TMC Life Sciences Bhd recorded a new 52-week high recently touching 78 sen on Feb 7. In just over 6 months, the counter had appreciated some 23.4% to close at 76 sen on Feb 9.

Based on technical charts, TMC Life pushed above the 75 sen resistance level, which likely indicates the return of buying interest with signs of near term upside momentum may continue.

This is a good sign after having slumped to a low of 54 sen in March 2023. Share price is moving upwards after a good set of quarterly results. This has somewhat helped prevent a massive drop in share price after the company said it has recently suspended its group chief executive officer Wan Nadiah Wan Mohd Abdullah Yaakob.

TMC Life reported a sharp rise in year-on-year quarterly earnings amid a recovery of its fertility business. Its net profit jumped 164.55% to RM14.52 million for its second quarter ended Dec 31, 2023 (2QFY2024), from RM5.49 million a year earlier.

The company also saw an increase in capacity at Thomson Hospital Kota Damansara (THKD) and higher interest income.

Revenue increased 27.87% to RM93.78 million, from RM73.34 million in 2QFY2023. On a quarter-on-quarter basis, TMC Life’s net profit dropped 4.07% from RM15.14 million in 1QFY2024 due to higher staff costs for additional bed openings at THKD.

Revenue rose marginally by 1.46% from RM92.44 million on the back of higher fertility business revenue. For the first six months of FY2024, the group’s net profit rose to RM29.66 million from RM11.72 million a year ago.

This was on the back of higher revenue which rose 28.24% to RM186.22 million from RM145.21 million. Moving forward, TMC Life said the increased capacity at THKD and recovery of its fertility business are expected to contribute to the group's growth.

Two days prior to the results announcement, TMC Life said Wan Nadiah was suspended to facilitate an internal disciplinary process related to allegations stated in a show cause letter issued to her. The group, however, did not disclose the allegations.

All it said was "immediate disclosure of the facts or circumstances regarding the suspension would prejudice the outcome of the disciplinary process". The upside would hinge on the outcome of the disciplinary process.

As long as it does not affect the integrity of its good fundamentals, TMC Life would likely to continue to move upwards.