TMC Life sees 89% jump in 4Q earnings

By NG MIN SHEN

TMC Life Sciences Bhd saw its earnings for the fourth quarter (4Q) ended Aug 31, 2017, surging 89% year-on-year (YoY) to RM11.1million due to improved resource optimisation during the quarter under review.

The company’s 4Q revenue rose 16.3% YoY, to RM39.31 million on higher patient load supported by additional bed capacity, consultants recruited and continuing marketing activities.

For the financial year ended Aug 31, 2017 (FY17), the medical services provider’s net profit jumped 45.7% YoY to RM26.03 million as revenue increased 15.4% YoY to RM151.71 million.

The higher growth rate in profit compared to revenue was mainly due to lower fair value charges on the Employee Share Option Scheme and resource optimisation during the year, it told Bursa Malaysia yesterday.

These drove the company’s pretax earnings margin to 20% in FY17 compared to 18% in FY16.

The company has proposed a single-tier final dividend of 0.167 sen for FY17, subject to shareholders’ approval at its forthcoming AGM. Meanwhile, a Bernama report yesterday noted the extension block of TMC Life Sciences’ flagship hospital — the 200-bed Tropicana Medical Centre in Kota Damansara, Selangor — is slated to be ready by end-2020, adding 400 beds to its stable.

Construction of the expansion project is expected to commence by the end of this year, company officials said in a media briefing.

The group hopes to receive approval from the authorities for its Thomson Iskandar Medical Hub project in Johor by the 1Q of next year.

The RM1.2 billion project, which will have 500 beds upon completion after a tentative five-year construction period, will be developed as part of the proposed Vantage Bay Healthcare City in Johor.

In view of the overall muted economic environment which poses challenges to the private healthcare sector, the group intends to take measures to maintain growth such as ramping up marketing efforts to boost medical tourism.