4 Key Insights from ISEC Healthcare Ltd’s Management

ISEC Healthcare Ltd (SGX: 40T) is a relatively new listed company in Singapore.

Recently, the company’s vice chairman, Dr. Lee Hung Ming, was featured in an interview series by bourse operator Singapore Exchange Limited  (SGX: S68).

I picked out four key insights from the interview that may be useful for investors.

As a brief background, ISEC Healthcare provides specialist medical eye care services out of four locations in Singapore and Malaysia. Without further ado, here are the learning points.

1. Company with a purposeclick here

2. A keen focus on customersclick here

3. Scale is a competitive advantage

“Potential partners also like ISEC’s brand name, its economies of scale, and the training it can provide across ophthalmological sub-specialties.

“We have funds to acquire the latest medical technologies in the market. We are also able to leverage our size, reaping economies of scale in the purchase of equipment, machines, lenses and disposables,” [Lee] added.”

ISEC Healthcare sees itself as a growth company. If so, one consideration for investors would be how that growth can be sustained. Lee believes that the company’s competitive advantage will come from its bigger scale which will enable it to bring new medical technologies to the region.

4. Deeper integration

“Eyes are our core business, but we may want to diversify into other areas which have synergies, such as general medicine. GPs [General practitioners] can refer cases to our eye centres in both Singapore and the region.”

Beyond its scale, ISEC Healthcare may extend into the general medicine space. While general healthcare may not seem like something in the company’s wheelhouse, such a venture may yet benefit the eye care specialist in terms of GP referrals.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.