Healthcare Stocks Analysis 1 – Credit Control

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Healthcare Stocks Analysis 1 – Credit Control

The following healthcare stocks are based on their 2008 Annual Report. This is my personal analysis based on their credit control, on an average of how many weeks they take to collect customers’ money or their trade receivables.
 
Ranking :
1) Thomson Medical Centre – 3.85
2) Healthway Medical Group – 6.24
3) Raffles Medical Group – 6.45
4) AsiaMedic Ltd – 7.13
5) Parkway Holdings – 7.6
6) Pacific Healthcare – 10.9
7) Medtec International – 11.5

8) Health Management International (HMI) = 21.4

 
1. Pacific Healthcare (Ranked No.6)
Current Price : $0.110
http://www.pachealthholdings.com/

An integrated healthcare provider offering a comprehensive range of healthcare services under Special Healthcare Division (clinical services and facilities management) and Primary Healthcare Division (general practice medicine, dentistry, eldercare and wellness services).

A/C Receivable = $17,064,000
Sales Revenue = $81,225,000

Their accounts receivable turnover ratio is 4.76 times, average sales credit week is 10.9 weeks. It takes about 10.9 weeks to collect money from their sales.

2. Parkway Holdings (Ranked No.5)
Current Price : $1.65
http://www.parkwayholdings.com/

The Group operates Gleneagles Hospital, Mount Elizabeth Hospital, East Shore Hospital and Shenton Medical Group. The Gleneagles chain of hospitals are now in Singapore, Jarkarta, Surabaya, Medan, Kuala Lumpur, Penang, Calcutta and Colombo. It has a specialist Heart Hospital in London.

A/C Receivable = $137,378,000
Sales Revenue = $945,386,000

Their accounts receivable turnover ratio is 6.8816 times, average sales credit week is 7.6 weeks. It takes about 7.6 weeks to collect money from their sales. okie… looks like they seems more in control than Pacific Healthcare.

3. Raffles Medical Group (Ranked No. 3)
Current Price : $1.01

http://www.rafflesmedical.com

One of Singapore’s leading private integrated healthcare providers with a network of 65 private clinics, offering general practice (GP), dental and specialist healthcare services, X-ray and diagnostic services, healthscreening and laboratory testings. The Group also owns and operates a tertiary care private hospital, insurance services and a consumer healthcare division.

A/C Receivable = $24,901,000
Sales Revenue = $200,769,000

Their accounts receivable turnover ratio is 8.063 times, average sales credit week is 6.45 weeks. It takes about 6.45 weeks to collect money from their sales. okie… looks like they seems more in control than Pacific Healthcare and Parkway Holdings over their credit control.

4. Health Management International (HMI) (Ranked No.8 -Last)
Current Price : $0.11
http://www.hmi.com.sg/

Healthcare division of the Group owns and manages 2 hospitals in Malaysia, the Mahkota Medical Centre in Malacca and the Regency Specialist Hospital in Johor. Its education division owns and manages the HMI Institute of Health Sciences in Singapore.

A/C Receivable = $18,351,516
Sales Revenue = $44,525,424

Their accounts receivable turnover ratio is 2.43 times, average sales credit week is 21.4 weeks. It takes about 21.4 weeks to collect money from their sales. okie… looks like their credit control very much out of hand – compared to Pacific Healthcare, Parkway and Raffles.

5. Thomson Medical Centre (Ranked No. 1 – First)
Current Price : $0.575
http://www.thomsonmedical.com.sg/

The Group’s principal activities include that of hospital operations and ancillary services. The hospital operations provide primary, secondary and tertiary healthcare with focus in the areas of O&G and paediatric services. Its ancillary services include fetal assessment services, diagnostic laboratory services, disgnostic imaging services, anti-aging services, healthcare screening services and parentcraft services.

A/C Receivable = $4,457,000
Sales Revenue = $60,264,000

Their accounts receivable turnover ratio is 13.5 times, average sales credit week is only 3.85 weeks. It takes about 3.85 weeks to collect money from their sales. Wow… this is quite impressive of their credit control compared to the rest of the medical stocks in Singapore. But again if you think about it, their operations is much smaller and local compared to other medical stocks.

6. Medtecs International Corp Ltd (Ranked No. 7)
Current Price : $0.105
http://www.medtecs.com/

The Group is an integrated healthcare services provider and original product manufacturer (OPM) of a wide range of medical consumables for large multinational healthcare distributors, pharmaceutical companies and hospital groups in the US and Europe. Major product lines include linen, hospital apparel, hospitality apparel and bandages. The Group also acts as agent to distribute other branded medical devices in Asia Pacific, including medical supplies and equipment such as wheel chairs, syringes, gauzes, digital thermometers, nebulizers, blood pressure monitors, etc.

A/C Receivable = $17,859,000
Sales Revenue = $80,707,000

Their accounts receivable turnover ratio is 4.52 times, average sales credit week is about 11.5 weeks. It takes about 11.5 weeks to collect money from their sales. This is still better than Healthway Management International.

7. AsiaMedic Ltd (Ranked No.4)
Current Price : $0.065
http://www.asiamedic.com.sg/

AsiaMedic provides ambulatory healthcare services in radiology, diagnostic imaging, ophthalmology, cosmetic surgery and health screening.

Sales Revenue = $12,256,277
A/C Receivable =$1,680,814

Their accounts receivable turnover ratio is 7.29 times, average sales credit week is about 7.13 weeks. It takes about 7.13 weeks to collect money from their sales. Still looks okie..

8. Healthway Medical Corp(Ranked No.2)
Current Price : $0.115

One of Singapore’s private outpatient medical service providers with a network of more than 80 clinics. The Group operates 11 medical practice groups, offering healthcare services such as family medice, dentistry, paediatrics, orthopaedics, sports medicine, aesthetic medicine, TCM and healthcare benefits management.A/C Receivable = $9,712,000
Sales Revenue = $80,903,000

Their accounts receivable turnover ratio is 8.33 times, average sales credit week is about 6.24 weeks. It takes about 6.24weeks to collect money from their sales. It is just behind Thomson Medical Group.

Compare the healthcare stocks based on their net profit margin
http://bealovecat.blogspot.com/2009/06/healthcare-stocks-analysis-2-gross.html

Some of the general information are derived from the following blog:
http://knowledge-deposits.blogspot.com/2009/04/healthcare-stocks-singapore-companies.html

I think it is very useful website.

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