SINGAPORE (Jan 8): CIMB is maintaining its “hold” call on TalkMed Group with a lower target price of 68 Singapore cents from 92 Singapore cents previously, after cutting FY17-19F earnings per share (EPS) estimates by 18-21% to factor anticipated earnings losses from the recent suspension of the group’s key doctor and CEO, Ang Peng Tiam, on the grounds of professional misconduct in 2010.

Following the announcement of Ang’s eight-month suspension starting from end-July in 2017, TalkMed posted a 17.2% decline in 3Q earnings to S$7.1 million from S$8.6 million a year ago, and said it expected Ang’s suspension to have a material impact on its revenue and earnings going forward.

In a report on Sunday, lead analyst Ngoh Yi Sin underscores TalkMed’s reliance on Ang – who contributed to about 55% of the group’s FY16 revenue – as an inherent business risk that continues to serve as a near-term overhang... (Click here to read the full story.)