Yahoo Finance OUE Healthcare shares surge over 34% after JV opens first hospital in Changshu, China
The hospital will be providing premium obstetrics, gynaecology, paediatrics and other related medical services in Changshu.
Shares in OUE Healthcare 5WA opened at 3.5 cents apiece on May 16, 34.6% higher than the group’s last-closed price of 2.6 cents on May 15.
The surge came after OUE Healthcare announced that its joint venture (JV) opened its first hospital in Changshu, China, named Changshu Hospital.
Operated by OUE Healthcare’s JV company, China Merchants Lippo Hospital Management (Shenzhen) Limited, the 100-bed obstetrics and gynaecology (O&G) hospital is the first such hospital to be commissioned in the Chinese city. The hospital will be providing premium obstetrics, gynaecology, paediatrics and other related medical services to patients in Changshu, Suzhou, and the Yangtze River Delta region.
In addition, the hospital, which has a total gross floor area (GFA) of 23,000 sqm, has a 27-suite confinement centre that provides postpartum rehabilitative services. The hospital also has other ancillary medical services such as medical aesthetics.
China Merchants Lippo Hospital Management (Shenzhen) is the group’s 50:50 joint venture company with a subsidiary of China Merchants Shekou Industrial Zone Holdings (CMSK).
CMSK, in turn, is a member company of the state-owned Hong Kong-based conglomerate, China Merchants Group.
“I am glad our first JV hospital with China Merchants Group in China is located in Changshu, Suzhou - one of the most economically vibrant and pro-business locations in China. We hope to bring in best-in-class hospital care and services to meet the rising expectation of Chinese consumers based on international standards and Singapore’s clinical and care experience,” says Lee Yi Shyan, chairman of OUE Healthcare.
“We are excited with the opening of Changshu Hospital, which is an important milestone in our journey to build a regional healthcare ecosystem anchored on international medical quality and excellence. We believe that our holistic value proposition in providing a full spectrum of care services will meet the personalised needs of our patients and will set us apart from our peers,” adds Yet Kum Meng, CEO of OUE Healthcare.
Changshu is a county-level city under Suzhou in the Jiangsu province. According to OUE Healthcare, the city has achieved “steady economic growth” with its GDP for 2022 growing by 2.0% y-o-y to a record RMB277.4 billion ($53.29 billion), putting it among the top five prosperous cities in China.
As at 2.44pm, shares in OUE Healthcare are trading 0.5 cent higher or 19.23% up at 3.1 cents.
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