
			
			1J3
			
			
			72
			
			
			-12.7
			
			
			-12.7
			
		


			ALLIANCE HEALTHCARE GROUP
			
			
			MIJ
			
			
			36
			
			
			-52.1
			
			
			0.0
			
		


			MEDINEX LTD
			
			
			OTX
			
			
			33
			
			
			6.3
			
			
			3.5
			
		


			ASIAMEDIC LTD
			
			
			505
			
			
			12
			
			
			-39.1
			
			
			-31.1
			
		

Source: Bloomberg &amp; StockFacts (data as of 16 Jan 2020)

*Date range: 31 May 2019 (IPO date) to 31 Dec 2019

Robust Industry Outlook

Asia’s healthcare market is estimated to expand to more than US$2.7 trillion by 2020, according to data from Economic Times and MENA Research Partners. This is mainly due to improved access to healthcare facilities amid higher government and private investments, which in turn has boosted demand for services and products.

The Asia Pacific is also the fastest ageing region in the world, with the elderly population expected to grow by over 200 million between now and 2030, according to a report from the Marsh and McLennan Companies' Asia Pacific Research Center. This represents a 71% rise in the number of elderly in this region, compared to increases of 55% in North America and 31% in Europe over the same period.

In Singapore, annual public and private expenditure for elderly healthcare is projected to jump 10-fold to US$49 billion by 2030. Across the wider Asia-Pacific, annual elderly healthcare expenditure in 2030 will be five times the 2015 total, the report added.

Finance Minister Heng Swee Keat has estimated that Singapore’s healthcare spending will rise to S$11.7 billion in FY19 from S$10.6 billion the previous year, as the government boosts patient subsidies while expanding clinical services and capacity. Singapore’s average annual healthcare spending is also forecast to increase to almost 3% of gross domestic product (GDP) over the next decade from 2.2% currently, reflecting a gain of nearly 0.8-percentage point of GDP.



Five Best-Performing Healthcare Services Stocks Returned 24% in 2019

Jinxin Fertility Group  / Equity Bottom-Up

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Corrigenda: There is an error in this insight. Please note the correction below.
Correction: In the last line of the first paragraph below, "... are currently x% above the IPO price." should read "... are currently 9% above the IPO price."
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<a href="https://www.smartkarma.com/entities/jinxin-fertility-co" target="_blank" data-smartkarma-citation="entities:28003:1" rel="noopener">Jinxin Fertility Co Ltd (1951 HK)</a> is a leading assisted reproductive service (ARS) provider in China and the US. Jinxin priced its IPO at HK$8.54 per share, the top of the indicated range of HK$7.76-8.54, raising net proceeds of HK$2,808 million ($360 million). The shares started trading today, and are currently x% above the IPO price.
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In <a href="https://www.smartkarma.com/insights/jinxin-fertility-group-ipo-valuation-reasonable-for-the-trade-offs" target="_blank" rel="noopener">our previous note</a>, we noted that our relative valuation analysis suggests that the Jinxin IPO is attractive at the proposed IPO price range. Our DCF analysis outlined in this note suggests a base-case valuation of HK$8.81, 6% below the current share price of HK$9.37. In other words, the shares are fully priced with the next catalyst likely to be the 1H19 results. Notably, both <a href="https://www.smartkarma.com/entities/viva-biotech-holdings" target="_blank" data-smartkarma-citation="entities:27850:1" rel="noopener">Viva Biotech Holdings (1873 HK)</a> ​and <a href="https://www.smartkarma.com/entities/frontage-holdings" target="_blank" data-smartkarma-citation="entities:27754:1" rel="noopener">Frontage Holdings (1521 HK)</a> ​initially traded above their IPO prices but are currently trading below their IPO prices. 
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For reference our previous notes are listed below:
<a href="https://www.smartkarma.com/insights/jinxin-fertility-group-ipo-valuation-reasonable-for-the-trade-offs" target="_blank" data-smartkarma-citation="insights:30417" rel="noopener">Jinxin Fertility Group IPO: Valuation Reasonable for the Trade-Offs</a> ​
<a href="https://www.smartkarma.com/insights/jinxin-fertility-group-ipo-4q-update-is-good-but-is-it-sustainable" target="_blank" data-smartkarma-citation="insights:30356" rel="noopener">Jinxin Fertility Group IPO: 4Q Update Is Good but Is It Sustainable?</a>
<a href="https://www.smartkarma.com/insights/jinxin-fertility-group-ipo-preview-baby-boom-or-bust" target="_blank" data-smartkarma-citation="insights:30307" rel="noopener">Jinxin Fertility Group IPO Preview: Baby Boom or Bust?</a>


Corrigenda: There is an error in this insight. Please note the correction below.
Correction: In the last line of the first paragraph below, "... are currently x% above the IPO price." should read "... are currently 9% above the IPO price."


Jinxin Fertility Co Ltd (1951 HK) is a leading assisted reproductive service (ARS) provider in China and the US. Jinxin priced its IPO at HK$8.54 per share, the top of the indicated range of HK$7.76-8.54, raising net proceeds of HK$2,808 million ($360 million). The shares started trading today, and are currently x% above the IPO price.

In our previous note, we noted that our relative valuation analysis suggests that the Jinxin IPO is attractive at the proposed IPO price range. Our DCF analysis outlined in this note suggests a base-case valuation of HK$8.81, 6% below the current share price of HK$9.37. In other words, the shares are fully priced with the next catalyst likely to be the 1H19 results. Notably, both Viva Biotech Holdings (1873 HK) ​and Frontage Holdings (1521 HK) ​initially traded above their IPO prices but are currently trading below their IPO prices. 

For reference our previous notes are listed below:
Jinxin Fertility Group IPO: Valuation Reasonable for the Trade-Offs ​
Jinxin Fertility Group IPO: 4Q Update Is Good but Is It Sustainable?
Jinxin Fertility Group IPO Preview: Baby Boom or Bust?

Jinxin Fertility Group: First-Day Trading Thoughts

Singapore

Raffles Medical Group Limited is a health care provider.  The Company operates medical clinics, imaging centers, and medical laboratories.  Raffles provides general and specialized medical, medical evacuation, medical advisory, and dental treatment services.

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Jinxin Fertility Group: First-Day Trading Thoughts

Corrigenda: There is an error in this insight. Please note the correction below. Correction: In the last line of the first paragraph below, "......

Arun George

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