The Board of Directors of Adventa wishes to announce that its wholly-owned subsidiary, Sun Healthcare (M) Sdn. Bhd. ("Sun Healthcare") had signed a long term exclusive Distribution Agreement with Crawford Healthcare Ltd. ("Crawford"), a leading advanced medical device company in the UK. Sun Healthcare will take over the exclusive sales and marketing of all Crawford’s woundcare products in Malaysia and the Asean countries, leveraging on its network of distribution in the region.
Further the Company's announcement on 4 October 2013 ("Previous Annoucement"), the Board of Directors of Adventa wishes to append herewith the following additional information:- 1) Crawford Healthcare Limited ("Crawford") is a wholly-owned subsidiary of Crawford Healthcare Holdings Limited, a company incorporated in England and Wales. Its principal activities are engaged in the supply and distribution of dermatology and woundcare products covering a broad range of skin conditions.
2) The long term exclusive Distribution Agreement referred to in the Previous Announcement covers an initial term of five (5) years, thereafter subject to review for renewal.
3) The exclusive distributorship of Crawford’s woundcare products in Malaysia and the Asean countries by Sun Healthcare (M) Sdn. Bhd. include a range of wound care solutions designed to manage and absorb exudate, manage wound infections, debride and deslough wounds, and aid wound healing. These products includes KerraMax Care , KerraMax Care Boader, KerraLite Cool, KerraPro, KeraFibre, KerraFoam, Kerraped Planter Ulcer, KerraPed and ExSalt range.
healthcare product and services is in demand, latest IHH qtr report indicate strong uptrend demand to existing & new hospitals for more healthcare services to be provided, the mean time ALAQAR healthcare reit reported increased revenue & profit. ALAQAR 5 years turnover data a strong evidence that this industry is growing real fast.
asserted (summarized) from KPJ latest report page 15:
The Malaysian segment revenue for 9 months ended 30 September 2013 has increased by 5%... higher revenue reported is due to the increase in revenue of the existing hospitals and newly open hospitals in the group.
The Indonesian segment revenue of RM28.5 million for 9 months ended 30 September 2013 is 75% higher than the revenue reported in 2012
The Aged Care Facility segment revenue for 9 months ended 30 September 2013 is RM27.6 million, 35% higher than the revenue reported in 2012
The revenue from Support Services segment of RM433.0 million for 9 months ended 30 September 2013 is 10% higher, compared with revenue from the same period in 2012
The healthcare industry is expected to enjoy continued growth... drivers are mainly from population growth, rapid ageing, the rising of middle income and health tourism. The Group will continue to strengthen its presence in Malaysia and Asia by continually building its capacity through the expansion of existing hospitals as well as building new hospitals.
The healthcare industry has become a powerful engine of economic growth, due to demographic shifts such as extended longevity and a rise in lifestyle diseases such as hypertension and cardiovascular ailments and diabetes. Malaysia’s spending on healthcare, at 5 percent of gross domestic product (“GDP”), is above our regional peers, and public spending is a disproportionate contributor to healthcare costs. Currently, the sector contributes to RM15 billion in gross national income (“GNI”).
Malaysia aims to grow three sub-sectors within healthcare: pharmaceuticals, health travel and medical technology products. There is significant opportunity to move from a net importer to a significant player in the RM422 billion prescription and pharmaceutical drug industry. Malaysia will also develop the more profitable medical technology sub-sectors such as medical devices, diagnostic equipment and healthcare information technology. Finally, Malaysia is aiming to bounce back in the attractive health travel sector to match the growth of its neighbours Singapore and Thailand. The Government’s goal is to migrate from primarily a lower-value product strategy to a more comprehensive product, services and asset strategy that better leverages our competencies.
The Government aspire to generate RM35 billion incremental GNI contribution to reach RM50 billion by 2020. The Healthcare National Key Economic Areas (“NKEA”) is also targeting to welcome 1 million health travellers and conduct 1,000 clinical trials, all of which will result in approximately 181,000 new jobs.
MIDF research reaffirmed high growth for healthcare product & services:
Due to rising demand for quality healthcare, government and private capital spending in this area will increase further in 2014. Government expected to allocate 22.1 billion ringgit for total health spending, private sector is expected to be 32.9 billion ringgit.
This will bring total allocation of 55 billion ringgit into the field, analysts expect this will further increase to 65.9 billion ringgit in 2016. During the 2011-2016 five-year NET annual compound growth rate (CAGR) is equal to 8.7%.
Medical equipment is potential "gold mine", the value in the field to feed 5.3 billion ringgit in 2015. Medical equipment accounting for 25% of the market share of healthcare globally.
To meet market demand, Malaysia healthcare providers are taking expansion plans over the next five years. Analysts believed continued good growth momentum in the field of health care.
adventa business NET MARGIN since pn17 is average 15% with last quarter reported 18%, and foreseeable continue to growth with 30m cash in hand, total borrowings only 12m.
this is the cheapest entry to co. with regional healthcare product & services business. yr $ yr choice!
Low Chin Guan, CEO of Adventa Group, added : “Leveraging on our regional reach especially in the ASEAN countries, our Sales and Distribution arm Sun Healthcare is poised and fully committed to bring the best of wound care technology to the region. The group strongly believes and invests in continuous education for the healthcare personnel, patient and Care givers. This works successfully with good products and with the Crawford advanced wound care range, it will be repeated.
Our business in hospital supplies and devices has achieved credible savings and cost effective outcomes to our customers, and that gives us the advantage in partnering innovative companies like Crawford.”
SOURCE: Crawford Healthcare is a rapidly-growing international company dedicated to developing innovative treatments and effective dermatological, woundcare and diagnostic products for the care and repair of skin. Skin is the largest organ of the body and plays a vital role in defending us from the outside world.
Adventa subsidiary Lucenxia, a company that provides automated home dialysis treatment using Peritoneal Dialysis (PD), a cost effective and better dialysis treatment compared to haemodialysis and is already carrying out tests and evaluations with hospitals in Malaysia.
Adventa said that PD was the preferred dialysis method in Asian countries although Malaysia is a late adopter of this method.
“In Malaysia alone, the dialysis business is estimated to be worth around RM800mil and is growing at a rate of 12% a year,” Adventa said.
My logic is quite simple, ADVENTA will want to maintain its listing with this major endorsement by govt for ETP projects. It's subsidiary has been endorsed by the govt to provide the automated home dialysis system and as far as I know this is a pretty niche technology so its margins will be high. In fact it will need more funds to support its capex to fulfill the orders. I m thinking this could be achieved by staying listed and doing rights issue or private placement later down the road... valuations are expensive now, but there could be some restructuring/acquisitions that could boost its earnings once it announces the restructuring plan.... Buy at your own risk... This is my personal view...
“In Malaysia alone, the dialysis business is estimated to be worth around RM800mil and is growing at a rate of 12% a year,”
apart from what u juz said, u should also look into detail if the company runs exclusive services, and the industry has great demand to that. financial indicators r static, biz is not. expensive or not depend how much u know about the sector.
of course if the growth is great, the P/E will eventually be justified... that is what I m hoping for too... No doubt there will be excellent growth in healthcare segment judging by the valuations of some healthcare counters today like IHH and KPJ, however once more information is available we still need to go down and analyze how many % of that market will Adventa capture ? How much revenue / profit will be realized ? This is the question mark now.. My opinion is that with its capabilities which are unique and judging from its high net margins, it does have a great economic moat.... am heavily invested in this one as it could end up being a cheap entry into a healthcare stock for me by entering before it exits PN17.... keeping fingers crossed !
fyi, m'sia alone, Health CPI: 2009 (+2.3), 2010 (+1.6), 2011 (+2.7), 2012 (+2.0), this year up to Nov already (+1.9). ASEAN countries demand for healthcare products & services r ever growing.
member41, that is what I heard... but of course no guarantees, buy at your own risk :) btw, I just read the star yesterday, there seems to be a shortage of dialysis centers in Malaysia especially in rural areas... govt is also planning to promote the Peritoneal Dialysis to some patients... this would be good for Adventa...
member41, the last thing u wanna worry about adventa is pn17. checkout the latest qtr report, an evidence of strong growth, the Peritoneal Dialysis is target for commercial launch in 2014
excludes gain on disposal of investment in subsidiaries and other income, sales increased by 93% yoy and pbt increased 160% of RM5.63 million
"The sterilisation service provider business did particularly well with increased revenue from improved irradiation volume. Electron Beam Sdn. Bhd. further expanded its potential customer base into device manufacturers and specialty sterilisation. The increased capacity and better delivery record help our customers increase their forecast and realised volumes.
The medical supplies business under Sun Healthcare (M) Sdn. Bhd. continued growing helped by exports to regional countries. The export markets OPENED NEW REVENUE markets and allow more cost effective procurement opportunities.
Lucenxia (M) Sdn. Bhd. (“Lucenxia”), the subsidiary involved in home Peritoneal Dialysis is not yet commercially operational but has gone through a clinical trial with good positive results. It is now in the process of a larger hospital conducted home trial, which is scheduled for completion in Q2 2014. On 17 Sept, the Economic Transformation Program under PEMANDU adopted Lucenxia as the Peritoneal Dialysis ETP. With this adoption, Lucenxia is cleared for strong business development assistance from the government."
wow based on the 9 months results, the PBT margins for their sterilization businesses (Electron Beam) is damn high (>50%)... I wonder what is the margin for the Peritoneal Dialysis... cause the major growth is going to come from here once trials are completed.
today's nanyang press provide an good overview of medical tourism industry among S.E.A region, take a look... plenty of room to grow esp m'sia. stable counter to invest in, 30.1m cash in hand, 12.6m total borrowings only. there is still 12.6m left from the glove disposal for future business expansion opportunities (pg14). yr $ yr choice!
On behalf of the Board of Directors of Adventa, AmInvestment Bank Berhad is pleased to announce that, on even date, an application has been submitted to Bursa Malaysia Securities Berhad to uplift Adventa from the classification of “Affected Listed Issuer” under Practice Note 17 of the Main Market Listing Requirements (“Listing Requirements”) and a waiver from complying with Paragraph 8.04(3)(a) of the Listing Requirements.
Lucenxia Intellis Programme To Offer Kidney Patients Freedom To Undergo Dialysis Treatment At Home
KUALA LUMPUR, Dec 24 (Bernama) -- Lucenxia (M) Sdn Bhd, a subsidiary of Adventa Bhd, offers kidney patients the freedom to undergo dialysis treatment at patient's home, while they are asleep, through its Lucenxia Intellis programme.
Lucenxia Intellis is the Intelligent Automated Peritoneal Dialysis and has been endorsed as a National Key Economic Area Healthcare Entry Point Project under the Economic Transformation Programme.
Last year, there were 28,590 patients receiving dialysis in Malaysia and 91 per cent of these patients were on hemodialysis and the rest were on peritoneal dialysis (PD).
"The cost of kidney dialysis is estimated at more than RM35,000 a year as patients need to receive treatment about 13 times a month, 4 hours per session.
"PD gives patients more freedom as the therapy can be administered at home. The patients just need to undergo a training on how to use the machine, then after they will be able to do it at home easily on themselves," Lucenxia managing director Low Chin Guan said in a statement issued Tuesday.
Lucenxia Intellis offers better patient treatment modality and quality of life to kidney patients, as they are able to offer accessible, personalised, and intelligent PD through a patient-centric care and real-time support programme.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
houseofordos
936 posts
Posted by houseofordos > 2013-10-01 17:03 | Report Abuse
ooh.. down 10% today.. fast up fast down... again.. trading this stock has been profitable.. time to consider to re-enter if 80sen can hold...