AsiaMedic

AsiaMedic: (The Edge) Makes foray into China with post-natal confinement centres.Grp is on lookout for business opps that have low capex to expand regionally, and has signed 2 agreements in China to set up a postnatal confinement centre and medical centre in Shanghai. According to grp, there are long waitlists for these confinmenet centres as China’s one child policy makes parents more willing to spend on their children. Grp does not aim to compete with big players like Healthway and Parkway but sees main competitors as the govt hospitals. Apart from China, grp is also looking to expand in Myanmar and believes there is huge potential for a SG branded general practitioner chain in the country. While grp is still looking for potential local partners, grp will adopt the same approach of undertaking ventures of less than $500,000 and promise a quick return on investment. For FY11, grp reported a 2% drop in rev to $10.5m vs S10.7m in 2010, due to lower then expected rev from local imaging and wellness businesses. However grp has a healthy balance sheet with no borrowings and a strong cash position of $7.9m.