Thomson Medical’s H2 profit surges 572.7% to S$41.3m; CEO resigns to pursue personal interests

HEALTHCARE provider Thomson Medical Group : A50 0% on Monday (Aug 29) posted a 572.7 per cent jump in net profit for the second half of 2022, on the back of revenue growth as a result of a rise in patient loads and higher average bill sizes.

The group also announced the resignation of executive director and group chief executive Dr Wong Chiang Yin, who is leaving to pursue personal interests. His last day will be on Sep 30. The board said it has identified a potential successor to Dr Wong and will be making an announcement at an appropriate time, it said in a press statement.

Dr Wong, who took on the group chief executive role in 2020, led the group through the Covid-19 pandemic. The group has also managed to grow its market share in obstetrics in Singapore, as well as develop new services, said Thomson Medical chairman Ng Ser Miang.

In its results announcement, Thomson Medical said net profit for the 6 months ended Jun 30 stood at S$41.3 million, compared with a net profit of S$6.1 million posted the same period a year ago.

The results translate to earnings per share (EPS) of 0.156 Singapore cent, against earnings per share of 0.023 cents in the year ago period.

Revenue was up 52.2 per cent to S$188.3 million from S$123.8 million in the year before. Hospital and specialised services revenue grew 15.8 per cent and 102.1 per cent respectively, as overall patient loads rose and higher average bill size increased as a result of business recovery from Covid-19. 

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In Singapore, revenue growth was further boosted by project-related services like managing vaccination centres and transitional care facilities (TCFs) – previously Covid-19 treatment facilities.

Revenue in Malaysia also continued to improve in the second half as patient loads increased and the group handled higher case intensity. A new expansion wing at Thomson Hospital Kota Damansara also opened during H2 2022.

The board has proposed a record special dividend of 0.115 Singapore cent per share for the full year ended Jun 30, compared with 0.015 cent in the year-ago period.

This comes as net profit for the full year ended Jun 30 surged 277.6 per cent to S$53.8 million from S$14.2 million, buoyed by higher patient loads, larger average bill size, Covid-related projects and the opening of a new wing in Malaysia. EPS for the full-year stood at 0.203 Singapore cent, compared with an EPS of 0.054 cent in the year ago period.

Meanwhile, revenue was up 38.8 per cent to S$333.7 million, from S$240.4 million the year before. Singapore, which contributed to three-quarters of revenue, grew 46 per cent to S$254.6 million, mainly due to higher income from core services like obstetrics, gynaecology and paediatrics, and from managing TCFs and Covid-19 treatment facilities.

Separately, Thomson Medical’s board has appointed Lim Wee Kiat as executive vice-chairman. Lim, who is the son of the group’s controlling shareholder Lim Eng Hock, currently oversees Thomson X, the group’s digital arm.

Lim Wee Kiat’s appointment as executive vice-chairman will be effective from Sep 1. He will be responsible for the group’s overall growth strategies and will work with the board to grow Thomson Medical’s business through mergers and acquisitions, particularly core hospital services in fast-growing South-east Asia economies, the board noted.

Ng added: “As the healthcare industry progresses and the group grows in size, it is inevitable that technology will play a pivotal role for the delivery of healthcare services. We see huge opportunities to deploy data analytics to enhance quality of patient care, and to develop new business verticals.”

Following the release of Thomson Medical’s results, its shares jumped as much as 3.4 per cent during early morning trade on Monday, reaching a high of S$0.091. There were no married deals recorded, according to ShareInvestor data. 

Shares of Thomson Medical closed 1.1 per cent or S$0.001 higher at S$0.089 on Monday. The counter was also the fourth most traded by volume on the Singapore bourse, with 45.93 million shares changing hands.