Thomson Medical H2 profit soars 572.7% to $41.3m; CEO resigns to pursue personal interests

SINGAPORE (THE BUSINESS TIMES) – Healthcare provider Thomson Medical Group on Monday (Aug 29) posted a 572.7 per cent jump in net profit for the second half of 2022, on the back of revenue growth as a result of a rise in patient loads and higher average bill sizes.

The group also announced the resignation of chief executive Wong Chiang Yin, who is leaving to pursue personal interests. His last day will be on Sept 30. The board said it has identified a potential successor to Dr Wong and will be making an announcement at an appropriate time.

In its results announcement, Thomson Medical said net profit for the six months ended June 30 stood at $41.3 million, compared with a net profit of $6.1 million posted the same period a year ago.

The results translate to earnings per share (EPS) of 0.156 cent, against earnings per share of 0.023 cents in the year ago period.

Revenue was up 52.2 per cent to $188.3 million from $123.8 million in the year before. In Singapore, revenue growth was further boosted by project-related services like managing vaccination centres and transitional care facilities – previously Covid-19 treatment facilities.

Revenue in Malaysia also continued to improve in the second half as patient loads increased and the group handled higher case intensity. A new expansion wing at Thomson Hospital Kota Damansara also opened during H2 2022.

The board has proposed a record special dividend of 0.115 cent per share for the full year ended Jun 30, compared with 0.015 cent in the year-ago period.

This comes as net profit for the full year ended June 30 surged 277.6 per cent to $53.8 million from $14.2 million, buoyed by higher patient loads, larger average bill size, Covid-related projects and the opening of a new wing in Malaysia.

EPS for the full-year stood at 0.203 cent, compared with an EPS of 0.054 cent in the year ago period. Meanwhile, revenue was up 38.8 per cent to $333.7 million from $240.4 million.

Separately, Thomson Medical’s board has appointed Lim Wee Kiat as executive vice-chairman. Lim, who is the son of the group’s controlling shareholder Lim Eng Hock, currently oversees Thomson X, the group’s digital arm.

Lim Wee Kiat’s appointment as executive vice-chairman will be effective from Sept 1. He will be responsible for the group’s overall growth strategies and will work with the board to grow Thomson Medical’s business through mergers and acquisitions, particularly core hospital services in fast-growing South-east Asia economies, the board noted.

Thomson Medical shares were trading up 0.2 cent, or 2.3 per cent, at nine cents as of 10.12am on Monday. after its results announcement.