KUALA LUMPUR (July 24): TMC Life Sciences Bhd, a healthcare operator controlled by Singapore billionaire Peter Lim Eng Hock with a 70.499% stake, saw its net profit increase 48.5% to RM3.98 million or 0.4 sen per share for its fourth financial quarter ended May 31, 2015 (4QFY15) from RM2.68 million or 0.33 sen per share a year ago on higher revenue contributed by higher patient load.

Revenue rose 20% to RM28.5 million in 4QFY15 from RM23.75 million in 4QFY14.

In a filing with Bursa Malaysia today, TMC Life also proposed a final dividend of 1.4% for the financial year ended May 31, 2015 (FY15), subject to approval by shareholders at the forthcoming annual general meeting.

The entitlement and payment dates of the proposed dividend will be announced at a later date, it added.

For FY15, TMC Life's net profit jumped 53.6% to RM9.92 million or 1.01 sen a share from RM6.46 million or 0.8 sen a share in FY14, driven by higher revenue and interest income.

Revenue, meanwhile, increased 19.3% to RM103.19 million from RM86.49 million.

TMC Life attributed the higher revenue in 4QFY15 to higher patient load due to increased bed capacity and additional consultants recruited earlier.

However, a one-off corporate exercise expense of RM2.5 million and staff cost incurred to recruit experienced healthcare professionals to manage the expanded capacity had resulted in higher operating expenses in FY15.

TMC Life said despite the issues plaguing the healthcare sector, it is expected to grow in FY16 as it plans to expand its services and positive growth prospects for the healthcare sector in Malaysia remains positive.

“The group continues to expand the breadth of services through attracting medical, nursing and allied health talents,” it added.

Nonetheless, rising costs remain a concern.

“The Malaysian economy appears to be slowing down. Many of our supplies and drugs are imported products and these costs will be adversely affected by the weakening ringgit,” TMC Life said.

It also noted that the introduction of the goods and services tax  will have to be managed carefully by private hospital operators.

TMC Life (fundamental: 1.45; valuation: 0.9) shares closed half a sen or 0.85% lower at 58.5 sen today, bringing a market capitalisation of RM1.01 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)