|There are 18 healthcare service providers listed on SGX that operate patient care services and facilities in Singapore and worldwide. These facilities include laboratories, hospitals, nursing homes and clinics that offer services and treatments ranging from family medicine, dentistry, endoscopy and Traditional Chinese Medicine (TCM) to aesthetics, gynaecology, oncology, paediatrics, orthopaedics, ophthalmology and even cord blood banking.
In the July month-to-date, the five best-performing healthcare service providers were: Aoxin Q & M Dental Group (+11.6%), Raffles Medical Group (+10.8%), Q & M Dental Group Singapore (+7.8%), TalkMed Group (+4.9%), and Singapore O&G (+4.4%). These five healthcare plays have averaged a total return of 7.9% in the MTD, bringing their 2018 year-to-date and one-year total returns to -2.4% and -8.5% respectively.
Thomson Medical Group
Thomson Medical, one of the latest additions to the healthcare plays on SGX, is Singapore’s second-largest healthcare services provider with a market capitalisation of more than S$2 billion. Previously known as Rowsley Ltd, it began trading on SGX Mainboard under its new name on 30 April 2018. Rowsley made its foray into the healthcare sector last July when it acquired stakes in Thomson Medical Pte Ltd and TMC Life Sciences (TMCLS) Bhd from its controlling shareholder, Lim Eng Hock.
Established in 1979, Thomson Medical is Singapore’s largest private provider of healthcare services for women and children. It owns and operates the iconic Thomson Medical Centre, and a network of specialist medical clinics and facilities in the city-state.
TMC Life Sciences is a multi-disciplinary healthcare company listed on Bursa Malaysia. It operates Thomson Hospital Kota Damansara (formerly known as Tropicana Medical Centre), a tertiary hospital located in Kota Damansara, and the award-winning TMC Fertility Centre, which is the industry leader in assisted reproduction in Malaysia.
TMC Life Sciences also owns Thomson Iskandar Medical Hub, which is adjacent to Vantage Bay Healthcare City in Iskandar Malaysia. Sited on freehold waterfront land in Johor Bahru’s City Centre, Vantage Bay Healthcare City is conceived as a first-of-its-kind integrated medical, education and wellness hub.
The Group also has a multi-disciplinary real estate business, which encompasses design and engineering, hospitality, property development and investment, with assets located in UK and Asia. As previously announced, it continues to explore options to divest its real estate business.
For the three months ended 31 March 2018, Thomson Medical reported financial results pertaining to its real estate business only. Its real estate operations saw a 9% year-on-year decline in revenue to S$20.6 million, while overall losses widened to S$6.81 million from S$1.74 million.
Financials for the healthcare business will be reported for the second quarter ended 30 June 2018. Moving forward, the Group will focus on its healthcare business, and its existing real estate business will be grouped under a new brand called RSP Holdings.
The tables below detail the 18 healthcare services providers listed on SGX, sorted by market capitalisation. Click on the stock name to view its full profile in StockFacts.
Source: Bloomberg & SGX StockFacts (data as of 25 July 2018).
*Note: The periods used to measure the total returns of China Medical Intl is as follows: 1M return (06 June 2018-10 July 2018); 3M return (23 April 2018-10 July 2018); YTD return (29 Dec 2017-10 July 2018); 1Y return (10 July 2017-10 July 2018); 3Y return (09 July 2015-10 July 2018)
Five Best-Performing Healthcare Service Providers Avg 8% MTD Return