SMG may adopt dividend policy in fiscal 2019, eyes regional expansion

SINGAPORE Medical Group (SMG) may implement a formal dividend policy in fiscal 2019 along with a share buy-back mandate as part of its plan to enhance shareholder value, the Catalist-listed clinic operator said in an exchange filing on Monday night.

This comes after the group recently completed a strategic review of its operations.

Over the course of fiscal 2018, SMG intends to pursue plans for new clinics in key segments such as O&G (obstetrics and gynaecology), paediatrics and other specialist verticals, as these initiatives will contribute to steady organic growth in Singapore, the group said.

In addition, the firm will also continue to explore growth initiatives that have the potential for earnings-accretive mergers and acquisitions.

To facilitate the scaling of its overseas operations, the group intends to commit S$3 million to invest and grow each of these business ventures, including those in Vietnam and Indonesia.

It also has plans to go into new geographies such as Malaysia, which will serve as another gateway for regional expansion, SMG said.

The group added that it will be exploring the possibility of increasing its stake in CityClinic Asia Investments in the current financial year once it has reached profitability.

SMG, through its joint venture company SMG International (Vietnam), holds an effective 16 per cent stake in CityClinc Asia Investments, which owns and operates two 15,000 square feet clinics in Ho Chi Minh City, Vietnam.

SMG shares traded at 46 Singapore cents as at noon on Tuesday, unchanged from their previous close.