Ageing is a process no one can avoid in life.
In the next few decades, Asia is set to become one of the oldest in the world, with an Asian Development Bank report estimating that there will be 923 million senior citizens by 2050.
The World Health Organisation (WHO) has also highlighted this problem.
The organisation highlighted that the proportion of people aged 60 and above will more than double to 20.3% by the middle of this century, up from less than 10% in 2017.
WHO also flagged many issues that an older population will face, such as poorer physical health, mental health issues such as dementia, and injuries and disabilities that will affect mobility.
While we cannot stop the process of aging, the good news is that there is sufficient time to prepare ourselves for this silver tsunami that will inevitably wash over us.
Many businesses have begun to cater to this unavoidable trend by providing products and services that cater to the elderly.
Here are four businesses that can ride this wave and grow their top and bottom lines over time.
Q&M Dental Group (SGX: QC7)
Q&M Dental was established in 1996 and is now the largest dental healthcare group in Singapore with 87 dental clinics around the island. It also operates 37 clinics in Malaysia.
The group employs more than 200 qualified dentists, of which 40 are specialists or dentists who have undergone extensive post-graduate training.
As the population ages, there will be increased demand for oral hygiene care, and Q&M is well-positioned to cater to this need.
The group reported a strong set of earnings for its fiscal 2021 first half (1H2021).
Total revenue jumped by 73% year on year to S$94.6 million, led by a more than year on year doubling of revenue from its medical laboratory and dental equipment and supplies division.
Net profit surged by 119% year on year to S$17.8 million.
An interim dividend of S$0.01 was declared, more than double the interim dividend of S$0.004 declared in the prior year.
In addition, the group also announced a 1-for-5 bonus issue in light of the strong performance.
Q&M has unveiled an aggressive expansion plan and intends to open at least 30 dental clinics a year in both Singapore and Malaysia over the next decade.
Raffles Medical Group (SGX: BSL)
Raffles Medical Group, or RMG, is an integrated healthcare provider that operates in 14 cities within five countries in Asia.
The healthcare group owns the flagship Raffles Hospital in Singapore and also operates a network of clinics providing health screening and family medicine.
The group has been expanding its presence in China with the recent commencing of operations at the 400-bed Raffles Hospital Shanghai.
Meanwhile, Raffles Hospital Chongqing has been operating since early last year and is seeing higher patient loads.
The group’s results for 1H2021 reflect higher business volume, as revenue jumped by 42.4% year on year to S$343.8 million.
Operating profit more than doubled year on year to S$56.1 million while net profit surged by 128.7% year on year to S$39.4 million.
Barring a worsening of the pandemic situation, RMG expects 2021 to be more profitable than 2020.
Econ Healthcare (Asia) Limited (SGX: EHG)
Econ Healthcare was established in 1988 and is a leading premium private nursing home operator in Singapore and Malaysia.
The group operates 11 medicare centres and nursing homes in Singapore, Malaysia and China.
The group recorded a slight 7.1% year on year dip in revenue to S$20.4 million for its fiscal year 2021 (FY2021) ended 31 March 2021.
However, operating profit rose 40.6% year on year to S$8.2 million and net profit jumped by 41.2% year on year to S$5.7 million.
Econ Healthcare plans to open its 12th nursing home in Singapore next year with a 236-bed capacity.
In addition, the group will also add two nursing homes in China in 2022, increasing its total bed capacity from the current 1,376 to 2,336 by next year.
Boustead Singapore Limited (SGX: F9D)
Boustead Singapore Limited, or BSL, is an engineering conglomerate with four main divisions.
The group has a healthcare division that provides medical solutions for age-related chronic diseases and mobility issues, with a focus on rehabilitative care.
The division saw a 16% year on year fall in revenue to S$15.2 million as clients focused on tackling the pandemic, thus delaying orders.
For the current fiscal year, the group is restarting negotiations with hospitals on an initiative to run functional assessment service centres that can address patients’ rehabilitative needs.
The division is well-positioned for the ageing population and should see its products and services remain in high demand as the decades roll by.
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Disclaimer: Royston Yang does not own shares in any of the companies mentioned.