15-08-2022, 11:16 AM
Hard times have fallen on this Covid-19 beneficiary and "1 hit wonder" company. 1H22's PATMI is -3.7mil, while 2H21's PATMI is ~-1.7mil. This means that losses are continuing to widen.
Medtecs is currently trading at ~18-20cents for the last 1 month. With a NAV (end Jun2022) of 32.76USD cents (or 0.45sgd), it means the Market puts a 50% discount to NAV. This translates to Mr Market assigning zero value to its "brand, existing sales channels and trusted OEM" or its overseas manufacturing facilities, while believing that its losses will continue together with more inventory write-downs.
A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and
the next 12 months.
As part of our growth strategy, we have substantially completed a fully integrated manufacturing facility for nitrile gloves in Cambodia and expect to start commercial operations in the 3rd quarter of 2022. We also have completed vertical integration
of the facemask production facility in the Philippines. This ensures product quality and minimizes supply chain disruption. as we work on becoming a one-stop total solution provider for healthcare needs.
The Group will capitalize on our expanded production capacity of key products such as facemasks, isolation gowns, and other protective apparels to maintain our competitiveness in terms of quality and cost. The Group will continue to accelerate
automation of production facilities while at the same time, outsource non-critical production processes.
The Group will make full use of e-commerce platforms through the business model of “Source and Sell Globally”, which will drive customer engagement and help the Group source for better-quality raw materials and suppliers of PPE. The Group
has continued to grow the Medtecs and CoverU branded protective equipment and disease prevention products as we strengthen our business to consumer (B2C) services both through e-commerce platform and through retail distribution hubs
like drug store, convenience stores and supermarkets.
The Group has capitalized its manufacturing presence in the Philippines as it has several stockpiling contracts for PPEs and military uniform with the government. We have successfully partnered up with a local distributor and key developer of highend medical devices such as handheld ultrasound devices, and expect to launch these products in the Philippines in the next few months.
The COVID-19 pandemic has increased awareness and demand for the Group’s healthcare products and PPE. With the above-mentioned sales and operational strategies, the Group will continue to build awareness for its own brand, develop and expand sales channels, while at the same time, focus on maintaining our competitiveness as a trusted original equipment manufacturer for medical institutes and healthcare providers. The Group remains and will continue to strive to be in the forefront of safety and disease control and management with our high-quality PPE and healthcare related products.
Medtecs 1H22: https://links.sgx.com/FileOpen/Medtecs_S...eID=728580
Medtecs is currently trading at ~18-20cents for the last 1 month. With a NAV (end Jun2022) of 32.76USD cents (or 0.45sgd), it means the Market puts a 50% discount to NAV. This translates to Mr Market assigning zero value to its "brand, existing sales channels and trusted OEM" or its overseas manufacturing facilities, while believing that its losses will continue together with more inventory write-downs.
A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and
the next 12 months.
As part of our growth strategy, we have substantially completed a fully integrated manufacturing facility for nitrile gloves in Cambodia and expect to start commercial operations in the 3rd quarter of 2022. We also have completed vertical integration
of the facemask production facility in the Philippines. This ensures product quality and minimizes supply chain disruption. as we work on becoming a one-stop total solution provider for healthcare needs.
The Group will capitalize on our expanded production capacity of key products such as facemasks, isolation gowns, and other protective apparels to maintain our competitiveness in terms of quality and cost. The Group will continue to accelerate
automation of production facilities while at the same time, outsource non-critical production processes.
The Group will make full use of e-commerce platforms through the business model of “Source and Sell Globally”, which will drive customer engagement and help the Group source for better-quality raw materials and suppliers of PPE. The Group
has continued to grow the Medtecs and CoverU branded protective equipment and disease prevention products as we strengthen our business to consumer (B2C) services both through e-commerce platform and through retail distribution hubs
like drug store, convenience stores and supermarkets.
The Group has capitalized its manufacturing presence in the Philippines as it has several stockpiling contracts for PPEs and military uniform with the government. We have successfully partnered up with a local distributor and key developer of highend medical devices such as handheld ultrasound devices, and expect to launch these products in the Philippines in the next few months.
The COVID-19 pandemic has increased awareness and demand for the Group’s healthcare products and PPE. With the above-mentioned sales and operational strategies, the Group will continue to build awareness for its own brand, develop and expand sales channels, while at the same time, focus on maintaining our competitiveness as a trusted original equipment manufacturer for medical institutes and healthcare providers. The Group remains and will continue to strive to be in the forefront of safety and disease control and management with our high-quality PPE and healthcare related products.
Medtecs 1H22: https://links.sgx.com/FileOpen/Medtecs_S...eID=728580