{"id":31650,"date":"2023-08-07T10:55:18","date_gmt":"2023-08-07T02:55:18","guid":{"rendered":"https:\/\/umedic.com.my\/Stagging2025\/?p=31650"},"modified":"2023-08-08T13:30:05","modified_gmt":"2023-08-08T05:30:05","slug":"umedic-group-to-benefit-from-higher-public-healthcare-spending","status":"publish","type":"post","link":"https:\/\/umedic.com.my\/Stagging2025\/umedic-group-to-benefit-from-higher-public-healthcare-spending\/","title":{"rendered":"UMediC Group to benefit from higher public healthcare spending"},"content":{"rendered":"
Hong Leong Investment Bank (HLIB) Research is upbeat on UMediC Group Bhd, due to the growth potential of its manufacturing segment and ability to capitalise on an expected increase in public healthcare spending.<\/strong><\/h6>\n

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KUALA LUMPUR: Hong Leong Investment Bank (HLIB) Research is upbeat on UMediC Group Bhd, due to the growth potential of its manufacturing segment and ability to capitalise on an expected increase in public healthcare spending.<\/p>\n

The government has committed to increase public healthcare spending to 5 per cent of the gross domestic product from an estimated 2.9 per cent in 2021.<\/p>\n

HLIB Research said it is anticipating an increase in the opening of tenders for medical equipment procurement from the public sector in July and August.<\/p>\n

This is to ensure timely delivery of the equipment by December 2023, since the standard tender process takes about 4 months from initiation to completion.<\/p>\n

“We are upbeat on the distribution segment’s performance in 1HFY24f, driven by the anticipated influx of public sector orders,” it said in a note.<\/p>\n

In 1HFY23, UMediC faced a delay in public sector medical equipment orders due to the change in government.<\/p>\n

Typically, UMediC will see stronger medical equipment sales to the public sector in 2H of the calendar year (equivalent to its 1HFY) as the Ministry of Health (MoH) utilises the budget allocated for the year to procure medical equipment.<\/p>\n

Separately, UMediC is also on track to launch two of its new products (prefilled nebuliser and sterile water for inhalation) by end-2023.<\/p>\n

“We note the CE certification audit process for the prefilled nebulisers has been completed, and UMediC targets to commercialise the product once certification is received. “We expect the prefilled nebuliser to contribute more meaningfully starting from CY24f,” said HLIB Research.<\/p>\n

The firm said the recent share price retracement offers a significant upside potential, of more than 50 per cent, to its current trading price. <\/p>\n

UMediC’s share price was trading 0.72 per cent higher at 70 sen, as at 9.06am. <\/p>\n

HLIB maintains a buy rating on UMediC, with an unchanged target price of RM1.03. \u2013ends\u2013 (New Straits Times) <\/p>\n

https:\/\/www.nst.com.my <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Hong Leong Investment Bank (HLIB) Research is upbeat on UMediC Group Bhd, due to the growth potential of its manufacturing segment and ability to capitalise on an expected increase in public healthcare spending.   KUALA LUMPUR: Hong Leong Investment Bank (HLIB) Research is upbeat on UMediC Group Bhd, due to the growth potential of its […]<\/p>\n","protected":false},"author":129,"featured_media":28391,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"

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UMediC Group Berhad (KLSE:UMC<\/a>) Second Quarter 2023 Results<\/h2>\r\n

Key Financial Results<\/h3>\r\n