PETALING JAYA: Medical device maker UMediC Group Bhd is anticipated to see improved earnings in the coming quarters owing to its additional manufacturing capacity and a larger allocation for the Health Ministry under Budget 2024.

Hong Leong Investment Bank (HLIB) Research said it expects improved performance by UMediC in the coming quarters, underpinned by its additional manufacturing capacity that is expected to come on stream by the end 2023, as well as a larger budget for the Health Ministry in 2024.

“We maintain our ‘positive’ stance on UMediC’s prospects, buoyed by the promising growth trajectory of its manufacturing division post expansion, as well as its advantageous position to leverage on the government’s pledge to raise public healthcare expenditure to 5% of gross domestic product,” the research house said.

UMediC has completed the construction of its new manufacturing facility and is currently awaiting the award of the certificate of completion and compliance, which is anticipated to be granted by year-end.

The research house is maintaining a “buy” call on the company with a lower target price of RM1.