Markets in Asia followed Wall Street higher today as fears about North Korea and damage from Hurricane Irma abated. A stronger US dollar saw both the Nikkei and the ASX make steady gains, though there was weakness elsewhere. The Hang Seng and the SGX declined. “Profit taking could be one reason behind this technical pullback. Technically, the Hang Seng Index is facing strong selling pressure at 28,000 points – a psychological resistance level,” explained Margaret Yang Yan at CMC Markets in Singapore. Chinese markets traded more or less flat.
Sisram Medical, a Israeli subsidiary of Shanghai Fosun Pharmaceutical, and which manufactures medical aesthetics devices, has priced its HK$977 million (US$125 million) IPO on the Hong Kong Stock Exchange at the low end of guidance. It sold 110 million shares or around 25% of its total share capital at HK$8.88 per share. The first day of trading is 19 September. Joint sponsors are CICC and Jefferies.
Hong Kong-headquartered healthcare services company UMP Healthcare has announced that the public float of the company has fallen below the minimum prescribed percentage of 25% of the total issued share capital. “The company undertakes to procure that appropriate steps will be taken to ensure restoration of the minimum prescribed percentage as soon as reasonably practicable in accordance with the listing rules,” it said, though it admitted that it has not yet determined any definitive proposal.
In a scandal which has dominated the Indonesian press since the weekend, shares in Indonesian hospital operator Mitra Keluarga have crashed 5.2% this week after a baby girl died when she was denied paediatric care at one of its hospitals. Her parents claim that it is because they had been unable to pay the hospital’s upfront treatment fees. Its shares were last see flat at Rp2,000 (US$0.15).
As part of an internal reorganisation, IHH Healthcare, Asia’s largest healthcare company, has merged its Bulgarian subsidiaries, Acibadem City Clinic EAD and Tokushukai-Sofia. IHH said that this was to streamline Acibadem group’s structure and management, and that it would have no material effect on IHH’s earnings, net assets or gearing.
HLIB Research remains cool on medical rubber glove manufacturer Hartalega Holdings after a visit to its new manufacturing complex in Sepang. “Whilst we like Hartalega for its leadership position in the nitrile glove market; high ROE and net profit margins amidst a favourable operating environment, we believe the share price has run its course and these fundamentals are fully reflected at the current share price,” writes analyst Sheikh Abdullah. He maintains his “hold” and target price of M$7.04 (US$1.67). Hartalega shares were last seen down 2.46% at M$6.54.
Maybank Kim Eng is positive on women’s healthcare specialist Singapore O&G (SOG) in a detailed new report on the unrated company. “Based on consensus estimates, SOG trades at 24x/20x FY17E/FY18E P/E. This is at a slight discount of 8%/20% vs Singapore peers’ PE of 26x/25x. On the other hand, SOG offers a respectable 4.0% dividend yield for FY17E, which is the second-highest among Singapore’s peers, which generate 0.5%-5.0% dividend yield,” writes analyst John Cheong.
Retirement village operator Arvida is to acquire three villages in New Zealand – Mary Doyle Lifecare, Strathallan Lifecare and 50% of Village at the Park Lifecare – from Hurst Lifecare for approximately NZ$106 million (US$76.7 million).
Oceania Healthcare, New Zealand’s third largest retirement village operator, has acquired a site adjacent to its Eden facility in Mt Eden, Auckland. Financial terms have not been disclosed.
Golden Equator, a group of five independently managed companies based in Singapore, has launched the Korea-Singapore Healthcare Incubator together with Korean regulatory and clinical research provider C&R Healthcare Global. The incubator will help 10 to15 Korean companies expand into Singapore and southeast Asia over the next few months.
In people news, Australian medical software developer Medadvisor has appointed two regional advisors to accelerate its global expansion strategy. Jamal Butt and Keith Kiarsis will lead MedAdvisor’s market entry strategies into the UK and US, respectively.
In our must-read for the day, Albert Wong argues that biomedical technology should not be ignored and explains how the Hong Kong Science and Technology Parks Corporation can support it.
