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.
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”.Note 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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