qualitas medical group limited - · pdf file5 shareholding structure dato‟ dr ameen & mr...
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QUALITAS MEDICAL GROUP LIMITED
CORPORATE PRESENTATION
January 2010
Contents
Our Business
Corporate Developments
Growth Strategies
Financial Highlights
Summary
Business Overview
4
Who We Are
Established in 1997
A leading primary healthcare services
provider in Malaysia Operates GP clinics with supporting diagnostic
services under Qualitas brand name
Network of 166* clinics across the country
More than 1 million patient visits annually
Established MNC client base
Regional network in India, Singapore, New Zealand & Cambodia
Scaleable & replicable business model
Listed on SGX Catalist on 1 September 2008
* As at 31 November 2009
5
Shareholding Structure
Dato‟ Dr Ameen
&
Mr Karim Dhala
(14.48%)
QH Sdn Bhd
(9.89%)
Qualitas Medical Group Limited
Commerce
Asset
Ventures (CAV) &
Commerce KPF
Ventures (CKPF)*
(26.55%)
Public
(48.6%)
Others
(0.48%)
* CAV is a wholly owned subsidiary of CIMB Group Sdn Bhd (CIMB Group), which in turn is a wholly
owned subsidiary of Bumiputra- Commerce Holdings Berhad (BCHB), a listed company on Bursa
Malaysia. CAV legally and beneficially owns 51.0% of the ordinary shares in CKPF.
As at 31 December 2009
6
Our Business Model
Doctor-led and doctor-governed
Network of doctor-shareholders
Focus on primary healthcare services
Outpatient services by GPs
One-stop higher-end clinics with a team of GPs
Prolonged care & monitoring of patients with chronic conditions
Health maintenance & general health screening and periodic
vaccinations
Equipped with supporting medical diagnostics services eg ECGs,
ultrasound and X-ray facilities
Expansion into dental care services
Network of dental clinics and international dental hospital in the region
Includes cosmetic dentistry, family dentistry and implant and restorative dentistry
services
Specialised dental care such as root canal treatments, orthodontic treatments,
implants, microscopic enhanced surgeries and laser assisted surgeries
• Consistent clinic
décor and signages
• Staff uniforms
• Sales and marketing
materials
• Allows data input by
clinics to be
uploaded to regional
offices, corporate
HQs, centralised
purchasing services
and key customers
Our Business Model
Centralisation of Operations
Integrated
software
system
Centralised
Purchasing
System
Centralised
Billing
System
Centralised
Branding
• Efficiencies in
inventory management
• Bulk discounts
• Uniform distribution of
drugs through network
of clinics and
continuous availability
• Convenience and
ease to corporate
clients and MCOs in
administering health
benefits
7
8
Our Malaysian Network
As at 31 November 2009
Our Malaysia Network
166 clinics across the country
83 owned clinics
83 affiliate and associate clinics
6
11
3
14
63
32
93 22
2
1
9
Established Clientele of MNCs
More than 5,000 corporate clients, including 11 MCOs
Corporate patients make up 62% of approx. 544,000 patient visits in
Malaysia in HY2009
Relationships with MNC clients a competitive advantage when expanding
in the region
MNCs and MCOs such as ING
(MCO)
As at 31 December 2009
India (2004)
1 owned clinic:
Chennai: Screening and
diagnostic facilities
40% stake in V.V Dentistree
India Private Limited (Aug‟09)
Chennai: Dental care clinic
chain with 5 clinics
1 international dental hospital
10
Growing Regional Network
7 1
166
Cambodia (Mar’08)
Affiliate arrangement 1 in Phnom Penh
New Zealand (Jun’09)
48% stake in Peak Primary
Limited
4 primary healthcare
services clinics
Singapore (Dec’09)
75% stake in Dr Marcus
Cooney & Associates Pte
Ltd
1 dental care clinic
4
CAMBODIA
As at 31 December 2009
1
Corporate Developments
12
Regional and Business Expansion
Acquisition of 75% stake in Dr Marcus Cooney &
Associates Pte Ltd (DMCA)
Dental clinic operating under the trade name „SmileFocus‟
Located in Camden Medical Centre
Provides wide range of specialist dentistry services, including
cosmetic dentistry, family dentistry, and implant and restorative
dentistry services
Staff strength of 42, including 3 specialists, 9 general dentists
and 1 dental hygienist. All the doctors have strong international
training and experience.
Beachhead into the Singapore market
13
Consideration to be paid in two tranches:
May be satisfied fully in cash or partly in cash, partly in Qualitas shares
Final valuation being equal to 7.5 times SmileFocus’ FY2010 profit after
tax
Max value capped at S$9 million
Acquisition of remaining 25% stake subject to amongst other
conditions
Exercise of put option granted to Dr Cooney (shareholder of remaining
25% stake) or call option granted to Qualitas
DMCA posted revenue of S$7.5 million and net profit after tax of
S$0.6 million in FY2008
(approx. RM18.2 million and RM1.5 million respectively)
Plans to expand the „SmileFocus‟ brand in Singapore and
Malaysia
Regional and Business Expansion
Beachhead into the Singapore market (cont’d)
14
Regional and Business Expansion
Expands regional footprint
New Zealand – Peak Primary (48% stake)
Acquired 1 additional clinic in December 2009
Total of 4 clinics and 30 doctors in Peak’s network
To acquire another 1 clinic in February 2010
Target clinic has strength of 9 doctors
India – V.V Dentistree India (40% stake)
Established 1 international dental hospital in August 2009
Located on a premise with 5 floors and total built up area of approx. 7000 sq ft
Fully-equipped operation theatre with modern facilities, digital orthopantomogram (OPG)
and state-of-the-art dental lab
Growth Strategies
16
Growth Strategies
Enlarge Presence in Malaysia
Expand GP clinic network
Identify and acquire suitable clinics for acquisition
Focus on strategic areas to expand and offer better geographical coverage
Develop affiliate/associate arrangements with other clinics
Provide training to individuals under the Ministry of Human Resources‟ “Train and Place
Scheme”, and organise other training programmes from time to time
Extend range of services to day-care centres
Signed a Memorandum of Understanding (MOU) with a day-care centre in Malaysia
Explore introduction of dental services
Via ‘SmileFocus’ brand expansion
17
Growth Strategies
Expand Presence in the Region
India
Continued expansion of dentistry services
Continue looking for suitable diagnostic centres to partner with
Australasia
Explore opportunities to increase network of GP clinics in New Zealand
Explore expansion of New Zealand clinic concept to Australia
Singapore
Increase number of „SmileFocus‟ dental clinics
Replicate „Qualitas‟ business model in Singapore
Signed a MOU with a GP practice to extend Qualitas’ reach
Financial Highlights
19
Financial Highlights
(RM’million) FY2005 FY2006 FY2007 FY2008 HY2008 HY2009
Revenue 51.9 52.5 57.7 62.2 30.3 32.3
Gross Profit 26.4 26.8 30.1 31.9 15.5 16.6
Profit Before Tax 8.5 8.4 8.3 8.7 3.8 4.3
Net Profit 6.7 6.2 6.3 6.1 2.9 3.0
Gross Profit Margin (%) 50.9 51.0 52.2 51.4 51.0 51.5
Profit before Tax Margin
(%)16.4 16.0 14.3 14.0 12.7 13.3
FY ended 31 December HY ended 30 June
20
Revenue
FY ended 31 December HY ended 30 June
RM’mil
51.9 52.557.7
62.2
32.330.3
21
Gross Profit
RM’mil
FY ended 31 December HY ended 30 June
22
Financial Highlights
As at 30
Jun 09
As at 31
Dec 08
Total assets (RM’million) 76.1 78.0
Cash & cash equivalents (RM’million) 21.7 24.7
Total equity (RM’million) 64.6 64.8
Current Ratio 5.3 4.6
Debt to Equity 5.5% 6.9%
Net Debt to Equity Cash Cash
EPS (RM sens) 2.25 5.15
NAV per share (RM sens) 47.9 48.0
Summary
Investment Merits
Scaleable & Replicable Business Model
Strong Balance Sheet
Regional Network in India, Singapore, New Zealand &
Cambodia
One of the Largest Networks of Private Clinics in Malaysia –
Economies of Scale
24
Focused on Primary Healthcare Services – A Resilient and
Defensive Sector
Q&As