Dow Jones received a payment from EQS/DGAP to publish this press release.
EQS-News / 30/10/2017 / 07:00 UTC+8
*[FOR IMMEDIATE RELEASE]
/*
*CMB International: Union Medical Healthcare at Attractive Valuation *
*Diversified Business Segments to Facilitate Cross-selling
Prudent Expansion to Foster Long-term Development*
(27 October 2017, Hong Kong) CMB International issued a research report,
pointed out that *Union Medical Healthcare Limited* ("Union Medical
Healthcare" or the "Company"; together with its subsidiaries, the "Group",
SEHK stock code: 2138), as the largest aesthetic medical service provider in
Hong Kong, the Group recorded a strong growth in revenue in FY2017, with a
better profitability and ROE over peers. Management guided that the net
profit growth rate will be in line with revenue growth rate in FY18/FY19,
which is expected to be above 20%. The valuation of the Group is attractive
in view of its better growth rate in revenue and net profit.
According to CMB International, the Group has taken a more prudent approach
on expansion, which would be an adoptable strategy for long-term
development. The full time registered practitioners increased from 23 in
FY2016 to 44 in FY2017. The average utilization rate of its Hong Kong
clinics has already reached its optimal rate of 60%-70%. The Group has
planned to establish 1-2 aesthetic medical clinics each year in first and
second tier cities in China and prefers forming joint ventures with local
established aesthetic medical players with customer base and licenses.
Furthermore, CMB International indicated that medical tourism has become a
major growth driver for the Group. In FY2017, revenue from PRC clients was
HK$241.2 million and accounted for 25% of total revenue, representing a
Y-o-Y growth of 9 percentage points. Of which 92% came from medical tourists
in Hong Kong. The Group has its in-house travel agent in cope of growing
demand of medical tourists. Besides, the PRC clinics also refer clients to
Hong Kong. The Group expected the proportion of revenue from PRC clients to
increase to 30%-40% in FY2018.
*Mr. Eddy Tang, Chairman, Executive Director and Chief Executive Officer of
Union Medical Healthcare* said, "Union Medical Healthcare has been
dedicating in expanding our scope of services for diversity. The Group's
cross-selling capabilities has been proven from the synergistic effect that
was being created. Our outstanding sales performance is a testimony to our
insightful operative strategies of offering one-stop medical, health and
beauty services. We will continue to capture market opportunities actively
whilst adopting a prudent expansion strategy, as to strengthen the Group's
leading position in the market for aesthetic medical services to generate
better returns for our investors."
- End -
*About Union Medical Healthcare Limited*
Union Medical Healthcare is principally engaged in the provision of one-stop
aesthetic medical, beauty and health management solutions with 46 clinics
and servicing centres across Hong Kong, the PRC and Macao as at 30 September
2017. In 2016, the Group obtained the Hong Kong Top Service Brand and opened
re:HEALTH, a one-stop health management centre, to provide a full range of
services and products, including comprehensive health screening, health
product and health management services. The Group is the largest aesthetic
medical service provider in Hong Kong in terms of revenue. The Group ranked
first in Hong Kong from 2012 to 2016 in terms of the number of aesthetic
injection procedures performed involving utilization of the top-six
revenue-generating aesthetic medications in Hong Kong; and was the Black
Diamond Provider of the transparent orthodontic device for teeth alignment,
Invisalign(R), in 2015 and 2016. The Group has successfully built DR REBORN,
a well-recognized brand in Hong Kong, with the reputation of being a premier
provider of aesthetic medical services in Hong Kong.
*For further information, please contact:
iPR Ogilvy & Mather*
Callis Lau / Molisa Lau / Maggie Chui / Francesca Yeung
Tel: (852) 2136 6952 / 2136 6953 / 2136 8059 / 3920 7639
Fax: (852) 3170 6606
Email: umh@iprogilvy.com
30/10/2017 Dissemination of a Financial Press Release, transmitted by EQS
Group.
The issuer is solely responsible for the content of this announcement.
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(END) Dow Jones Newswires
October 29, 2017 19:02 ET (23:02 GMT)
