PETALING JAYA: UMediC Group Bhd
expects growth momentum to be supported by expanding manufacturing capacity, a rising order book and new product initiatives over the coming years.
The medical devices manufacturer is also advancing regulatory approvals and capacity expansion plans that could strengthen its position in both domestic and export markets.
At its recent post-results briefing, UMedic highlighted that it was accelerating investments to meet anticipated demand while positioning itself for longer-term expansion through additional production facilities and regulatory milestones, according to Phillip Capital Research.
The brokerage noted UMedic’s current manufacturing capacity stood at about five million units annually, operating at roughly 70% utilisation.
“The group is currently ramping up capacity to around seven million units per year, with a further expansion expected to increase run-rate capacity to 12 million units per year by the second half of 2026,” Phillip Capital said.
“Beyond this, Plant 3 (a newly secured three-acre industrial site) is targeted for completion by 2029, providing long-term capacity headroom to support the group’s next growth phase,” it added.
Near-term earnings visibility is underpinned by a growing order book, the brokerage pointed out.
UMedic’s outstanding order book stood at RM15mil as at April 2026, representing a 50% quarter-on-quarter increase, driven mainly by stronger distribution orders.
The order book mix comprises 65% from distribution and 35% from manufacturing activities.
“Management guided that the RM5.2mil manufacturing order book is expected to be substantially recognised over the current and next quarter, supporting near-term revenue visibility,” Phillip Capital said.
It also highlighted progress on regulatory initiatives that could unlock new export opportunities. UMedic has completed its United States Food and Drug Administration submission, with management expecting approval by the end of financial year ending July 31, 2027 (FY27), enabling exports of its Hydrox prefilled humidifier to the United States and Mexico.
The group is also pursuing pharmaceutical manufacturing certification to support future pharmaceutical-grade product offerings.
Meanwhile, management noted that the Health Ministry’s ambulance tender has been reissued, with the number of units increased from 925 to 989.
Demand remains balanced between public and private hospitals, while a robust pipeline of private hospital construction and expansion projects is expected to support longer-term demand for medical devices.
Phillip Capital Research reiterated its “buy” recommendation on UMedic with an unchanged target price of 43 sen, based on a target price-earnings ratio of 17 times FY27 estimated earnings per share of 2.5 sen. It said it continued to favour UMedic for “manufacturing segment growth trajectory on capacity doubling and robust global demand” as well as “a healthy pipeline of new products, broadening revenue stream”.
