Talk Med

Talk Med - No co. specific news to explain its drop apart from profit taking. Recall that co. recently TalkMed surged to an all-time high after a local broker initiated coverage on the counter this morning with an Add rating and TP of $1.20. TalkMed is a premier provider of medical oncology and palliative care healthcare services in Singapore, boasting a group of doctors who provide tertiary healthcare services in oncology and palliative care to patients in the private sector. The key investment theme highlights the ageing population in Singapore with a perceptible rise in cancer victims, as well as Singapore’s growing popularity as a regional healthcare centre. In TalkMed’s recent 1Q14 results, net profit rose 24.6% to $9.2m on revenue of $14.4m (+13.5%), with bottom-line buoyed by a 87.7% drop in other operating expenses to $0.1m due largely to accrued professional fees in the previous year, arising from a rstructuring prior to its IPO. The increase in revenue was due largely to increased patient visits and from patients requiring higher intensity care. Based on a dividend payout ratio of 75%, the stock offers a FY14 dividend yield of 3.4%.