Yahoo Finance 5 Singapore Medical-Related Stocks That Can Keep Your Portfolio in the Pink of Health
As the saying goes, health is wealth.
Keeping healthy is important for you to enjoy the fruits of your labour when you sit back and ease into your retirement.
Having a robust investment portfolio is equally important to prepare you for your golden years.
Healthcare stocks deserve a place in any investment portfolio as these businesses can ride on the tailwinds of an ageing population with increasing healthcare needs.
Hence, such companies provide stability along with steady growth.
Many of them even pay out a dividend to boot that will help to boost the passive income you receive when you stop working.
Here are five medical stocks that can keep your investment portfolio healthy for the foreseeable future.
Raffles Medical Group (SGX: BSL)
Raffles Medical Group, or RMG, is an integrated healthcare provider with a network of three hospitals and more than 100 multi-disciplinary clinics.
The group employs 2,800 staff and offers a comprehensive range of medical services such as specialist care, health screening, and dental services.
RMG reported an impressive set of earnings for 2022.
Revenue inched up 5.9% year on year to S$766.5 million on the back of higher patient volumes as borders reopened.
Operating profit surged 61.4% year on year to S$195.8 million while net profit soared 70.5% year on year to S$143.5 million.
Free cash flow jumped 55.4% year on year to S$171.2 million for 2022, and the integrated healthcare provider declared a dividend of S$0.038, higher than the S$0.028 paid out a year ago.
RMG expects business to remain brisk as more local and expatriate patients visit its hospitals and clinics. China’s reopening should also bode well for its business there.
Healthway Medical Corp Ltd (SGX: 5NG)
Healthway Medical offers affordable medical treatment and holistic healthcare at its 100-plus clinics and medical centres around Singapore.
The group offers health screening, dental services and allied healthcare services.
Healthway Medical reported a commendable set of results for 2022 with revenue rising 14.3% year on year to S$159.9 million.
Net profit improved by 16.2% year on year to S$12.5 million.
The group generated a free cash flow of S$22.4 million for 2022, 11.1% higher than the S$20.2 million generated in 2021.
Healthway will focus on the Healthier SG initiative to be rolled out in mid-2023 and has expanded its network of clinics with the addition of new GP clinics in Millenia Walk, Marine Terrace and other areas.
ISEC Healthcare Ltd (SGX: 40T)
ISEC Healthcare provides eye care services to the local and regional community.
The group provides a full range of speciality services such as laser eye surgery (LASIK), orbital reconstruction, and corneal transplants.
ISEC Healthcare reported a sparkling financial performance for 2022 with revenue jumping 56% year on year to S$62.9 million.
Gross profit surged 61% year on year to S$28.8 million while net profit soared 81% year on year to S$12.5 million.
The eyecare specialist also generated a healthy free cash flow of S$12.1 million.
A final dividend of S$0.0108 was declared, more than triple the S$0.003 paid out a year ago.
ISEC currently has seven clinics in Malaysia, one in Singapore and one in Myanmar as of 31 December 2022.
Management is eyeing potential business expansion in China and Vietnam.
TalkMed Group Ltd (SGX: 5G3)
TalkMed is a provider of medical oncology, stem cell transplant and palliative care services.
The group operates in Singapore, Hong Kong, Vietnam, and China.
TalkMed saw its revenue climb 26.1% year on year in 2022 to S$76.6 million.
Net profit increased by 21.6% year on year to S$30.5 million.
Free cash flow soared 64.6% year on year to S$36.9 million last year.
In line with the good results, TalkMed increased its final dividend from S$0.009 to S$0.015.
The group is expecting better patient flow for its Hong Kong and China medical centres as borders reopen and restrictions ease.
However, for Singapore, the change in insurance coverage for cancer treatments may mean higher out-of-pocket expenses for patients, thus negatively impacting patient volumes.
Q&M Dental Group Limited (SGX: QC7)
Q&M Dental operates the largest network of private dental clinics in Singapore.
The group operates 107 clinics across Singapore along with 44 dental clinics and a dental supplies and equipment distribution company in Malaysia.
For 2022, total revenue dipped 12% year on year to S$181.2 million, principally due to a 55% year on year plunge in revenue from COVID-19 tests.
Net profit for the dental chain plunged 63% year on year to S$11.3 million.
Despite the weaker results, free cash flow remained healthy at S$22.6 million for 2022.
Q&M Dental’s core healthcare business performed well last year, enjoying a 2% year on year increase in revenue to S$172.1 million and a 7% year on year rise in net profit to S$17.1 million.
A second interim dividend of S$0.006 was declared, bringing 2022’s dividend to S$0.01.
Moving forward, Q&M Dental intends to expand its network of dental clinics in Singapore, Malaysia and China.
The group’s medical laboratory will roll out new PCR tests and also include other tests for sepsis and other pathogens as well as colorectal cancer screening and pharmacogenomics.
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Disclosure: Royston Yang owns shares of Raffles Medical Group.
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