TMC eyes 30% revenue from fertility business

(From left) TMC Women’s Specialist Holdings Sdn Bhd, IVF Technologies Sdn Bhd, Thomson TCM Sdn Bhd, TMC Biotech Sdn Bhd, and TMC Care Sdn Bhd CEO Irene Kwan Yee Man, TMC Life Sciences Bhd executive director Barry Kan Kheong Ng, chairman Professor Emeritus Datuk Dr Khalid Abdul Kadir, group CEO Wan Nadiah Wan Mohd Abdullah Yaakob and group CFO Jimmy Wong Yu Chee.

PETALING JAYA: TMC Life Sciences Bhd aims to grow its fertility business to contribute 30% to total group revenue for the financial year ending June 30,2021 (FY21), from the current 17%.

This will be partly driven by the group’s new fertility centre in Puchong, which is expected to commence operations this May.

TMC group CEO Wan Nadiah Wan Mohd Abdullah Yaakob noted that the group’s fertility branches in Penang, Ipoh and Johor Baru continue to chart growth in its patient numbers.

“While the hospital business continues to be the group’s mainstream business, our fertility business is showing double digit growth in revenue.

“Going forward, we expect the fertility business to grow faster than before and we expect a revenue contribution of 70:30 for our hospital business and fertility segment, respectively, ” she said after TMC’s AGM yesterday.

“There was no negative impact of Covid-19 on our hospitals.  “In fact, we saw higher patient visits to our health screening centre, ” Nadiah said.“There was no negative impact of Covid-19 on our hospitals. “In fact, we saw higher patient visits to our health screening centre, ” Nadiah said.

In FY19, TMC’s hospital segment contributed 83% to total group revenue, with the remaining from the fertility business segment.

TMC posted a revenue of RM195mil in FY19, which marked a 15% increase year-on-year.

Net profit for FY19 slipped 25% y-o-y to RM20.9mil.

This was due to the one-off effect of the capital allowance which was brought forward, higher investment tax allowance (ITA) utilisation, overprovision of deferred tax in previous years, as well as the effect of tax rate changes on real property gains tax (RPGT) from 5% to 10%.

Regarding the effect of Covid-19 virus outbreak on the group’s fertility business, Wan Nadiah noted that there has been deferments and cancellations from its patients from China.

However, this was offset by domestic and Indonesian fertility patients.

“There was no negative impact of Covid-19 on our hospitals.

“In fact, we saw higher patient visits to our health screening centre, ” she said.

Meanwhile, the group’s 200-bed Thomson Hospital Kota Damansara (THKD) continues to record a strong single digit growth in topline, despite running at maximum capacity.

Construction of the hospital’s new wing is on track and is expected to be completed by year end.

TMC aims to commence operations for the new wing by next year, which will bring the total number of beds to 400.

Following that, the second phase of THKD’s expansion is expected to take place two to three years later.

This will add another 200 beds, bringing THKD’s total number of beds to 600, with a total gross floor area of 847,430 sq ft.

TMC has allocated a capital expenditure of RM183.7mil for FY20 as well as a recurring income capex of RM25.6mil, earmarked for THKD, Thomson Iskandar Medical Hub (TIMH) in Johor and the Puchong fertility centre.

TMC group chief financial officer Jimmy Wong estimated that the group’s operating costs will increase by 10% in FY21, with the expansion works of THKD and ongoing development of TIMH.

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