Yestar Healthcare Holdings Company Limited
[Yestar Healthcare 2393.HK] Yestar Healthcare Announces 2017 Annual Results: Revenue Increased by 30.0% and Profit for the Year Surged by 29.9% yoy (16 Mar 2018)
【For Immediate Release】 16 March 2018 Announces 2017 Annual Results Revenue Increased by 30.0% to RMB3,927 Million During the Period, the Group has once again recorded another set of outstanding results. Benefiting from the consolidated financial results of the acquired subsidiaries for the last few years as well as the increasing average demand of IVD products, the Group achieved an overall revenue of approximately RMB3,926.9 million for the Year, representing approximately 30.0% year-on-year (“yoy”) increase when comparing with the corresponding period of last year (2016: approximately RMB3,021.8 million). Due to the increase in bargaining power in procurement, gross profit also surged by approximately 44.3% yoy to approximately RMB1,105.8 million (2016: approximately RMB766.3 million), with gross profit margin rising by approximately 2.8 p.p. to approximately 28.2% (2016: approximately 25.4%), As a result of the outstanding performance of our IVD business and the consolidation of financial information of the previous acquired companies, despite the amortization expenses arising from acquisitions and interest expenses from the issuance of Senior Notes, profit attributable to the owners of the parents rose by 24.3% to RMB250.0 million as compared to RMB201.0 million in 2016. Earnings per share was RMB11.5 cents (2016: RMB9.2 cents). The Board of Directors recommends a final dividend of HK5.5 cents per share for the Year, with a dividend payout ratio at approximately 40.0% Horizontal Expansion into the Northern China Market through the Acquisition of Beijing During the Year, the Group has maintained its network expansion through merger and acquisitions (“M&A”). On 20 September 2017, the Group announced the acquisition of 70% equity interest of Beijing Kaihongda Technology Company Limited (“Beijing Kaihongda”), a primary distributor of Rosche Diagnostics Products with well-established sales network in Beijing Municipality and the Hebei Province in the PRC, at a cash consideration of RMB105.0 million. Pursuant to the sale and purchase agreement, an accumulated profit guarantee from Beijing Kaihongda for the three calendar years from 2017 to 2019 for a total of RMB54.6 million net profit after tax was made. The acquisition has been completed in October 2017, and the guaranteed net profit of RMB15.0 million to the Group’s financial results for the Year was also acheived. Upon the completion of the acquisition, Yestar is now equipped with an IVD distribution network covering all the top first-tier cities (Beijing, Shanghai, Guangzhou and Shenzhen) in China, where citizens have a doubled average disposable income than the national average, and the Group was able to leverage on such sales network to further drive sales of IVD products and medical film products to local hospitals, while solidifying the Group’s position as one of the leading and largest distributors for Roche Diagnostic Products. Vertical Expansion into the Downstream Independent Clinical Laboratory Market through Medical Consumable Business – Accounting for 84.4% of overall revenue
Prospects Mr. James Hartono, the Chairman of Yestar Healthcare, stated, “The demographic trend and favoruable government policy will stimulate the demand for IVD products and bring a positive outlook of Yestar’s furture business growth. In view of the PRC’s IVD industry has experienced dramatic growth in the past few years and believed to continue its strong growth momentum, the Group will continue to solidify its IVD distribution platform through channel expansion and look for vertical upstream expansion opportunities. The Group is exploring IVD research and production targets that are complementary to Roche’s product and service portfolio and continuing to focus on product diversification and value creation in order to enrich our platform. Meanwhile, the Group further diversified into the downstream ICL market. With Roche Diagnostic as the solid backup, Yestar is able to build stronger relations with hospitals by providing a wider range of services.” – End – This press release is issued by DLK Advisory Limited on behalf of Yestar Healthcare Holdings Company Limited. For enquiries, please contact: DLK Advisory Document: http://n.eqs.com/c/fncls.ssp?u=GFPHBBRVMW Document title: [Yestar Healthcare 2393.HK] Yestar Healthcare Announces 2017 Annual Results: Revenue Increased by 30.0% and Profit for the Year Surged by 29.9% yoy
16/03/2018 Dissemination of a Financial Press Release, transmitted by EQS Group. |