As Singapore’s population ages, there has been an increased focus on healthcare in recent years.
According to the National Population and Talent Division, as of June 2021, 17.6% of the population was aged 65 and above, up from the 16.8% a year ago.
The pandemic has also thrown the spotlight on healthcare spending as hospitals, nursing homes and clinics are stretched to capacity dealing with burgeoning cases.
During the recent Singapore Budget 2022, the government reiterated that healthcare will form the bulk of increases in social spending by 2030.
The current forecast projects that 25% of Singapore’s population will be aged 65 and above by then, prompting higher social and healthcare needs.
For investors, healthcare stocks could be a candidate for their portfolios.
Here are four healthcare-related stocks that reported surging profits.
Alliance Healthcare Group Limited (SGX: MIJ)
Alliance Healthcare is an integrated healthcare group that provides a suite of healthcare services in Singapore.
The group designs healthcare solutions for its clients and has arrangements with insurers and service corporations to offer healthcare and treatment at private hospitals.
For its fiscal 2022 first half (1H2022) ended 31 December 2021, Alliance Healthcare saw revenue increasing 23.8% year on year to S$28.6 million.
The group saw sales increases across its mobile and digital health services, GP clinic services and managed healthcare solutions segments.
Net profit for 1H2022 surged by 88.1% year on year to S$1.7 million.
CEO Barry Thng believes that the group’s mobile segment should drive more growth for Alliance Healthcare, and that management will enhance the group’s digital technology capabilities to seize more business opportunities.
For its FY2021, Alliance Healthcare paid out a first and final dividend of S$0.0023 per share.
Thomson Medical Group Ltd (SGX: A50)
Thomson Medical Group Ltd, or TMG, owns and operates Thomson Medical Centre and a network of specialist clinics that provide outpatient women and children’s healthcare services.
The group’s clinics also provide a range of speciality services including gynaecology oncology, dentistry, specialist dermatology and sports medicine.
For 1H2022, TMG reported a 24.6% year on year jump in revenue to S$145.4 million while operating profit increased by 18.4% year on year to S$30.9 million.
Net profit climbed by 54.1% year on year to S$12.5 million.
The improved results were driven by an increase in patient loads, higher average bill sizes, and project-related services.
The group’s Malaysian hospital, Thomson Hospital Kota Damansara, is set to open in phases from the third quarter of this year.
TMG also has a digital arm, Thomson X, that announced a joint venture with telehealth provider WhiteCoat to launch a mobile application that offers personalised online-to-offline healthcare services for women and children.
A dividend of S$0.00015 per share was paid out in FY2021.
Singapore Paincare Holdings Limited (SGX: FRQ)
Singapore Paincare Holdings, or SPC, provides medical services such as pain care management, primary care and other services.
The group focuses on treatments relating to chronic pain and also provides services such as cancer pain treatment, specialised injections, and cognitive behavioural therapy.
SPC saw a 70.9% year on year surge in revenue to S$8.3 million, driven by a sharp increase in patients due to the group’s participation in the national vaccination programme and the establishment of the Vaccinated Travel Lanes (VTLs).
Operating profit soared by 180% year on year to S$2.8 million and net profit more than tripled year on year from S$0.7 million to S$2.3 million.
The group is cautiously optimistic that the VTLs will lead to an increase in medical tourists from the region, which should provide a boost for its business.
Meanwhile, SPC has also expanded its service offerings to include a traditional Chinese medicine (TCM) arm.
This new TCM clinic will be part of its new integrated pain care centre and is scheduled to open in Marina Square.
The group proposed a final dividend of S$0.0075, higher than the S$0.007 that was paid out a year ago.
Raffles Medical Group (SGX: BSL)
Raffles Medical Group, or RMG, is an integrated healthcare provider with a network of three tertiary hospitals and over 100 multidisciplinary clinics.
The group offers a wide range of services such as health screening, specialist care, dental and TCM and operates in 14 cities within five countries in Asia.
For its fiscal 2021 (FY2021) earnings, RMG reported a 27.4% year on year increase in revenue to S$723.8 million.
Operating profit climbed by 37.2% year on year to S$121.3 million while net profit rose 27.7% year on year to S$84.2 million.
RMG had been deployed to support various COVID-19 initiatives of the government, which helped to boost revenue and net profit.
The group also declared a final dividend of S$0.018 and a special dividend of S$0.01, bringing FY2021 dividends to S$0.028.
RMG’s Shanghai hospital began operations in July last year and management is cautiously optimistic that its three hospitals in China (i.e. Chongqing, Beijing and Shanghai) will continue to see improved patient loads.
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Disclaimer: Royston Yang owns shares of Raffles Medical Group.
