TMC Life Sciences targets China, Asean

By SHAHEERA AZNAM SHAH

HOSPITAL operator TMC Life Sciences Bhd is in talks with several local and international healthcare providers for the possibilities of mergers and acquisitions as part of the group’s expansion plans.

Group CEO Roy Quek Hong Sheng (picture) said the firm is in talks with hospitals in China, Indonesia, Singapore and Malaysia.

“We are interested in extending our services, mostly to our international patients’ home countries to ensure that they will continue receiving the same level of healthcare quality during their follow-up treatments.

“For this venture, we have been talking to full-fledged hospitals that already have the expertise and stable operating management, so that we can contribute the value-added elements to their operations,” he told a media briefing in Petaling Jaya yesterday.

Quek added that the group is expected to complete the acquisition process within six months to a year.

He said 10% of patients who sought treatment at TMC Life Sciences’ hospitals are international clients, and the majo-rity of them are Indonesians.

“The Indonesians have been the major portion of our international patients, while patients from China have been growing at a double-digit pace in recent years,” he said.

The company’s revenue in the fourth quarter ended Aug 31, 2018, rose 10% year-on-year (YoY) to RM43.2 million from RM39.3 million a year ago. Its net profit rose 2% YoY to RM11.3 million from RM11.1 million.

Quek said the higher earnings were attributed to the increase in patient flow and higher intensity of medical and surgical cases operated by its hospitals and fertility centres.

“We are quite surprised to be able to achieve this, despite having started with our expansion projects in Kota Damansara and Johor, because the noise (from the construction and renovation works) could bring down patient volume.”

The group’s earnings per share inched 2% higher to 65 sen from 64 sen last year.

For the full-year performance (FY18), its revenue rose 11% YoY to RM169 million from RM151.7 million in FY17.

Its net profit grew 8% YoY in FY18 to RM28.1 million, from RM26 million a year ago.

In FY18, TMC Life Sciences’ operational performance had improved with the increase in both outpatient and inpatient numbers at its Thomson Hospital Kota Damansara (THKD) and fertility centres.

In the second half of 2018 (2H18), the number of outpatients rose 6% to 72,067, compared to 68,153 in 2H17, while its inpatients’ admission also grew 6% to 10,803 in FY18.

“The healthy increase in outpatients’ admission reflects the strong growth in medical tourism and demand for fertility services outside the Klang Valley,” he said.

TMC Life Sciences, controlled by Singapore billionaire Peter Lim Eng Hock, operates THKD, formerly known as Tropicana Medical Centre. At the moment, THKD contributes 80% to the group’s revenue, while the remaining 20% comes from the fertility centres.