HealthInvestor Asia Summit 2018
Financial intelligence for Asia's healthcare markets
 
 
Remember me:

Opinion: Healthcare isn’t a licence to print money

It can sometimes seem that the healthcare sector is a guaranteed money spinner for investors. It has everything going for it. Societal demands and demographics make it a sure thing, say enthusiasts. And investors have become used to the fact that everything it touches turns to gold.

Take the SGX-Factset Asia Healthcare Select Index for example. The 40-stock thematic index is a targeted index made up of diversified biopharmaceuticals, dietary and naturopathic supplements, patient care and clinical diagnostic devices. In other words a little bit of everything healthcare. Launched in October to track changing trends in Asia, last week we reported that it returned a dizzying 33.2% last year.

But caveats are always important.

Take Singapore-listed healthcare company China Medical International (CMIG). The quondam metal trader moved into healthcare in 2016. Although it has done everything right on paper, its latest full year figures are a disaster.

It reported a loss of S$11.7 million (US$8.8 million) on revenues that fell 32% to S$2.2 million. “We do not foresee improvement in the immediate future,” the group said gloomily.

Last year it had to abandon its S$9.5 million acquisition of the Sloane Clinic – from Bain Gamma-owned Asia Pacific Medical Group. It has had to stop funding for its kidney hospital in Qingdao. And its aesthetic medical services operations in the in Taiwan and China remain weak due to the decline in medical tourism.

When Roman emperors celebrated a triumph after a successful military campaign, a slave traditionally stood behind them reminding them of their mortality. CMIG is a very potent reminder of that truth.

Posted on: 05/03/2018 UTC+08:00


News

Shares in orthopaedic specialists Asian Healthcare Specialists (AHS) shot up 52% at the open on their Catalist debut today.
Private equity firm Permira’s A$690 million (US$536 million) five-year leveraged buyout loan to help it acquire EQT’s stake in I-MED Radiology Network, Australia’s largest radiology company, has been flexed down.
Joanne Hannah has resigned as chief executive of Total Face Group, the first medical aesthetics company to list on the ASX, effective 1 May.
Lianluo Smart, which develops medical devices and wearable sleep respiratory products, has signed a strategic cooperation agreement with Meinian Onehealth Healthcare, the second largest healthcare provider in China.
After a choppy day of trading that saw shares in HKE Holdings, a Singapore-based contractor specialising in the medical and healthcare sectors, rise as much as 10%, they closed up 1.82% on their debut yesterday.
Summerset Group, New Zealand’s third-largest listed retirement village operator, has purchased land to build a retirement village in the suburb of Te Awa. The 9-ha property will be Summerset’s fourth in Hawke’s Bay. It already has villages in Havelock North, Hastings and Taradale.
Metlifecare, New Zealand’s second-largest listed retirement village operator, has said that its purchase of a 5.3 hectare waterfront site at Orion Point in Hobsonville, West Auckland, is now unconditional. The deal was announced at the end of October last year.
Hong Kong care home operator Pine Care Group has signed a management agreement with Zhejiang Yada Real Estate to operate and manage the Wuzhen Graceland Day Care Centre in Wuzhen, Zhejiang. Financial terms have not been disclosed.



Analysis

In Vietnam, population and GDP growth have encouraged the country to think beyond technology in providing more health for more people.
Focused initiatives drive down medical inflation by more than 50 percentage points, according to a new report from Aon Asia Healthcare.
The Japanese healthcare system is a shining example of strength and resilience. At an average lifespan of 84 years, the Japanese society is not only the healthiest but also the "oldest" in the world. However, the challenges presented by an ageing population pose serious threats to the sustainability of the Japanese health system.
Susann Roth, senior social development specialist, Asian Development Bank, explains how investing in energy makes people healthier.
CFO Luke Chen’s reticence on the Q3 earnings call on Friday now makes sense. Jack Ma’s Yunfeng Capital and Alibaba Investment will buy out iKang Healthcare Group, China’s largest private preventive healthcare services provider, for around US$1.4 billion.
Following news that Malaysian sovereign wealth fund Khazanah Nasional will acquire Prince Court Medical Centre (PCMC) from Petronas, IHH Healthcare, Asia’s largest healthcare company, has signed an agreement with Khazanah to look after the day-to-day running of the medical centre.
Malaysian-based primary healthcare provider Qualitas Medical Group is due to push the button on its S$150 million (US$114 million) IPO in Singapore next week. It will be the first mainboard healthcare listing since IHH Healthcare floated in Kuala Lumpur and Singapore in July 2012.
Sumit Sharma, head of health & life sciences, Asia Pacific, at Oliver Wyman, and Matt Zafra, engagement manager, health & life sciences, Oliver Wyman, look at the four themes that are going to dominate healthcare this year.
my images

Podcasts

Hedge Fund Focus

HealthInvestor Asia twitter feed
HIA Indices