• PATMI almost doubled to S$1.68mn, while revenue increased 23% YoY, mainly driven by higher revenue contribution from mobile and digital healthcare services.
• Strong operating cash flow of S$4.7mn, underpinning robust cash position of S$18.4mn and higher net cash of S$12.3mn.

The Positives

+ Huge growth in mobile and digital health services. Revenue more than tripled, while pretax profit increased from S$24k in 1H21 to US$1.2mn in 1H22. Higher revenue was due to Jaga-Me’s involvement in provision of Covid-19 related medical services, including home swabs, onsite vaccines and telemedicine consultations for home recovery programme.

+ GP clinics recorded steady growth. Revenue from GP clinics increased 27%, while pretax profit more than doubled.  The easing of Covid-19 restrictions resulted in more patient visits at GP clinics.

The Negatives

– Managed healthcare services recorded net loss. Net loss in 1H22 deepened to S$167k, from S$126.3k, as patient volume has yet to return to pre-Covid level.

– Decreased revenue and profit contribution from pharmaceutical services. There was reduced demand for medical supplies from certain hospitals, after the stocking in 1H21.

Outlook

Alliance Healthcare is committed to strengthening its digital technology capabilities to remain in the forefront of an increasingly digitalised healthcare sector, especially in a post-Covid world. Digitalisation in healthcare provides cost-effective, time-saving and quality healthcare.

Source: Phillip Capital Research - 16 Feb 2022