8 Quick Points That Investors Should Know From Singapore O&G Ltd’s Latest Results

Singapore O&G Ltd. (SGX: 41X) is a healthcare company that was listed in June 2015. As such, it operates within the same industry as TalkMed Group Limited (SGX: 5G3) and Raffles Medical Group Ltd (SGX: R01).The company operates mainly in three segments, namely Obstetrics and Gynaecology, Cancer-related and Dermatology.

The company has recently its released its 2017 fourth quarter (4Q FY17) earnings update. In this article, we will look at eight quick points to summarize its latest earnings.

1. Sales was up 10.3% year-on-year to S$ 7.9 million.

2. Profit from operations jumped 386.6% year-on-year to S$2.0 million, driven by a timing difference of staff bonus accrual.

3. Quarterly net profit jumped 163.8% year-on-year to S$ 2.0 million.

4. Operating margin increased from 10.7% a year ago to 25.8% in the latest quarter, driven by the same reason mentioned in point number two.

5. Net cash generated from operating activities was negative S$ 0.9 million as compared to a positive S$3.2 million in the fourth quarter of 2016. The difference between the two quarters was came from a reduction in trade payables and an increase in trade receivables.

6. Singapore O&G had S$16.4 million in cash and cash equivalents and no debt, as of 31 December 2017, down from S$ 21.4 million in cash and cash equivalent and no debt at the end of last year.

7. The company established a new paediatrics segment in July 2017. As such, the number of medical practitioners grew from 10 people last year to 12, as of 31 December 2017.

8. For its outlook, the company said:

“As at the date of this Announcement, the Board of Directors is not aware of any significant change in trends and competitive conditions that will significantly affect the Group’s operations and businesses……

On 1 July 2017, the Group extended its services through the offering of general paediatrics and adolescent medicine services. With the new Paediatrics segment, it allows the Group to continue to take care of our existing patients and their newborns. As this is a new segment and in a start-up phase, the Group expects the contribution from this segment to continue to be moderate for FY 2018”

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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 Lawrence Nga doesn’t own shares in any companies mentioned. Motley Fool has a recommendation for Raffles Medical Group.