Healthway Medical share price faces another lost decade?

LIFETIME MEMBERSHIP The on-going Ukraine crisis has sent global stock markets into a devastating tailspin. The war occurs at a very bad timing as global economy is in the midst of recovering from the protracted pandemic. In this context, how will Healthway Medical share price unravel in 2022? A concerned Lifetime member has written in to enquire the lack of vitality for this counter.

Due to the request from a Lifetime Member, I am writing this article to provide my insights on Healthway Medical share price. Apart from the request, I have been wanting to cover this counter for some time because of my recent annual body check-up at one of Healthway Medical clinics.

Healthway Medical share price

For background, Healthway Medical is a private outpatient medical service provider operating more than 100 clinics and medical centres in Singapore. Within Singapore, Raffles Medical is a competitor of Healthway Medical. The difference between the two is that the former is listed in SGX Mainboard while the latter is listed in Catalist.

On 25 February, the Group announced a set of stellar financial result yet Healthway Medical share price remained moribund. Why is this so? Average 3-month trading volume amounted to just 19.75 million while 5-year Beta was 0.58. These suggested a poor liquidity for this counter.

In my opinion, the lack of market interest in Healthway Medical share price could be attributed to several factors. Looking back, the counter has endured a lost decade. In 2013, Healthway Medical share price peaked at $0.12. In the aftermath of the penny stock crash in SGX, the shares collapsed to the current levels. Due to the lack of confidence among investors in penny stocks, many investors could be giving this stock the cold shoulder. In fact, Healthway Medical share price has been trading at $0.030 to $0.035 range for the past two years even though its core business had been given a massive tailwind from the pandemic.

The poor interest in Healthway Medical share price is also due to the lack of dividends. The last dividend pay-out was in May 2010, which was more than a decade ago! To rub salt into injury, despite announcing a set of stellar FY2021 financial result, no dividend was issued as “as the Company intends to conserve cash for future business expansion opportunities”.BullionStarNote that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in Healthway Medical before. Whether Healthway Medical share price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions

Healthway Medical share price in need of mojo

Despite the wretched performances of Healthway Medical share price, the company’s financials seemed to have turned. Net losses had consistently fell from $44 million in FY2016 to $3 million in FY2019. Then the arrival of COVID-19 in 2020 led to a net profit of $3.23 million in FY2020. In FY2021, the Group recorded a net profit of $10.7 million.

Given the solid financial result, will I invest in this counter? My answer is [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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7 thoughts on “Healthway Medical share price faces another lost decade?

  • March 3, 2022 at 5:31 pm
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    A balanced, thorough and comprehensive article. I can say this bcos I have done my own due diligence. I am impressed with the quality of the research and the prompt response. Many thanks, Gerald

    PS Though it’s not a Sin listed company, perhaps for your own personal interest… try Novo Resources. I’ll be happy to share whatever I know. My interest is also in jr. gold miners and looking for another 10 bagger. Cheers

  • March 4, 2022 at 8:04 am
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    Hi Victor,

    Thank you so much for your comments. Glad that you find the article useful!

    Regards,
    Gerald
    https://sgwealthbuilder.com

  • March 8, 2022 at 12:15 pm
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    Hi Gerald,
    Will be appreciated if you can look into Q&M Dental
    Thanks

  • March 11, 2022 at 12:30 pm
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    Hi Gerald

    Thanks for your great article, and quality research.
    By the way, Recently Q&M go into F&B (No signboards) , will it affect their share price? Thank you!

  • March 11, 2022 at 2:39 pm
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    Hi Mary,

    Thank you for the compliments. Regarding the investment in No Sign Board Holdings, it was a personal investment by the CEO (Dr Ng) and does not involve the company. So my view is that it will not affect the share price. That was why I did not include this in the article.

    Regards,
    Gerald
    https://sgwealthbuilder.com

  • March 14, 2022 at 11:58 am
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    Hi Gerald

    OIC. Thank you very much

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