Singapore Medical *Official* (SGX: 5OT)

Jupiter2017

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http://www.businesstimes.com.sg/com...kay-hian-starts-coverage-on-smg-with-buy-call
Broker's take: UOB Kay Hian starts coverage on SMG with 'buy' call
Fri, Jan 26, 2018 - 11:09 AM Navin Sregantan navinsre@sph.com.sg

ANALYSTS from UOB Kay Hian said Singapore Medical Goup (SMG) will "reap the fruits of acute deals made in prior years" as they initiated coverage on the stock with a "buy" call and a target price of S$0.83, a 31 per cent upside on its last closing price of S$0.63.
The analysts said SMG was the largest healthcare player catering to the premium market segment in Singapore and cited its ability to retain its clientele while targeting merger and acquisition (M&A) deals in medical technology and expanding the company's already broad range of medical expertise as reasons behind its call.
With 27 clinics in Singapore and a regional presence across Indonesia and Vietnam, SMG is a "one-stop platform and lifelong partner that has the ability to retain this niche segment", the analysts said.
The group's earnings-accretive acquisitions at undemanding valuations "should give investors comfort that barring exceptional circumstances, management will be prudent in making future acquisitions," they added.
UOB also highlighted that medical practitioners at SMG were well incentivised and aligned with shareholder interest, which they believe will help the company to expand aggressively, while keeping minority shareholders interests at heart.
SMG shares were trading flat at S$0.63 as at 10.44am on Friday.

price link: http://www.shareinvestor.com/fundamental/factsheet.html?counter=5OT.SI
 

Jupiter2017

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http://www.businesstimes.com.sg/com...roup-takes-stake-in-australian-ivf-specialist
Singapore Medical Group takes stake in Australian IVF specialist
Wed, Jan 31, 2018 - 9:24 PM Wong Kai Yi kaiyiw@sph.com.sg

CATALIST-LISTED Singapore Medical Group (SMG) has marked its foray into the Australian market with a stake in CFC Global, the country's fourth-largest in-vitro fertilisation (IVF) specialist.
The deal was made through a joint venture company, in concert with CHA Healthcare Co, a unit of Korean healthcare provider CHA Medical Group.
The joint venture company - CHA SMG (Australia) - will acquire a 65 per cent stake in CFC Global.
SMG has a 20 per cent equity interest in the joint venture company, which was created to explore and invest in Australia-based acquisition targets.
Upon completion of the deal, SMG will have an effective interest of 13 per cent stake in CFC - also known as City Fertility Centre - through this arrangement.
The deal's value was not disclosed in the press statement put out by SMG.
Executive director and chief executive of SMG Beng Teck Liang said the deal was made against the backdrop of rising growth in the global IVF market due to "delayed pregnancies among women, rising awareness pertaining to infertility, and the availability of favourable reimbursement systems".
"Looking ahead, we expect this strategic partnership to reap cross border synergies through technological knowledge share of best practices and an enlarged patient pool to drive referrals in countries such as Vietnam, where we continue to gain traction amid the rising demand for women's health," Dr Beng added.
Established in 2003, CFC owns and operates City Fertility Centre with seven clinics located in Brisbane, Melbourne, Adelaide, Sydney and the Gold Coast.
CFC's centres offer services like pre-IVF solutions such as intra-uterine insemination and ovulation induction, IVF, fertility preservation, family banking and genetic screening, among others.
According to SMG, CFC holds more than 10 per cent market share in Queensland, Victoria and South Australia, considered to be its key markets.
 
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