Hot stock: Medtecs sustains rally on tailwinds of strong results, surges 14.2%

SHARES in healthcare play Medtecs International Corporation extended gains to rise over 14 per cent on Thursday afternoon amid broad market gains.

This comes after the company on Tuesday reported a substantial increase in its half-year earnings. For the six months ended June 30, 2020, Medtecs posted a net profit of US$38.9 million - 101 times the US$385,000 net profit reported for the same period a year ago.

Following the announcement, Medtecs surged 44.6 per cent to hit S$1.41 by the closing bell on Wednesday, up 43.5 Singapore cents. Having risen from 3.7 Singapore cents on Dec 31, 2019, its price as at Wednesday's close represents a gain of 38 times in the year to date.

As at 3.02pm on Thursday, the counter was trading at S$1.61 on a cum-dividend basis, up S$0.20 or 14.2 per cent.

Some 88.2 million shares changed hands, making it the most active by value on the Singapore Exchange (SGX), and the second-most heavily traded counter by volume as at afternoon trade.

SGX market strategist Geoff Howie told The Business Times on Thursday that Medtecs has seen its weightage in the iEdge SG All Healthcare Index soar from 0.3 per cent at the end of 2019, to 11.2 per cent at present.

It has also been the 30th most traded stock this year, averaging daily turnover of S$14 million a day, he said, adding that Medtecs' market cap has grown from S$20 million at the end of 2019 to above S$800 million now.

Medtecs provides hospital services and healthcare products. It also manufactures reusable hospital apparel, disposable personal protective equipment and workwear.