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20-08-2019, 10:12 PM
(This post was last modified: 20-08-2019, 10:21 PM by dreamybear.)
In its IPO late 2018, MediNex Limited offered 30m Placement Shares comprising 26m New Shares and 4m Vendor Shares at $0.25 each for a Catalist listing. However, there was no public offering.
Prior to its IPO, it embarked on a series of acquistion including Nex in 2017 and AccTax, Patceljon & Jo-L in 2018.
Medinex has 3 business segments, namely
(1) Medical Support Services (35% of revenue*)
- provide customised and value-added support services to clients in primary/ secondary healthcare sectors comprising general practitioners and specialists
- provide turnkey solutions as well as detailed and strategic advice to general practitioners and specialists on establishing clinic facilities
(2) Pharmaceutical Services (46% revenue*)
- procure medical and pharmaceutical products from authorized distributors for customers in Singapore, .e.g Augmentin, Arcoxia, Anarex Panamol. These are quite familiar medicine. Its major suppliers include Zuellig Pharma Pte. Ltd & DKSH Singapore Pte. Ltd, which are the local exclusive authorised distributors for a number of proprietary drugs. In HY2018, purchases of pharmaceutical products from these 2 companies accounted for approximately 53.09% of the Group’s total purchases. However, the group does not enter into long-term contracts with the 2 companies.
(3) Business Support Serivces (19% of revenue*)
- Provide a spectrum of business support services to assist clients to benefit from operational and cost efficiencies generated from economies of scale
- Serve clients over a variety of industries, including but not limited to food and beverage, retail, education and beauty
*Based on AR2018
Its key strengths include :
- long-standing & established relationships with customers
- cultivated extensive network and familiar with business/regulatory landscape & requirements of healthcare industry
However, it is also subjected to regulations / permits and licences with expiry dates(IPO Prospectus pg 99/109).
It is in net cash position(based on 1H2019 results) but leases properties rather than own them(IPO prospectus pg 110 & 111). One of its key shareholders include listed company HC Surgical Specialists Ltd.
I think this is a relatively straight forward business but to grow its earnings, it has to either win more customers(for medical / business support services) or explore additional acquisitions, joint ventures or strategic alliances.
IPO Prospectus : https://links.sgx.com/FileOpen/(04a)%20O...ileID=5970
AR 2018 : https://links.sgx.com/FileOpen/Medinex%2...eID=553226
1H2019 : https://links.sgx.com/FileOpen/Medinex_H...eID=574758
Prior to its IPO, it embarked on a series of acquistion including Nex in 2017 and AccTax, Patceljon & Jo-L in 2018.
Medinex has 3 business segments, namely
(1) Medical Support Services (35% of revenue*)
- provide customised and value-added support services to clients in primary/ secondary healthcare sectors comprising general practitioners and specialists
- provide turnkey solutions as well as detailed and strategic advice to general practitioners and specialists on establishing clinic facilities
(2) Pharmaceutical Services (46% revenue*)
- procure medical and pharmaceutical products from authorized distributors for customers in Singapore, .e.g Augmentin, Arcoxia, Anarex Panamol. These are quite familiar medicine. Its major suppliers include Zuellig Pharma Pte. Ltd & DKSH Singapore Pte. Ltd, which are the local exclusive authorised distributors for a number of proprietary drugs. In HY2018, purchases of pharmaceutical products from these 2 companies accounted for approximately 53.09% of the Group’s total purchases. However, the group does not enter into long-term contracts with the 2 companies.
(3) Business Support Serivces (19% of revenue*)
- Provide a spectrum of business support services to assist clients to benefit from operational and cost efficiencies generated from economies of scale
- Serve clients over a variety of industries, including but not limited to food and beverage, retail, education and beauty
*Based on AR2018
Its key strengths include :
- long-standing & established relationships with customers
- cultivated extensive network and familiar with business/regulatory landscape & requirements of healthcare industry
However, it is also subjected to regulations / permits and licences with expiry dates(IPO Prospectus pg 99/109).
It is in net cash position(based on 1H2019 results) but leases properties rather than own them(IPO prospectus pg 110 & 111). One of its key shareholders include listed company HC Surgical Specialists Ltd.
I think this is a relatively straight forward business but to grow its earnings, it has to either win more customers(for medical / business support services) or explore additional acquisitions, joint ventures or strategic alliances.
IPO Prospectus : https://links.sgx.com/FileOpen/(04a)%20O...ileID=5970
AR 2018 : https://links.sgx.com/FileOpen/Medinex%2...eID=553226
1H2019 : https://links.sgx.com/FileOpen/Medinex_H...eID=574758