Post on 26-Jan-2022
transcript
Contents
Our Business
Our Competitive Edge
Corporate Developments
Growth Strategies
Financial Highlights
Summary
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Who We Are
Established in 1997
A leading primary healthcare services
provider in Malaysia Operates GP clinics with supporting diagnostic
services under Qualitas brand name
Network of 160 clinics across the country
More than 1 million patient visits annually
Established MNC client base
Regional network in India, Cambodia & New Zealand
Scaleable & replicable business model
Listed on SGX Catalist on 1 September 2008
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Shareholding Structure
Dato’ Dr Ameen
&
Mr Karim Dhala
(14.44%)
QH Sdn Bhd
(9.89%)
Qualitas Medical Group Limited
Commerce
Asset
Ventures (CAV) &
Commerce KPF
Ventures (CKPF)*
(26.55%)
Public
(48.63%)
Others
(0.49%)
* CAV is a wholly owned subsidiary of CIMB Group Sdn Bhd (CIMB Group), which in turn is a wholly
owned subsidiary of Bumiputra- Commerce Holdings Berhad (BCHB), a listed company on Bursa
Malaysia. CAV legally and beneficially owns 51.0% of the ordinary shares in CKPF.
As at 16 March 2009; extracted from Annual Report 2008
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Our Business Model
Doctor-led and doctor-governed
Network of doctor-shareholders
Focus on primary healthcare services
Outpatient services by GPs
One-stop higher-end clinics with a team of GPs
Prolonged care & monitoring of patients with chronic conditions
Health maintenance & general health screening and periodic
vaccinations
Equipped with supporting medical diagnostics services eg ECGs,
ultrasound and X-ray facilities
• Consistent clinic
décor and signages
• Staff uniforms
• Sales and marketing
materials
• Allows data input by
clinics to be
uploaded to regional
offices, corporate
HQs, centralised
purchasing services
and key customers
Our Business Model
Centralisation of Operations
Integrated
software
system
Centralised
Purchasing
System
Centralised
Billing
System
Centralised
Branding
• Efficiencies in
inventory management
• Bulk discounts
• Uniform distribution of
drugs through network
of clinics and
continuous availability
• Convenience and
ease to corporate
clients and MCOs in
administering health
benefits
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Our Malaysian Network
*As at 1 July 2009
Our Malaysia Network
160 clinics across the country
84 owned clinics
76 affiliate and associate clinics
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10
3
14
59
33
93 22
2
1
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Established Clientele of MNCs
More than 5,000 corporate clients, including 11 MCOs
Corporate patients make up 62% of approx 1.1 million patient visits in
Malaysia in FY2008
Relationships with MNC clients a competitive advantage when expanding
in the region
MNCs such as Tesco, Carlsberg Breweries, Bank of Nova Scotia and
Bank of America, and MCOs such as ING which covers staff from MNCs
that includes Exxon Mobil, Citibank, HSBC and Hewlett Packard
(MCO)
*As at 1 July 2009
India (2004)
1 owned clinic:
Chennai: Screening and
diagnostic facilities
40% stake in V.V Dentistree
Private Limited (Jul’09)
Chennai: Dental care clinic
chain with 5 clinics
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Growing Regional Network
6 3
160
Cambodia (Mar’08)
Affiliate arrangement 1 in Phnom Penh 2 in Siem Reap
New Zealand (Jun’09)
48% stake in Peak Primary
Limited
3 primary healthcare
services clinics
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CAMBODIA
*As at 1 July 2009
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One of the Largest Networks of
Private Clinics in Malaysia
Believed to be one of the largest and most comprehensive
geographical coverage in Malaysia
Represents a critical mass of doctors
Several of whom with requisite seniority and experience to take on
quality and supervisory roles on in-house committees and as
medical directors
Attractive to clients and potential partners
Corporate employers and MNCs seeking to provide primary
healthcare benefits to employees in Malaysia
Individual patients seeking quality healthcare
Small private clinics seeking to join or become affiliated or
associated with a larger group
Distributors and suppliers of pharmaceutical and medical supplies
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Economies of Scale
Centralised Purchasing System
Enjoys bulk discounts
Minimises inventory levels and obsolescence
Centralised Marketing with Consolidated Billings
Greater clout to negotiate and contract as a single party with
corporate employers and MNCs
Convenient for corporate clients and MCOs to administer
healthcare benefits to employees and clients
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Scaleable Business Model
Customised IT infrastructure to manage network of clinics in
Malaysia
Ability to remotely and actively monitor operations of clinics in different
areas
Access to patient charges, registration records, database and medicines
dispensed
Comprehensive system of management of clinics
Scaleable and replicable in other parts of region
IT system will form backbone of regional expansion plans
Management able to monitor operations closely
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Capacity to Provide Wide Range of
Primary Healthcare Services
Capacity to acquire necessary equipment and provide wide
range of primary healthcare services, such as ECGs &
scanning facilities
Due to comparatively large proportion of corporate patient load
Larger one-stop high-end clinics possess supporting
diagnostic tests equipment
Allows us to cater to diagnostic needs in addition to usual GP
services
Owned clinics located at premises of large corporate
employers
Eg Bank Negara Malaysia, F&N, Carlsberg Brewery, RJ
Reynolds Tobacco, Tractors Malaysia & Sanyo
Enjoys captive market
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Reputable Qualitas Brand Name
Qualitas brand gaining recognition amongst corporate employers,
MNCs and local communities in Malaysia
Centralised branding strategy maximised by large number of clinics in
network
Co-branding with existing practice names of acquired clinics
Affiliate clinics licensed to use Qualitas brand
Patient-centric philosophy
Doctors to focus on clinical functions
Management & other professionals take on non-clinical functions
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Experienced & Proven Management Team
Doctor-led and doctor-governed
Interests of doctor-employee shareholders aligned with shareholders
Management team of dedicated and qualified professionals
Proven track records in healthcare industry
Founder, Chairman & Managing Director Dato’ Dr Ameen
responsible for growing business
His experience spans both public and private sectors for last 32 years
Supported by Executive Director Mr Karim Dhala
Oversees Group’s finance, accounting and general administrative and
IT functions, and assists Dato Dr Ameen in setting out strategies and
policies for Group’s operations and development
Team of Executive Officers and various in-house professional
committees
Ability to identify new market opportunities, implement strategic
plans and exercise prudent financial management
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Extends Geographical Footprint
Enters the New Zealand market
Completes acquisition of 48% stake in Peak Primary Limited (“PPL”)
- a primary healthcare chain in New Zealand
Primary healthcare chain with three large clinics in its network
Two in Tauranga
One in Whakatane
Purchase consideration of NZ$2.5 million
Initial payment of NZ$1.0 million
Balance of NZ$1.5 million to be made by June 2010, subject to
requirements for specific acquisitions
Enables Group to gain foothold into the Australasia region
Option to increase shareholding to a majority stake of 51%, and
subsequently take over PPL – subject to certain terms and conditions
Target to acquire 15 – 20 large clinics in next 3 – 4 years
Consisting up to 150 individual GP practices
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Expands Scope of Services
Foray into the Provision of Dentistry Services
Acquisition of 40% interest in V.V. Dentistree India Private Limited
(“Dentistree”), a dental care clinic chain in India
Purchase consideration of INR20 million
5 dental care clinics in Chennai: Adyar, Mylapore, OMR, Ashok Nagar
and Anna Nagar
Target to set up about 10 new dental care clinics in 3 years
Chennai, Bangalore and Hyderabad
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Growth Strategies
Enlarge Presence in Malaysia
Identify and acquire suitable clinics for acquisition
Focus on strategic areas to expand and offer better geographical coverage
Develop affiliate/associate arrangements with other clinics
Expand Presence in India, Indonesia and in the region
India
Continue looking for suitable diagnostic clinics to partner
Merged screening centre operations with diagnostic centre in Chennai in Jan 09
Indonesia
Looking to identify suitable established partners to manage diagnostic
centres
Australasia
Exploring opportunities to increase network of GP clinics
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Growth Strategies
Increase marketing efforts towards corporate clients and
patients
Provide more value-added services in the form of health talks, health
awareness campaigns, and privilege cards for targeted groups of
patients
Increase operational efficiency and reduce expenses
Continue to monitor operating cost, which is subject to inflationary
pressure
Endeavour to pass on increase in drug prices, medical supplies and
investigations to patients
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Financial Highlights
(RM’million) FY2005 FY2006 FY2007 FY2008
Revenue 51.9 52.5 57.7 62.2
Gross Profit 26.4 26.8 30.1 31.9
Profit Before Tax 8.5 8.4 8.3 8.7
Net Profit 6.7 6.2 6.3 6.1
Gross Profit Margin (%) 50.9 51.0 52.2 51.4
Profit before Tax Margin (%) 16.4 16.0 14.3 14.0
FY ended 31 December
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Financial Highlights
As at 31
Dec 08
As at 31
Dec 07
Total assets (RM’million) 78.0 62.8
Cash & cash equivalents (RM’million) 24.7 13.5
Total equity (RM’million) 64.8 51.6
Current Ratio 4.6 3.6
Debt to Equity 6.9% 6.0%
Net Debt to Equity Cash Cash
EPS (RM sens) 5.15 5.71
NAV per share (RM sens) 48.0 45.7
Investment Merits
Scaleable & Replicable Business Model
Strong Balance Sheet
Regional Network in India, Cambodia & New Zealand
One of the Largest Networks of Private Clinics in Malaysia –
Economies of Scale
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Focused on Primary Healthcare Services – A Resilient and
Defensive Sector