ISEC Healthcare’s proforma core net profit 6% below

On Malaysia’s currency weakness.

ISEC is waiting for an M&A salvo, after a mixed showing of its results across its Asian markets.

According to a report by Maybank Kim Eng, Malaysia fared well, while Singapore was interrupted by IPO diversion. Malaysian revenue rose 16% to 80% of proforma group revenue, thanks to fee hikes and more patients.

Maybank KE says that ISEC Singapore, which started operations in Aug 2014, seemed to have contributed minimally, while IPO preparations may have used up some of Dr Lee’s time.

Yet to make maiden acquisition ISEC has not announced any acquisition since its IPO in Oct 2014. However, we believe its intention to grow organically and via M&As is intact. Management is eyeing Malaysia, Indonesia, Myanmar, the Philippines and Taiwan.