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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/singapore-medical-group-ltd" target="_blank" data-smartkarma-citation="entities:7441:1" rel="noopener">Singapore Medical (SMG SP)</a> received a voluntary conditional offer from management (chairman, CEO, exec director). The offer is cash (S$0.37) or scrip (1 new share in the offeror per share).</li>
<li>The key condition is a 90% minimum acceptance condition. Irrevocables, which will take the scrip option, represent 51.67% of outstanding shares.</li>
<li>The offer is light, but the offeror reserves the right to reduce the acceptance condition to a lower level (above 50%). Therefore, this offer will likely turn unconditional. </li>
</ul>



Singapore Medical (SMG SP) received a voluntary conditional offer from management (chairman, CEO, exec director). The offer is cash (S$0.37) or scrip (1 new share in the offeror per share).
The key condition is a 90% minimum acceptance condition. Irrevocables, which will take the scrip option, represent 51.67% of outstanding shares.
The offer is light, but the offeror reserves the right to reduce the acceptance condition to a lower level (above 50%). Therefore, this offer will likely turn unconditional. 


Singapore Medical’s Light VGO Offer from Top Management

Smartkarma Research Team, Smartkarma

Smartkarma Research

Smartkarma Research Team

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Bottom-Up

<p>For our next Corporate Webinar, we are glad to welcome the Chief Executive Officer of <a href="https://www.smartkarma.com/entities/singapore-o-g-ltd" target="_blank" data-smartkarma-citation="entities:26976:1" rel="noopener">Singapore O&amp;G Ltd. (SOG SP)</a>, Eric Choo. </p><p>Established in 2011 and listed on SGX in June 2015, SOG is a leading healthcare service provider dedicated towards delivering premier medical services to women's and children's health and wellness at affordable prices. The Group's clinics, under its four operating segments - O&amp;G, Paediatrics, Cancer-related, and Dermatology - are strategically located throughout Singapore to provide easy access to its patients.</p><p>In this Webinar, Eric will share a short company presentation, after which he will engage in a fireside chat with Smartkarma Insight Provider, <a href="https://www.smartkarma.com/profiles/xinyao-criss-wang" target="_blank" data-smartkarma-citation="accounts:14483" rel="noopener">Xinyao (Criss) Wang</a>. This will be followed by a live Q&amp;A session.</p><h3>The Corporate Webinar will be hosted on Tuesday, 17 August 2021, 17:00 SGT</h3><div class="content-highlight"><h2><a href="https://share.hsforms.com/1H9pFZOB-RF2J00kbvMmxcw2c5gj?zoom_webinar_id=88033984045" target="_blank" rel="noopener">Register for the Webinar here</a></h2></div><p>Corporate Webinars by <a href="https://www.smartkarma.com/home/corporate-solutions/" target="_blank" rel="noopener">Smartkarma Corporate Solutions</a> feature discussions with IROs and Executives, discussing their companies, the challenges they face, and the opportunities in their sectors and markets.</p>

For our next Corporate Webinar, we are glad to welcome the Chief Executive Officer of Singapore O&amp;G Ltd. (SOG SP), Eric Choo. Established in 2011 and listed on SGX in June 2015, SOG is a leading healthcare service provider dedicated towards delivering premier medical services to women's and children's health and wellness at affordable prices. The Group's clinics, under its four operating segments - O&amp;G, Paediatrics, Cancer-related, and Dermatology - are strategically located throughout Singapore to provide easy access to its patients.In this Webinar, Eric will share a short company presentation, after which he will engage in a fireside chat with Smartkarma Insight Provider, Xinyao (Criss) Wang. This will be followed by a live Q&amp;A session.The Corporate Webinar will be hosted on Tuesday, 17 August 2021, 17:00 SGTRegister for the Webinar hereCorporate Webinars by Smartkarma Corporate Solutions feature discussions with IROs and Executives, discussing their companies, the challenges they face, and the opportunities in their sectors and markets.

Smartkarma Corporate Webinar | Singapore O&G: Nurturing Women’s and Children’s Health in Singapore

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.

<figure class="editor-figure mceNonEditable"><img src="https://api2.sgx.com/sites/default/files/2021-02/Capture_1.PNG" class="editor-image img-responsive"></figure>
<div class="content-caption">CEO of SPORE O&amp;G</div>
<p></p>
<p>A high-energy, results-focused leader, Eric Choo enjoys connecting people by stimulating their tastebuds.</p>
<p>“I can’t cook, but I appreciate good food, and I’m very adventurous with different cuisines,” the Chief Executive Officer of SGX-listed healthcare services provider Singapore O&amp;G Ltd (SOG) said with a laugh.</p>
<p>“Food has the power to forge and improve relationships, and I enjoy bringing people together over a table of food.”</p>
<p>Choo, who has spent 10 years of his career in the healthcare industry, was appointed CEO of SOG in February 2020. The 40-year-old was the Group’s former Chief Financial Officer, and one of the key executive officers during its initial public offering (IPO) in 2015. During his first tenure with SOG between 2014 and 2018, he was also involved in the Group’s operational and administrative matters.</p>
<p>Prior to joining SOG, Choo was an Audit Senior Manager with KPMG LLP, with a decade of professional experience working as an auditor in both Singapore and the US, providing audit and assurance services to publicly listed companies.</p>
<p>A Bachelor of Business in Accountancy graduate from the Royal Melbourne Institute of Technology, Choo is also a member of the Institute of Singapore Chartered Accountants and CPA Australia.</p>
<p>Choo is happy that he has come full circle. “I’ve always worked well with SOG’s founders and the Board, and it feels good to come back to contribute to the Group’s growth vision.”</p>
<p>Established since 2011 and listed on SGX Catalist since 2015, SOG focuses on delivering premier medical, health and wellness services to both women and children.</p>
<p>With a long and established track record in the Obstetrics and Gynaecology (O&amp;G) segment, which provides pre-pregnancy counselling, delivery, pregnancy and post-delivery care, the Group has expanded its spectrum of services to include gynaecological and breast cancers, skin and aesthetic treatments, as well as paediatrics.</p>
<p>SOG’s clinics, which are strategically located throughout Singapore, operate under its four business segments of O&amp;G, Cancer-related, Dermatology and Paediatrics.</p>
<p><strong>Debunking Myths</strong></p>
<p>There’s room to grow SOG’s operations further, by organic as well as inorganic means, Choo said. “We’re looking at bringing in new patients to generate higher revenues, as well as expanding the business beyond the current four business segments, focusing on synergistic fields related to the Group’s vision of caring for women’s and children’s health.”</p>
<p>He is keen to debunk the misconception that SOG is all about childbirths. “There is a perception that SOG just delivers babies, and given Singapore’s low birth rates - at 39,000 babies per year over the last few years - investors are worried that we are in a sunset industry.”</p>
<p>“But don’t forget that SOG caters to the health of the female reproductive system, and that is a whole life cycle ranging from fertility planning and pregnancy to diseases of the reproductive organs including gynaecological surgeries,” he pointed out. “Beyond O&amp;G, we also have three other business segments - Cancer-related, Dermatology and Paediatrics.”</p>
<p>The Group’s O&amp;G segment accounted for close to 55% of total revenues in 2019, and its O&amp;G specialists deliver almost 9% of all private hospital deliveries in Singapore, according to estimates by KGI Securities.</p>
<p>Geographical expansion may also be on the cards for SOG. “The domestic market is small and extremely competitive. We’re interested in expanding beyond Singapore, and for a start, will explore the potential of neighbouring markets,” Choo added.</p>
<p>While Singapore remains a key medical tourist destination in Asia thanks to its superior service quality and standards of medical care, foreign patient growth may slow on the back of competition from regional countries. However, broader industry growth prospects remain well-supported by increasing affluence, ageing populations, as well as the rise of lifestyle diseases like diabetes and hypertension.</p>
<p>As a result of COVID-19 and the suspension of non-essential medical services in Singapore during the Circuit Breaker, SOG posted a net profit after tax of S$3.8 million, down 21.4% year-on-year, for the six months ended 30 June 2020. Revenue declined 4.2% to S$17.9 million for the period.</p>
<p>Looking ahead, the Group aims to constantly improve and adapt its medical services to cater to changing healthcare trends, prevalence of chronic illnesses and mutation of diseases.</p>
<p><strong>On the Cutting-Edge </strong></p>
<p>With this goal in mind, SOG invests in and equips its doctors with the right tools and opportunities to constantly upgrade their skills, as well as adopt the latest medical practices and cutting-edge technologies.</p>
<p>“Keeping abreast of technological changes is another way to remain competitive,” Choo said. “For example, we rolled out telehealth consultations during the Circuit Breaker, and we’re using a cloud-based system for patient records so that doctors can access the information on the move.”</p>
<p>SOG also has a mentorship programme in place to attract and retain specialist talent in the Group, so as to boost the quality of patient care and its brand reputation.</p>
<p>“We’re fortunate to have two renowned O&amp;G founding specialists in our Group and other senior doctors who can help mentor, groom and motivate the junior doctors - our culture is what sets us apart and is our key differentiating feature.”</p>
<p>In addition, Choo is crafting a long-term incentive plan to retain doctors within the Group. “This ensures our doctors feel appreciated and are given the opportunity to participate in the success of SOG. We’ll be looking to implement this share option plan in the new financial year,” he added.</p>
<p>As a result, there is much to keep Choo up till the wee hours. “I do worry about the Group’s operations and prospects,” he admitted. “We need to keep moving forward - if we stop thinking about developing the business and scaling it, growth will come to a standstill.”</p>
<p>Being a results-oriented person, Choo gets a high from a positive outcome, be it large or small. “Outcomes inspire and motivate me to do better,” he said. Not surprisingly, commitment, responsibility, and integrity are some of his biggest touchstones.</p>
<p>“When it comes to making decisions, right or wrong is not as important as taking responsibility for your actions, being committed, and going the extra mile to find a solution to fix the issue,” he added.<br>&nbsp;</p>
<p><strong>Singapore O&amp;G Ltd</strong></p>
<p>Established since 2011, SOG is a leading healthcare services provider dedicated to delivering premier medical services for women's and children's health and wellness. With a long and established track record in the Obstetrics and Gynaecology (O&amp;G) segment in Singapore, which provides pre-pregnancy counselling, delivery, pregnancy and post-delivery care, the Group has expanded its spectrum of services to include gynaecological and breast cancer, skin and aesthetic treatments, as well as paediatrics. The Group's clinics, under its four operating segments of O&amp;G, Cancer-Related, Dermatology and Paediatrics, are strategically located throughout Singapore to provide easy access for patients.<br><br>The company website is: www.sog.com.sg</p>
<p>Click <a href="https://www.sgx.com/securities/equities/1D8" target="_blank" rel="noopener">here</a> for the company's StockFacts page.</p>
<p>For the six months ended 30 June 2020 financial results, click <a href="https://links.sgx.com/FileOpen/SOG%20-%20Press%20Release%20for%201H%202020%20Results%2006.08.2020.ashx?App=Announcement&amp;FileID=626622" target="_blank" rel="noopener">here</a>.<br><br>&nbsp;</p>
<p><strong>About&nbsp;kopi-C: the Company brew</strong></p>
<p><strong>Text: Jennifer Tan-Stanisic</strong><br><strong>Photo: Company file</strong><br><br><em>kopi-C&nbsp;</em>is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations.<br><br>For previous editions of&nbsp;<em>kopi-C: the Company brew,</em>&nbsp;please click&nbsp;<a href="https://www.sgx.com/research-education/market-dialogues" target="_blank" rel="noopener">here</a>. &nbsp;<br><br>For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to&nbsp;<a href="https://www.sgx.com/jennifer.t@sgx.com" target="_blank" rel="noopener">jennifer.t@sgx.com</a>.</p>


CEO of SPORE O&amp;G

A high-energy, results-focused leader, Eric Choo enjoys connecting people by stimulating their tastebuds.
“I can’t cook, but I appreciate good food, and I’m very adventurous with different cuisines,” the Chief Executive Officer of SGX-listed healthcare services provider Singapore O&amp;G Ltd (SOG) said with a laugh.
“Food has the power to forge and improve relationships, and I enjoy bringing people together over a table of food.”
Choo, who has spent 10 years of his career in the healthcare industry, was appointed CEO of SOG in February 2020. The 40-year-old was the Group’s former Chief Financial Officer, and one of the key executive officers during its initial public offering (IPO) in 2015. During his first tenure with SOG between 2014 and 2018, he was also involved in the Group’s operational and administrative matters.
Prior to joining SOG, Choo was an Audit Senior Manager with KPMG LLP, with a decade of professional experience working as an auditor in both Singapore and the US, providing audit and assurance services to publicly listed companies.
A Bachelor of Business in Accountancy graduate from the Royal Melbourne Institute of Technology, Choo is also a member of the Institute of Singapore Chartered Accountants and CPA Australia.
Choo is happy that he has come full circle. “I’ve always worked well with SOG’s founders and the Board, and it feels good to come back to contribute to the Group’s growth vision.”
Established since 2011 and listed on SGX Catalist since 2015, SOG focuses on delivering premier medical, health and wellness services to both women and children.
With a long and established track record in the Obstetrics and Gynaecology (O&amp;G) segment, which provides pre-pregnancy counselling, delivery, pregnancy and post-delivery care, the Group has expanded its spectrum of services to include gynaecological and breast cancers, skin and aesthetic treatments, as well as paediatrics.
SOG’s clinics, which are strategically located throughout Singapore, operate under its four business segments of O&amp;G, Cancer-related, Dermatology and Paediatrics.
Debunking Myths
There’s room to grow SOG’s operations further, by organic as well as inorganic means, Choo said. “We’re looking at bringing in new patients to generate higher revenues, as well as expanding the business beyond the current four business segments, focusing on synergistic fields related to the Group’s vision of caring for women’s and children’s health.”
He is keen to debunk the misconception that SOG is all about childbirths. “There is a perception that SOG just delivers babies, and given Singapore’s low birth rates - at 39,000 babies per year over the last few years - investors are worried that we are in a sunset industry.”
“But don’t forget that SOG caters to the health of the female reproductive system, and that is a whole life cycle ranging from fertility planning and pregnancy to diseases of the reproductive organs including gynaecological surgeries,” he pointed out. “Beyond O&amp;G, we also have three other business segments - Cancer-related, Dermatology and Paediatrics.”
The Group’s O&amp;G segment accounted for close to 55% of total revenues in 2019, and its O&amp;G specialists deliver almost 9% of all private hospital deliveries in Singapore, according to estimates by KGI Securities.
Geographical expansion may also be on the cards for SOG. “The domestic market is small and extremely competitive. We’re interested in expanding beyond Singapore, and for a start, will explore the potential of neighbouring markets,” Choo added.
While Singapore remains a key medical tourist destination in Asia thanks to its superior service quality and standards of medical care, foreign patient growth may slow on the back of competition from regional countries. However, broader industry growth prospects remain well-supported by increasing affluence, ageing populations, as well as the rise of lifestyle diseases like diabetes and hypertension.
As a result of COVID-19 and the suspension of non-essential medical services in Singapore during the Circuit Breaker, SOG posted a net profit after tax of S$3.8 million, down 21.4% year-on-year, for the six months ended 30 June 2020. Revenue declined 4.2% to S$17.9 million for the period.
Looking ahead, the Group aims to constantly improve and adapt its medical services to cater to changing healthcare trends, prevalence of chronic illnesses and mutation of diseases.
On the Cutting-Edge 
With this goal in mind, SOG invests in and equips its doctors with the right tools and opportunities to constantly upgrade their skills, as well as adopt the latest medical practices and cutting-edge technologies.
“Keeping abreast of technological changes is another way to remain competitive,” Choo said. “For example, we rolled out telehealth consultations during the Circuit Breaker, and we’re using a cloud-based system for patient records so that doctors can access the information on the move.”
SOG also has a mentorship programme in place to attract and retain specialist talent in the Group, so as to boost the quality of patient care and its brand reputation.
“We’re fortunate to have two renowned O&amp;G founding specialists in our Group and other senior doctors who can help mentor, groom and motivate the junior doctors - our culture is what sets us apart and is our key differentiating feature.”
In addition, Choo is crafting a long-term incentive plan to retain doctors within the Group. “This ensures our doctors feel appreciated and are given the opportunity to participate in the success of SOG. We’ll be looking to implement this share option plan in the new financial year,” he added.
As a result, there is much to keep Choo up till the wee hours. “I do worry about the Group’s operations and prospects,” he admitted. “We need to keep moving forward - if we stop thinking about developing the business and scaling it, growth will come to a standstill.”
Being a results-oriented person, Choo gets a high from a positive outcome, be it large or small. “Outcomes inspire and motivate me to do better,” he said. Not surprisingly, commitment, responsibility, and integrity are some of his biggest touchstones.
“When it comes to making decisions, right or wrong is not as important as taking responsibility for your actions, being committed, and going the extra mile to find a solution to fix the issue,” he added. &nbsp;
Singapore O&amp;G Ltd
Established since 2011, SOG is a leading healthcare services provider dedicated to delivering premier medical services for women's and children's health and wellness. With a long and established track record in the Obstetrics and Gynaecology (O&amp;G) segment in Singapore, which provides pre-pregnancy counselling, delivery, pregnancy and post-delivery care, the Group has expanded its spectrum of services to include gynaecological and breast cancer, skin and aesthetic treatments, as well as paediatrics. The Group's clinics, under its four operating segments of O&amp;G, Cancer-Related, Dermatology and Paediatrics, are strategically located throughout Singapore to provide easy access for patients.  The company website is: www.sog.com.sg
Click here for the company's StockFacts page.
For the six months ended 30 June 2020 financial results, click here.  &nbsp;
About&nbsp;kopi-C: the Company brew
Text: Jennifer Tan-Stanisic Photo: Company file  kopi-C&nbsp;is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations.  For previous editions of&nbsp;kopi-C: the Company brew,&nbsp;please click&nbsp;here. &nbsp;  For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to&nbsp;jennifer.t@sgx.com.

Singapore O&G Taps Accelerating Healthcare Demand

<h2>10 Questions for Singapore O&amp;G Limited</h2>
<p><strong>Company Overview</strong><br>Established since 2011, Singapore O&amp;G Ltd. (“SOG”) is a healthcare service provider dedicated towards delivering premier medical services to women’s and children’s health and wellness at affordable prices. The Group’s clinics, under its four operating segments of Obstetrics and Gynaecology (“O&amp;G”), Cancer-related, Dermatology and Paediatrics, are strategically located throughout Singapore to provide easy access to its patients. <a href="https://www.sgx.com/securities/equities/1D8" target="_blank" rel="noopener">Link to StockFacts company page</a></p>
<ol>
<li><strong>Describe SOG’s recent financial performances</strong></li>
</ol>
<ul>
<li>SOG has posted stable revenue growth over the years since our IPO in 2015. Our profit from operations has doubled from S$6.1 million in 2015 to S$12.5 million in 2019</li>
<li>Despite the COVID-19 pandemic, coupled with the suspension of non-essential medical services in April and May 2020, the Group posted revenue of S$17.9 million for 1H 2020 which is a slight decline of 4.2% as compared to S$18.7 million in 1H 2019. This is largely attributed to the performance of our O&amp;G and Paediatricssegments.</li>
<li>During this challenging time, the Group posted a net profit after tax of S$3.8 million for 1H 2020 (which is a decrease of 21.4% from S$4.8 million in 1H 2019).</li>
<li>The Group paid out an interim dividend for 1H 2020 of 0.50 Singapore cents per share, maintaining a dividend payout ratio of about 62% of the Group’s net profit after tax.</li>
</ul>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/182/061/original/image_86408737521610426849792.png?1610426851" class="editor-image img-responsive" data-smartkarma-image-id="182061"></figure>

10 Questions for Singapore O&amp;G Limited
Company Overview Established since 2011, Singapore O&amp;G Ltd. (“SOG”) is a healthcare service provider dedicated towards delivering premier medical services to women’s and children’s health and wellness at affordable prices. The Group’s clinics, under its four operating segments of Obstetrics and Gynaecology (“O&amp;G”), Cancer-related, Dermatology and Paediatrics, are strategically located throughout Singapore to provide easy access to its patients. Link to StockFacts company page

Describe SOG’s recent financial performances


SOG has posted stable revenue growth over the years since our IPO in 2015. Our profit from operations has doubled from S$6.1 million in 2015 to S$12.5 million in 2019
Despite the COVID-19 pandemic, coupled with the suspension of non-essential medical services in April and May 2020, the Group posted revenue of S$17.9 million for 1H 2020 which is a slight decline of 4.2% as compared to S$18.7 million in 1H 2019. This is largely attributed to the performance of our O&amp;G and Paediatricssegments.
During this challenging time, the Group posted a net profit after tax of S$3.8 million for 1H 2020 (which is a decrease of 21.4% from S$4.8 million in 1H 2019).
The Group paid out an interim dividend for 1H 2020 of 0.50 Singapore cents per share, maintaining a dividend payout ratio of about 62% of the Group’s net profit after tax.



10 in 10 with Singapore O&G - Healthcare Specialist for Women & Children

<div>
<div>
<div>
<div>
<p><em><strong>These equity research reports are not written by the SGX</strong>. SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.</em></p>
<p>RESULTS UPDATE</p>
<div>
<div>
<div>
<div>
<h2>Singapore O&amp;G</h2>
<div>
<div>
<div>
<p><strong>Just cruising along</strong></p>
<div>
<div>
<div>
<p>• Maintain NEUTRAL with revised target price of S$0.25. While recovery seems to be on track with 1H20 revenue surpassing expectations, increased employee remuneration expenses and lacking performance in the Dermatology segment weigh on our profit forecasts.</p>
<p>•Deferments not cancellations. SOG clinics have seen demand return since the easing of circuit breaker measures to allow for non-essential medical services, on top of increasing consumer confidence as Covid-19 case numbers in Singapore continue to trend downwards.</p>
<p>• The worst is over, time to look for growth catalysts. We expect demand will slowly recover to pre-Covid levels, especially considering SOG is less dependent on medical tourism. Yet, we see a lack of catalysts to boost growth in the near term, and thus maintain a NEUTRAL rating and remain conservative in our forecasts.</p>
</div>
<div>
<div>
<div>
<p><strong>1H20 review.</strong> SOG outperformed in the first half of the year, especially so considering close to 2.5 months of the period were affected by circuit breaker measures that forced deferment of non-essential medical services. Revenue in 1H20 made up c.60% of our FY forecasts, although profits were dragged down mainly by an increase in employee remuneration expenses, for talent retention and recognition of past performance contributions of certain medical practitioners.</p>
<p>The marginal 4.2% decrease YoY in 1H20 revenue is largely attributed to its Dermatology segment (-S$0.7mn YoY), since a larger proportion of its services are non-essential (i.e. aesthetics services), and more dependent on medical tourism, as compared to the rest of its business segments. The Dermatology segment made a profit from operations of S$90,000 in 1H20, as compared to S$278,000 in the first half of the year during which goodwill was impaired. However, despite potentially poorer performance for FY20F, management is of the view that another significant impairment is unlikely.</p>
<div>
<div>
<div>
<p>While the increase in employee remuneration expenses (14% YoY) were somewhat offset by government grants and support schemes in 1H20, it will weigh rather significantly on future earnings.</p>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>





These equity research reports are not written by the SGX. SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.
RESULTS UPDATE




Singapore O&amp;G



Just cruising along



• Maintain NEUTRAL with revised target price of S$0.25. While recovery seems to be on track with 1H20 revenue surpassing expectations, increased employee remuneration expenses and lacking performance in the Dermatology segment weigh on our profit forecasts.
•Deferments not cancellations. SOG clinics have seen demand return since the easing of circuit breaker measures to allow for non-essential medical services, on top of increasing consumer confidence as Covid-19 case numbers in Singapore continue to trend downwards.
• The worst is over, time to look for growth catalysts. We expect demand will slowly recover to pre-Covid levels, especially considering SOG is less dependent on medical tourism. Yet, we see a lack of catalysts to boost growth in the near term, and thus maintain a NEUTRAL rating and remain conservative in our forecasts.




1H20 review. SOG outperformed in the first half of the year, especially so considering close to 2.5 months of the period were affected by circuit breaker measures that forced deferment of non-essential medical services. Revenue in 1H20 made up c.60% of our FY forecasts, although profits were dragged down mainly by an increase in employee remuneration expenses, for talent retention and recognition of past performance contributions of certain medical practitioners.
The marginal 4.2% decrease YoY in 1H20 revenue is largely attributed to its Dermatology segment (-S$0.7mn YoY), since a larger proportion of its services are non-essential (i.e. aesthetics services), and more dependent on medical tourism, as compared to the rest of its business segments. The Dermatology segment made a profit from operations of S$90,000 in 1H20, as compared to S$278,000 in the first half of the year during which goodwill was impaired. However, despite potentially poorer performance for FY20F, management is of the view that another significant impairment is unlikely.



While the increase in employee remuneration expenses (14% YoY) were somewhat offset by government grants and support schemes in 1H20, it will weigh rather significantly on future earnings.




















Non-SGX Report: Singapore O&G: Just Cruising Along

Singapore

Established in 2011, Singapore O&G Ltd. (SOG) is a leading healthcare service provider dedicated towards delivering premier medical services to women's and children's health and wellness at affordable prices.

With a long and established track record in Singapore providing obstetrics and gynaecology (O&G) services such as pre-pregnancy counselling, delivery, pregnancy and post-delivery care, the Group has since further expanded its spectrum of healthcare services to include paediatrics, endocrinology, gynaecological cancer, cancer-related general surgery for breast, thyroid and colon (colorectal), as well as skin and aesthetics treatments.

The Group's clinics, under its four operating segments of O&G, Paediatrics, Cancer-related and Dermatology are strategically located throughout Singapore to provide easy access to its patients. 

SOG has been listed in the Catalist board of the Singapore Exchange Securities Trading Limited since 4 June 2015.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Singapore O&G Ltd. (SOG SP)

Singapore Medical’s Light VGO Offer from Top Management

The offer is light, but the offeror reserves the right to reduce the acceptance condition to a lower level (above 50%). At the last close, the...

Arun George

Smartkarma Corporate Webinar | Singapore O&G: Nurturing Women’s and Children’s Health in Singapore

On 17 August, 5pm SGT, join us for a discussion and presentation on Singapore O&G Ltd with CEO Eric Choo. Eric will have a fireside chat with Criss...

Smartkarma Research

Singapore O&G Taps Accelerating Healthcare Demand

A high-energy, results-focused leader, Eric Choo enjoys connecting people by stimulating their tastebuds. “I can’t cook, but I appreciate good...

Singapore Exchange Ltd (SGX)

10 in 10 with Singapore O&G - Healthcare Specialist for Women & Children

10 Questions for Singapore O&G Limited Company OverviewEstablished since 2011, Singapore O&G Ltd. (“SOG”) is a healthcare service provider...

Singapore Exchange Ltd (SGX)

Non-SGX Report: Singapore O&G: Just Cruising Along

These equity research reports are not written by the SGX. SGX supports the distribution of the research reports by external contributors....

Singapore Exchange Ltd (SGX)

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)