Apex Healthcare 4Q net profit grows 89%, recommends 6.5 sen final dividend

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KUALA LUMPUR (Feb 22): Apex Healthcare Bhd’s net profit for the fourth quarter ended Dec 31, 2017 (4QFY17) grew 89.4% to RM12.8 million from RM6.76 million a year earlier, due to the higher sales and a greater proportion of high margin products in the associates’ revenue mix.

On top of that, higher net profit was also due to the recognition of RM2.9 million as a share of results from the associate company in the current quarter, compared with a share of loss amounting to RM2.9 million in 4QFY16.

Its revenue for the quarter rose 5.85% to RM152.59 million, against RM144.15 million riding on good growth in pharmaceutical sales to both private and government sectors, according to its filing with Bursa Malaysia today.

Earnings per share were 10.93 sen in 4QFY17, from 5.77 sen a year ago.

The group recommended a final single-tier dividend of 6.5 sen per share in respect of the financial year ended Dec 31, 2017, which is payable on June 14 while the entitlement date is June 1.

For the full financial year ended Dec 31, 2017 (FY17), Apex Healthcare’s net profit rose 27.19% to RM44.46 million or 37.95 sen per share, versus RM34.96 million or 29.84 sen per share. Revenue increased by 6.71% to RM620.26 million from RM581.27 million a year ago.

On prospects, Apex Healthcare expects to deliver another satisfactory performance in 2018 driven by its consistent performance last year and as the group continues to focus on fundamentals.

“The prospects for the manufacturing, marketing, and distribution of pharmaceuticals and consumer healthcare products remain positive in the markets we operate in.

“Operationally, the effort is consistently directed at deepening research and development programs, widening the portfolio of new group brand products, penetration of new international markets, growing market share in existing markets and improving production efficiency,” it said.

At the closing bell, Apex Healthcare shares fell nine sen or 1.8% to RM4.90, giving it a market capitalisation of RM574.02 million.