• Local integrated healthcare supply chain player that markets and distributes their products offering to over 400 customers across more than 30 countries worldwide and is embarking into expansion of new factory building.

• We project core earnings to grow from stronger sales in medical devices, particularly ventilators, patient monitors, defibrillators and ultrasound machines, in line with the upgrade of healthcare facilities in both public and private hospitals.

• UMC is valued by pegging its FY23f core EPS of 2.2 sen to PE of 17.0x, leading to a FV of RM0.38.

Company Background

• UMediC Group Bhd’s (UMC) history traces back to 2002 with incorporation of UWC Healthcare Sdn Bhd that was principally involve in the marketing and distribution of medical supplies and dental-related products. A year later, the group diversified into marketing and distribution of medical devices for hospital settings and was also appointed as the authorised distributor for Goldway (US) Inc (Goldway).

• Over the years UMC expanded their product offerings and set up offices across Malaysia. The group was also appointed as an authorised distributor for certain medical products and devices from (i) Philips, (ii) Mindray, (iii) GE, (iv) Merit, (v) Care Vision HealthCare Pte Ltd and (vi) E-Medtest (M) Sdn Bhd.

• In 2011, UMC embarked into another phase of expansion through the research and development (R&D) and manufacturing of own brand medical consumables, namely HydroX series prefilled humidifiers which was then successfully developed in 2012. The in-house development was well received with the product marketed to Asia, Middle East and South Africa countries in subsequent years.

• Following the relocation of operations to the new office and factory at Batu Kawan in 2021, UMC has successfully developed the AirdroX series inhaler spacers, which has commercialise in June 2022. At the same time, the group has completed the development of sterile water for inhalation and is expected to commercialise in 1Q23. To-date, UMC markets and distributes their products offering to over 400 customers across more than 30 countries worldwide.

Source: Mplus Research - 12 Jul 2022