https://www.thestar.com.my/business/business-news/2021/05/24/lyc-healthcare-bets-on-ma-to-drive-growth

LYC Healthcare bets on M&A to drive growth

PETALING JAYA: LYC Healthcare Bhd, which is known for its confinement centres, is embarking on the next phase of growth by diversifying into functional food ingredients supply.

For years, LYC Healthcare has been focusing on growing its business organically, mainly in the healthcare industry, including a confinement centre, family clinic, fertility centre and senior living homes that involve high capital expenditure.

The group has been loss-making since 2017 as most of its businesses were in the gestation period.

However, this is about to change as LYC Healthcare has been making a slew of acquisitions since last year that also come with a profit guarantee.

The latest one is the proposed acquisition of 70% in Aqurate Ingredients Intl (M) Sdn Bhd for RM36.40mil cash last week.

Aqurate supplies functional food and health ingredient solutions for the nutraceutical industry, including functional foods, foods for medical purposes and food supplements. It is also involved in the pharmaceutical, healthcare and cosmeceutical industries.

Speaking to StarBiz, LYC Healthcare group chief executive officer-cum-managing director Sui Diong Hoe hopes to turn around the company to profitability through its recent acquisitions.
“Over the past few years, LYC Healthcare has been investing aggressively in organic growth.
“As a result, we have incurred a lot of start-up costs and our businesses are still in the gestation period, ” he said.

“Last year marked a change in our strategy as we acquired two profitable Singapore medical centres, HC Orthopaedic Surgery and T&T Medical Group, and an associate stake in ANOC in Malaysia.

“These acquisitions will help accelerate our path to profitability while at the same time ride on the growth in healthcare-related services with an ageing population in Malaysia and Singapore, ” he added.

Last year, LYC Healthcare bought a 51% stake T&T Medical Group Pte Ltd, which comes with a profit guarantee of SG$1.3mil (RM4.04mil) and SG$1.7mil (RM5.3mil) over a three-year period until 2024.

Its recent acquisition of Aqurate also comes with a profit guarantee portion of RM19.5mil for three financial years, which would boost LYC Healthcare’s bottom line.

LYC Group took over the listing status of Mexter Technology Bhd five years ago and has yet to report any profits.

Sui said the acquisition of Aqurate is to capture the growing demand for supplements and a renewed focus on preventive healthcare due to the Covid-19 pandemic. He pointed out that more Malaysians were buying supplements such as probiotics to strengthen their immune system and complete nutrition to fulfil their daily nutrient intake.

“Other factors leading to growth in the functional food ingredient business are Malaysia’s ageing population, which increases the needs for products that supplement the intake of vitamins, calcium and other supplements, and this has led to change in consumer preferences, ” he said.

For comparison purposes, listed companies that are in the functional food ingredients category include Nova Wellness Group Bhd and Bioalpha Holdings Bhd.

On its current business, Sui said the group was continuing with its expansion with the focus of achieving economies of scale.

“We believe most of our organic healthcare expansions are reaching maturity stage and will start to become operationally profitable in the coming year, ” he said.

For this year, the group is expanding its confinement centre in Johor that would increase its total bed numbers to 182 from 122 beds.

It is also planning another 70-bed expansion to capture the Johor and Singapore market.
At the moment, LYC Healthcare operates three confinement centres in the Klang Valley.

“As the commercial market is being severely impacted due to Covid 19, we have been approached by several property developers or owners to consider their properties and are exploring new business models which allow us to become confinement centre operators for their properties in exchange for management fees.

“We believe this model will allow us to minimise our capital investment outlay and achieve better returns with faster investment payback, ” Sui said.

1.15 soon

Cimb issued report on kawan food. Tp 3.65

At the moment, neither u or i know if he will take up more or not (ie up to the threshold of 5% substantial shareholder). If i was him i would take up abit more since placement price is fixed at 86 sen vs current price of >rm1.00/share. Anyways, we know that the company is backed by prominent people including some interesting shareholders. They may see something we dont.

Will touch further highs in coming days i think.

Wait for the next kicker, the announcement on the private placement taker. Could well be brahmal adding up his stake further!

Temporary fall before resurgence!

Feel people like brahmal wont invest just for 30-40% gain. Surely they are looking at beyond that and you should join the ride!

No brainer, annualize p/e is now only ~16x. Surely now we see why company been buying back shares. Accumulate!

Guys check out Mulpha Land, Brahmal is one of their top 10 shareholders (Latest 2014 report). Buy before everyone else does!

move on to the next counter. Mulpha Land! Brahmal is one of the top 10 shareholders. Check out the annual report

Looks like my source is accurate. Time to accumulate!

Check mulpha land annual report. Brahmal is a shareholder of the company. New stock to invest!

Check mulpha land annual report. Brahmal is a shareholder of the company. New stock to invest!

Check mulpha land annual report. Brahmal is a shareholder of the company. New stock to invest!

Alrdy said, cfo leaving is a red flag. Nak cakap its normal part of busines? While u listen to their shitty advice, they are dumping the stock behind your back

Wtf people, use your brains plz, cfo go away is a big red flag man. You cant be emotional n not be rational!

If u read the follow up announcement, the major shareholder of the indo company is dp capital, which used to own alot ifca shares. Now they are no longer substantial shareholder thats why can pass through without being classified as related party transactions. Smells fishy and rotten! Maybe thats why people dump the stock.

Relax bro, whole market down. Will rebound

http://rhbosk.ap.bdvision.ipreo.com/NSightWeb_v2.00/Handlers/Document.ashx?i=75f69151e4ff401080c51de3bda33623

The effects of private placement has already been reflected in eps that was announced. Secondly the rhb analyst provided a fully diluted eps at aroubd 1.90 something, which is still an upside from current prices. Suggest you read the report in full. Eps definitely is being diluted i agree with u but from what i read the analyst has accounted for it. But if u disagree feel free to sell your shares i suppose

@sohai, sorry ah bro, analyst eps forecast for fy15 is 23 sen. If u annualize 1Q15 eps you get 23.9 sen... Think ur maths wrong bro...

Lets wait and see la if im right

Sorry, im aware of that changes. I meant the off market sale, my sources say it was brahmal that bought. The new placement, he may even buy further. Lets wait for annual report and see if this is true

Inari also he sell la, yet the share price rose. Dont make a big fuss out of the selling. He still owns more than 36 million shares post disposal also...

Rumours are a big shareholder will emerge!

Looking for explosive growth in earnings as a catalyst

mm sounds interesting. Suppose we shall say RAYdiant! Thanks for sharing

Volume traded at that price range you mentioned was small la, unlikely they have collected enough my friend

Somethings happening, volume is picking up

Good results coming, hopefully will get analyst coverage too!

TengkuFaisal: You will be stupid to think GST will be abolished. The amount of cost it will bring to businesses that just recently converted softwares/processes etc, not to mention impact it will have on foreign investors sentiment.

results coming this week i feel

Taking forever this quarterly results mann

Today just proves all the "experts" that claim they can predict the share price movement are no better than the other man on the street. MYEG naik they will keep quiet, when it goes down, they will give their in-depth analysis on why it will lose la..

Sorry bros that predicted the end of myeg..bla bla bla.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4723037

Random people suddenly appears with their "expert views"

Sell sell! Let me buy all!

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4720649

MYEG bought back ~RM1 million worth of shares

Come to papa! 47.5 sen!

The benchmark aluminium price is down 1.4 per cent today, the most of all base metals traded on the London Metal Exchange, after China cut export taxes on certain forms of the metal.

China will remove the 15 per cent export tax on aluminum-alloy rods and strips, China's Ministry of Finance said. It will also cut taxes on rare earths, tungsten, and molybdenum, Henry Sanderson writes.

The decision sent Shanghai-traded shares in the Chinese government-backed Aluminum Corporation of China (also known as Chalco) up by ten per cent to RMb9.55.

Earlier this year China abolished its quotas on rare earths, after losing a case at the World Trade Organization on the limits which were imposed in 2009.

Aluminium traded on the London Metal Exchange for purchase in three-months' time is down 1.4 per cent to $1,781 per tonne.

The price of the bendy metal has fallen 2.5 per cent on the London Metal Exchange this year amid a global glut that has been exacerbated by exports of the metal from China.

The world's largest producers of aluminium Rusal and Alcoa have said this year they are reviewing smelters for closures amid low prices.

@tripleiii, think must be the misunderstanding part la lol

What are the chance it drops to 2.70 today?

Sell first buy back later. Can snap back at a discount!

Last time TP3.90, u dont believe, not cut to more realistic price with still good upside, think its negative. Bit retarded right

Errrr...what about the capex money they pumped in?? You don't account for additional investments that has been put in? Not so logical bro...

Like to see how all the companies gonna complain now... no more additional fees...how will runners manage this then

Eh, this means MYEG income issue settled already la. Employees might aswell go via online!

http://www.theedgemarkets.com/my/article/aluminum-leads-metals-lower-china-manufacturing-contracts