PETALING JAYA: UMediC Group Bhd
’s order book rose 17% quarter-on-quarter to RM18mil as at July, providing solid near-term revenue visibility as the group targets a 10% to 15% capacity expansion in the financial year 2027 (FY27).
Phillip Capital Research shared in a note following the group’s latest results briefing that its current order book comprises 67% distribution, 31% manufacturing and 1% medical devices, with the bulk expected to be recognised in the next three to six months.
According to the research house, UMediC’s manufacturing utilisation stood at approximately 70% to 80%.
Manufacturing capacity increased to six million units per year in the fourth quarter of FY26 (4Q26) from five million units per year in the preceding quarter, with the group aiming for further growth of 10% to 15% in FY27.
Moreover, the group’s new Aseptic Blow-Fill-Seal machines integrate multiple production processes into a single step, enhancing production efficiency and cutting delivery lead times, Phillip Capital Research highlighted.
Meanwhile, the company’s tender book stands at RM121mil, with distribution representing 48% and medical devices constituting 53%.
The research house noted that the medical devices portion is largely linked to a RM63mil tender involving around 150 ambulance units for government hospitals.
These mainly encompass standard ambulances, with more opportunities for 4x4 and specialised ambulances for hard-to-access areas, it added.
“The tender is expected to be awarded by end-2026 after the tabling of Budget 2027, with management indicating potential margins in the double-digit range,” the brokerage said.
“However, delivery is expected to take longer as the vehicles need to be procured and modified before delivery, with revenue recognition potentially starting around nine to 12 months after contract award.”
On a separate note, elevated plastic resin costs have led to the group raising its manufacturing product selling prices by 3% to 5% to pass through the hikes.
Phillip Capital Research reiterated its “buy” recommendation on the stock, with a 12-month target price of 43 sen, based on an unchanged target price-to-earnings ratio of 17 times on FY27 earnings per share of 2.5 sen.
“We continue to like UMediC for its manufacturing segment growth trajectory on capacity doubling and robust global demand, and a healthy pipeline of new products, broadening the revenue stream.” it said.
Downside risks to its call include a slowdown in medical equipment demand and operational disruptions, it added.
