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Latest Forum Topics / Medtecs Intl    Last:0.122    -0.001  Post Reply
Sats
kiattttt
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04-Mar-2021 16:30     
 
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 Alert Admin 		Correct and the ' forces' are shown on the technical side 

AhTan888      ( Date: 04-Mar-2021 16:27) Posted:

All the TA, FA, fundamental and charts not in play for this counter. The price depends on the mood of the forces. Dun u think so?

kiattttt      ( Date: 04-Mar-2021 16:05) Posted:

Technical side looks horrible, fundamental not as rosy anymore, CEO' s tone also somehow less optimistic. It should be clear which direction this stock is going 


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AhTan888
Senior
04-Mar-2021 16:27     
 
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 Alert Admin 		All the TA, FA, fundamental and charts not in play for this counter. The price depends on the mood of the forces. Dun u think so?

kiattttt      ( Date: 04-Mar-2021 16:05) Posted:

Technical side looks horrible, fundamental not as rosy anymore, CEO' s tone also somehow less optimistic. It should be clear which direction this stock is going 

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kiattttt
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04-Mar-2021 16:05     
 
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 Alert Admin 		Technical side looks horrible, fundamental not as rosy anymore, CEO' s tone also somehow less optimistic. It should be clear which direction this stock is going 
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Gnoixed
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04-Mar-2021 15:09     
 
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 Alert Admin 		Based on the DBS guidance, the FY2021 EPS around 18cents only. Don' t look optimistic. Wondering why Management cannot be more upfront about this.

FrancisLim      ( Date: 04-Mar-2021 14:28) Posted:

These will be positive for the Company profile and probably its share value:

(1) upgrade to Main Board
(2) conduct its share buyback strategically
(3) management buy share 
(4) more broking houses coverages
(5)  institutional investors participations
(6) clarity in its guidance and capex (not enough to say greater than prior year) can revise as and when

and importantly these will postively impact its bottom line and share value:

(1)  improved profit margin  - economies of scale
(2)  increased sale to exisitng and new customers and geography, through existing and new channels
(3)  success in new products, JVs and set-up subsidiaries

DYODD
Share go up and down, dont fall in love with the stock.   

Thanks for the weninair update (did not see this being announced in Medtech website)
 

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FrancisLim
Elite
04-Mar-2021 14:28     
 
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 Alert Admin 		These will be positive for the Company profile and probably its share value:

(1) upgrade to Main Board
(2) conduct its share buyback strategically
(3) management buy share 
(4) more broking houses coverages
(5)  institutional investors participations
(6) clarity in its guidance and capex (not enough to say greater than prior year) can revise as and when

and importantly these will postively impact its bottom line and share value:

(1)  improved profit margin  - economies of scale
(2)  increased sale to exisitng and new customers and geography, through existing and new channels
(3)  success in new products, JVs and set-up subsidiaries

DYODD
Share go up and down, dont fall in love with the stock.   

Thanks for the weninair update (did not see this being announced in Medtech website)
 
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histoka
Member
04-Mar-2021 13:20     
 
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 Alert Admin 		Thank you so much for nqing and greg contribution.   
nqing - You are selfless and took so much of your time to scribe the minutes.  I too agreed with your selling reasons and after listening to William briefing I sold even more quietly yesterday too.    Is a pity to forgo our few thousands of dividend but I think we can always invest in other safer stock.   
greg - You are dynamic in this tread to always engage and write to MT thereafter keep us update.   

Ongoing this tread will become lifeless without both of you and those old guards who already left.  William if you are reading here pls consider to hire our nqing and greg as your Media spokesman as they are so engaging and so much better than your current one.   

gregtan123      ( Date: 04-Mar-2021 10:24) Posted:

Though U sold but u still bother to post n scribe this out, just wanted to give a big shout out to you nqing87, will always remb this. in the unlikely event MT breaks ATH, will have a seat for you on our first class plane ride post pandemic of course. will contact u then! Big big thank you for ur sharing n service.

nqing87      ( Date: 03-Mar-2021 23:30) Posted:

As promise, like what i did last time, below is the webinar Q& A session for investors info for due dilience.. Some parts are a little jumble up and i cant figure what they are talking (which i mark as " inaudible" ).. I may not be holding Medtecs now, but i will still give my morale support to the longists.. there are plans to grow Medtecs to become sustainable in earnings, but I shall wait for better clarity on the future earnings sustainability before deciding whether to re-jeep again

Maybank Head of Research: In the presentation you talk a lot about sustainable growth. Can you talk a little a bit about, given the fact that the vaccine, generally better than expected vaccine roll out across quite a few countries, how are you thinking about this medium term sustainable growth in terms of the new products that you launching, will they be enough to offset some of the post pandemic sort of demand slackness that we may see for some of the PPE and masks.
William: Even as of today, we still see studies and articles saying that the PPE market will grow, with or without the roll out of vaccine. It is true that for some countries, the daily confirmed cases number is dropping, but the PPE demand is still stable and in some regions it is still ongoing dramatically. So it is predicted that the PPE as a market will grow for the next 3 to 5 years with the compound rate of 7-10%. So our goal is to get more and more market share and the majority of our current orders are actually recurring orders. These are our old customers or customers we started to serve from last year, they also form a sticky relationship with us. So the majority of our capacity is to satisfy our existing customers. And of course we still reserve about 15-20% for spot buying customers or new enquiries. So on the PPE side I think it is quite stable and price wise is also quite stable. And of course while looking into others opportunities, we want to maximise the utilisation of our cash position to perform some synergies to our current network and capabilities. So this is our strategy on sustainability.
Maybank Head of Research: It&rsquo s interesting that you talked about quite a lot of your sales are actually going to your existing customers. Can you give us a little more clarity in terms of how much of 2021 revenue is actually coming from the existing customers or already contracted out?
William: I cannot share with you the exact number but I always say the majority which is quite a big portion, and I think the least we have to worry about is the capacity issue because we outsource a portion of our workload to our allies so even if there is a huge demand, we can still ramp up in a shortest amount of time. So we won&rsquo t give up new customers or opportunities because of our existing (inaudible).
Maybank Head of Research: Can you talk a little bit about how you are seeing overall PPE pricing and mask pricing currently and how you expect that it to (inaudible) as it going this year and maybe even beyond.
William: Ok for the regular 3 ply mask, I think the price is about the same or slightly lower than pre-covid, but it is quite stable now. For higher end mask, for example N95, (inaudible), is still quite expensive. It is still a lot higher than pre-covid. For other PPE like isolation gowns and coverall, it is like 5-15% higher than pre-covid. I mean the current market buying price. So it is quite stable and I expect the price level to maintain at least for 2021.
Maybank Head of Research: Got it. We getting quite a lot of questions in terms of shareholder returns, particularly in terms of dividends. Can you talk about the dividend policy as we go forward, given the fact that you have quite a strong sort of earnings coming through. Would you look at a more formalise policy, you know maybe more than 1 dividend a year, quarterly dividend and so on. And also can you talk a little about share buybacks, given the fact that you have quite a bit of cash on your balance sheet.
William: On the dividend policy, actually we still have discussions over it and because as you see from our financial charts and figures, our company experience a huge transformation in the past 12 mths and we are also observing a lot of opportunities in the market, whether to establish new production lines to M& A, JV with partners, these all require cash injections or resources, which is why we cannot or we did not announce a fix dividend policy previously, but of course we want to reward our long term shareholders so we actually announce 2 dividends throughout the year in the past 12 mths. So we want to guarantee our shareholders benefit and at the same time, we want to grab the opportunity in the market, so we can actually maintain a strong sustainable growth. But I think we will have a more concrete policy around next board meeting, which is also around the next AGM end of April.
Maybank Head of Research: I want to talk about your operations. Given the fact that you mention that you want to grab opportunities and again when I look at the balance sheet and I look at the level of cash that you have, can you talk a little about how you thinking about acquisitions. Are you looking at more (inaudible), or more transformational acquisitions. Can you talk a little about that and then I have follow up question after that.
James (Financial officer): With regards to M& A, I think as you can see in this slides, we are trying to build the resilience supply chain. Nowadays you can see that we have our JV, start out strategic partnership, and now we are looking at several projects to see what kind of business opportunities we can have. So I think in this coming year, capex definitely will be higher than last year. That&rsquo s why we are thinking about a long term dividend policy (inaudible).
William: Also I think I address the question about share buyback. So of course because we already have the mandate, so the company has agreed to execute the share buyback anytime. So, whenever we need it, we do it immediately. So, I think our shareholders rest assured that the company will act when it is needed. (Some internal chatting going on after that and I will skip that)
Maybank Head of Research: Would you be looking at any sort of threats in acquisition. Is that something you are comfortable with or would you actually have some sort of safeguards for that?
William: Sorry can you repeat the question again?
Maybank Head of Research: The question is there will be threat of someone wanted to acquire you and take you up given the fact there are much large PPE makers globally. Because you have all these plans and things like that, it makes you an attractive target. What are your thoughts on that?
William: I think we are gladder if people are actually looking at our outlook and strategy and think we are a growth stock and which is worth their effort to get a portion of our stock. I think with the current p/e ratio and stuff, I think of course some people might think our stock price is undervalue and becomes a target, but we will just focus on the company&rsquo s sustainability and growth and if that happens, the management has already fair amount of shares, so I think that is not our major concern at this point. I myself has already acquired I think 1.5mil shares in the past 2-3 mths. And I think, I don&rsquo t think I can say (chuckle). So we are also in the position to acquire more if necessary.
Maybank Head of Research: Thanks for the answer. I wanted to shift the focus a little bit to your operation side. Maybe can you give us a little update on the current status of the government stockpiling, where do you think they are in the cycle. Is there more to come, in terms of how you all positioning there.
William: Ok. A lot of spud buying occurs last year because they need to purchase a huge amount to close the gap for their immediate use and some governments or some countries are still facing the same situation with the gown, but some countries because they ram up their stockpile, so they are buying on a replenish or a replacement basis instead of buying a huge chunk in one order, so we are now receiving orders and enquiries about like replacement/replenishment, those are the recurring order, long term orders. We are also still seeing like a huge tender, there could be like 20mil pieces of coverall and gowns we are still seeing enquiries like that. So it depends on different countries. For us, because our business model takes time to educate our customers and for them to set up the budget, so for the most part, most of our customers are still performing outright buying from us. But some are already trying to pass the budget for different options provided by Medtecs. And for (inaudible) we are already servicing lots of their national stockpiling, and I believe being the head of CPMP, we will play the most important role for Philippines national stockpiling.
Maybank Head of Research: Can you talk a little bit about your US operation. What is the current status of that, what are the expansion plans there, and also maybe talk a little bit about how you actually plan to expand market share in that market.
William: So for US operation, the main focus was on face masks. That is the phase one. I think we started producing and selling Medtecs branded USA made masks end of last year and we observe that the selling of local made face masks actually slow down because people actually consume face masks everyday, the quantity is enormous. So a lot of the time the demand is still price drive and USA made masks is expensive comparing to Philippines made for example. So when we offer both options to our customers, they will prepare the cheaper version or cheaper offering. I mean there is still a niche market for USA made masks, but the demand is not that huge. But fortunately, when we adapt this USA strategy, it&rsquo s more like a test site, so we partner up with a local vendor of face masks, so the investment is minimal so it won&rsquo t become a burden later on. We still monitor the local market demand and so far the sales generated by USA corporation project is I think less than, it&rsquo s minimal. But the investment is also at a minimal, which is why our flexible strategy proves to be a right decision.
Maybank Head of Research: So in that case if we look at the current status of vaccine roll out, you know in Asia, probably Singapore is going to be the first country to get to herd immunity. Some of the countries are behind. And if you look at the European and USA situation, where are you most optimistic in terms of continued demand for your products, because you are talking about sustainable growth and (inaudible) as we go into say 2022.
William: Ok, so this demand of PPE has been there for 50, 60 years. So this is not something that just came out last year. So we have been doing, making PPE for over 20 years. We have been competing with China vendors for 20 years, price wise or (inaudible), and the market is still expanding with or without vaccine. And I think as many of you have heard, many countries are moving their sourcing team or they are going outside of China or they are going to diversify their source, and we are probably the strongest, biggest PPE manufacturer outside of China, which is why we still receive lots of enquiries. Also even post covid, the PPE demand is still there and we are just getting stronger and stronger. And we are not just making the non-woven products, we have very comprehensive offerings. For example we also offered gloves and syringes and other medical devices. So we are acting as the first multinational group purchasing organisation in Asia because we are selling to Taiwan, Singapore, Philippine, Cambodia and other countries to their hospitals directly. So the utilisation rate remains very high and that part of the business is very firm, not to mention the top 10 GPO or medical distribution channels in US. Out of the top 10 suppliers or vendors, at least 3 or 4 of them are buying from us. So this is also a very steady business with big volume. So I&rsquo m not quite worried about the PPE selling and utilisation of our capacity.
Maybank Head of Research: Got it. Just ask 1 more question before we change direction. You know you talk about building a supply chain and making it sustainable as part of your presentation. How sustainable you think it is versus say someone else also coming in directly (inaudible) supply chain, especially we have Malaysian producers who have very strong capital levels and very (inaudible) balance sheet as well. So what makes your supply chain more resilient than somebody else.
William: Ok, so if we look at this chart, we actually partner up with the buyer. So we form JV with the buyer. Because how can they get the assurance that they will get the products for delivery in times of pandemic. So they want to actually get a portion of share in Medtecs, so they will have influence and some control over our capabilities of our output. So we reach out to the raw material suppliers, we also reach out to the distribution channels and end users, and it will be an interesting combination of partnership if we have the raw material supplier, the manufacturer Medtecs and the end buyer all join up. So in the pre-covid situation they are just buying materials, they are just buying products. But now we actually form a company. So this company will (inaudible) raw material purchasing orders from the raw material suppliers and we will also have long term commitment from the end users. Because the interest is mutual or commonly share by all parties. So this is the future supply chain and this is what we are doing actually. So we have participants from the raw material suppliers and the end users. So everyone will do their part and role and it will be a long term commitment. And everyone will enjoy a steady, sustainable business stream.
Maybank Head of Research: Ok. You talk about product launches and things like that. Can you talk a little about your B2C (inaudible), how do you deal with the competitive pressures in B2C strategy, versus dealing with B2B or B2G.
William: Ok. So this is different from what we did in the last 30 years. So a lot of investors or institutions are asking about capacity or the capex. I think that is the least we have to worry about because we have a lot of potential investors who are willing to inject resources, cash into our company. So I&rsquo m not worry at all. And capex we can easily ram up, because we already have the network, we already have the cash. So I think they key for 2020 and 2021 is actually branding. So as you mention B2C we need branding. We need to have branding ability, we need to have more exposure online and offline, which is why the next slide I also show you our first branded video on youtube actually generated 2million views in 2 mths time. I think it is like the record high for our industry, for any brands, US or international brands. So we are putting a lot of efforts on brand awareness. So we are actually putting resources, time and money to actually get more and more fans, exposure, visibility. So these products, those are not like medical products. These are like (inaudible) and we are also working with other famous brands, local brands and international brands. You will see the kick-off event soon so we will have lots of that in the next 2 mths time. We also have flash store to further promote our Medtecs Shield products, and the concept of future personal protection. So we are putting more efforts on this kind of long term brand awareness and (inaudible) B2C products.
Maybank Head of Research: When do you think majority of these products will be widely available?
William: In less than 2 mths, some products will be available in April. The first 5 will be available in April and more will come in like 2,3 mths.
Maybank Head of Research: Got it. I just want to change the direction a little bit. I&rsquo m aware of the time but we have a lot of questions on, you know the status of your mainboard listing in SGX, where is the progress in that?
William: Ok. So we already submitted our application. I think the stock exchange main concern is to see our full year results and now that we already release our 2020 full year results, I think they will be more confident with us and with our future outlook, they understand that this business and this model will be sustainable, so I think they will have an easier time to make a quick approval.
Maybank Head of Research: Did they indicate any sort of time after your full year results (inaudible).
William: We haven&rsquo t receive the formal commitment. Of course we will push them to approve as soon as possible. Because I know only when going to mainboard, a lot of funds or institutions will be able to take part in our company.
Maybank Head of Research: Ok. Final 2 questions. Can you talk a little bit of sustainability efforts in your business. It should be (inaudible) &ldquo S&rdquo in ESG social component. We have seen a lot of competitors accused of human rights abuses, local rights issue things like that. How are you managing this and what sort of safeguards have you put in place?
William: Ok. So we have been working with many famous international brands for many years and they are very keen in this kind of ESG issues and so of course we always observe the local authorities regulations and everything. So we actually have our sustainability report for years and also in 2020, 2021, if you visit our website, we have 1 page dedicated for CSR. There are like numerous donations to different parts of the world, more than 10 countries and we are inviting more and more partners, together we can help more people in need. So it is a good CSR and it is a good opportunity for us to promote brand visibility to different regions.
Maybank Head of Research: Ok. Final question, very quickly. You know, what&rsquo s your guidance for earnings growth for 2021 and where do you think the margins will land?
William: Ok. Because we are just entering March and I cannot give you any specific numbers but I think DBS actually has some write-up about our industry and trend. I think it is quite good, so I think investors if interested can take that as a reference. I can assure everyone that majority of our capacity is very firm and recurring and so the baseline is there, we are just looking at the upside, at the new collections, new collaborations with our partners and hopefully we will get very fruitful results for these efforts.
Maybank Head of Research: Ok, William and James. I will like to bring the presentation to a close. Thank you very much for all the inputs today and thank you everyone for joining us this afternoon.
William: Alright. Thank you so much for hosting and thanks everyone for joining. Thanks for your support for Medtecs and don&rsquo t forget to scan these QR codes (chuckle), and share with your love ones.
 
 
 


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3jhuat
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04-Mar-2021 13:11     
 
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 Alert Admin 		With the coming transfer to mainboard Sgx Medtecs should be able to go higher than the Taiwanese TDR.
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gregtan123
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04-Mar-2021 10:24     
 
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 Alert Admin 		Though U sold but u still bother to post n scribe this out, just wanted to give a big shout out to you nqing87, will always remb this. in the unlikely event MT breaks ATH, will have a seat for you on our first class plane ride post pandemic of course. will contact u then! Big big thank you for ur sharing n service.

nqing87      ( Date: 03-Mar-2021 23:30) Posted:

As promise, like what i did last time, below is the webinar Q& A session for investors info for due dilience.. Some parts are a little jumble up and i cant figure what they are talking (which i mark as " inaudible" ).. I may not be holding Medtecs now, but i will still give my morale support to the longists.. there are plans to grow Medtecs to become sustainable in earnings, but I shall wait for better clarity on the future earnings sustainability before deciding whether to re-jeep again

Maybank Head of Research: In the presentation you talk a lot about sustainable growth. Can you talk a little a bit about, given the fact that the vaccine, generally better than expected vaccine roll out across quite a few countries, how are you thinking about this medium term sustainable growth in terms of the new products that you launching, will they be enough to offset some of the post pandemic sort of demand slackness that we may see for some of the PPE and masks.
William: Even as of today, we still see studies and articles saying that the PPE market will grow, with or without the roll out of vaccine. It is true that for some countries, the daily confirmed cases number is dropping, but the PPE demand is still stable and in some regions it is still ongoing dramatically. So it is predicted that the PPE as a market will grow for the next 3 to 5 years with the compound rate of 7-10%. So our goal is to get more and more market share and the majority of our current orders are actually recurring orders. These are our old customers or customers we started to serve from last year, they also form a sticky relationship with us. So the majority of our capacity is to satisfy our existing customers. And of course we still reserve about 15-20% for spot buying customers or new enquiries. So on the PPE side I think it is quite stable and price wise is also quite stable. And of course while looking into others opportunities, we want to maximise the utilisation of our cash position to perform some synergies to our current network and capabilities. So this is our strategy on sustainability.
Maybank Head of Research: It&rsquo s interesting that you talked about quite a lot of your sales are actually going to your existing customers. Can you give us a little more clarity in terms of how much of 2021 revenue is actually coming from the existing customers or already contracted out?
William: I cannot share with you the exact number but I always say the majority which is quite a big portion, and I think the least we have to worry about is the capacity issue because we outsource a portion of our workload to our allies so even if there is a huge demand, we can still ramp up in a shortest amount of time. So we won&rsquo t give up new customers or opportunities because of our existing (inaudible).
Maybank Head of Research: Can you talk a little bit about how you are seeing overall PPE pricing and mask pricing currently and how you expect that it to (inaudible) as it going this year and maybe even beyond.
William: Ok for the regular 3 ply mask, I think the price is about the same or slightly lower than pre-covid, but it is quite stable now. For higher end mask, for example N95, (inaudible), is still quite expensive. It is still a lot higher than pre-covid. For other PPE like isolation gowns and coverall, it is like 5-15% higher than pre-covid. I mean the current market buying price. So it is quite stable and I expect the price level to maintain at least for 2021.
Maybank Head of Research: Got it. We getting quite a lot of questions in terms of shareholder returns, particularly in terms of dividends. Can you talk about the dividend policy as we go forward, given the fact that you have quite a strong sort of earnings coming through. Would you look at a more formalise policy, you know maybe more than 1 dividend a year, quarterly dividend and so on. And also can you talk a little about share buybacks, given the fact that you have quite a bit of cash on your balance sheet.
William: On the dividend policy, actually we still have discussions over it and because as you see from our financial charts and figures, our company experience a huge transformation in the past 12 mths and we are also observing a lot of opportunities in the market, whether to establish new production lines to M& A, JV with partners, these all require cash injections or resources, which is why we cannot or we did not announce a fix dividend policy previously, but of course we want to reward our long term shareholders so we actually announce 2 dividends throughout the year in the past 12 mths. So we want to guarantee our shareholders benefit and at the same time, we want to grab the opportunity in the market, so we can actually maintain a strong sustainable growth. But I think we will have a more concrete policy around next board meeting, which is also around the next AGM end of April.
Maybank Head of Research: I want to talk about your operations. Given the fact that you mention that you want to grab opportunities and again when I look at the balance sheet and I look at the level of cash that you have, can you talk a little about how you thinking about acquisitions. Are you looking at more (inaudible), or more transformational acquisitions. Can you talk a little about that and then I have follow up question after that.
James (Financial officer): With regards to M& A, I think as you can see in this slides, we are trying to build the resilience supply chain. Nowadays you can see that we have our JV, start out strategic partnership, and now we are looking at several projects to see what kind of business opportunities we can have. So I think in this coming year, capex definitely will be higher than last year. That&rsquo s why we are thinking about a long term dividend policy (inaudible).
William: Also I think I address the question about share buyback. So of course because we already have the mandate, so the company has agreed to execute the share buyback anytime. So, whenever we need it, we do it immediately. So, I think our shareholders rest assured that the company will act when it is needed. (Some internal chatting going on after that and I will skip that)
Maybank Head of Research: Would you be looking at any sort of threats in acquisition. Is that something you are comfortable with or would you actually have some sort of safeguards for that?
William: Sorry can you repeat the question again?
Maybank Head of Research: The question is there will be threat of someone wanted to acquire you and take you up given the fact there are much large PPE makers globally. Because you have all these plans and things like that, it makes you an attractive target. What are your thoughts on that?
William: I think we are gladder if people are actually looking at our outlook and strategy and think we are a growth stock and which is worth their effort to get a portion of our stock. I think with the current p/e ratio and stuff, I think of course some people might think our stock price is undervalue and becomes a target, but we will just focus on the company&rsquo s sustainability and growth and if that happens, the management has already fair amount of shares, so I think that is not our major concern at this point. I myself has already acquired I think 1.5mil shares in the past 2-3 mths. And I think, I don&rsquo t think I can say (chuckle). So we are also in the position to acquire more if necessary.
Maybank Head of Research: Thanks for the answer. I wanted to shift the focus a little bit to your operation side. Maybe can you give us a little update on the current status of the government stockpiling, where do you think they are in the cycle. Is there more to come, in terms of how you all positioning there.
William: Ok. A lot of spud buying occurs last year because they need to purchase a huge amount to close the gap for their immediate use and some governments or some countries are still facing the same situation with the gown, but some countries because they ram up their stockpile, so they are buying on a replenish or a replacement basis instead of buying a huge chunk in one order, so we are now receiving orders and enquiries about like replacement/replenishment, those are the recurring order, long term orders. We are also still seeing like a huge tender, there could be like 20mil pieces of coverall and gowns we are still seeing enquiries like that. So it depends on different countries. For us, because our business model takes time to educate our customers and for them to set up the budget, so for the most part, most of our customers are still performing outright buying from us. But some are already trying to pass the budget for different options provided by Medtecs. And for (inaudible) we are already servicing lots of their national stockpiling, and I believe being the head of CPMP, we will play the most important role for Philippines national stockpiling.
Maybank Head of Research: Can you talk a little bit about your US operation. What is the current status of that, what are the expansion plans there, and also maybe talk a little bit about how you actually plan to expand market share in that market.
William: So for US operation, the main focus was on face masks. That is the phase one. I think we started producing and selling Medtecs branded USA made masks end of last year and we observe that the selling of local made face masks actually slow down because people actually consume face masks everyday, the quantity is enormous. So a lot of the time the demand is still price drive and USA made masks is expensive comparing to Philippines made for example. So when we offer both options to our customers, they will prepare the cheaper version or cheaper offering. I mean there is still a niche market for USA made masks, but the demand is not that huge. But fortunately, when we adapt this USA strategy, it&rsquo s more like a test site, so we partner up with a local vendor of face masks, so the investment is minimal so it won&rsquo t become a burden later on. We still monitor the local market demand and so far the sales generated by USA corporation project is I think less than, it&rsquo s minimal. But the investment is also at a minimal, which is why our flexible strategy proves to be a right decision.
Maybank Head of Research: So in that case if we look at the current status of vaccine roll out, you know in Asia, probably Singapore is going to be the first country to get to herd immunity. Some of the countries are behind. And if you look at the European and USA situation, where are you most optimistic in terms of continued demand for your products, because you are talking about sustainable growth and (inaudible) as we go into say 2022.
William: Ok, so this demand of PPE has been there for 50, 60 years. So this is not something that just came out last year. So we have been doing, making PPE for over 20 years. We have been competing with China vendors for 20 years, price wise or (inaudible), and the market is still expanding with or without vaccine. And I think as many of you have heard, many countries are moving their sourcing team or they are going outside of China or they are going to diversify their source, and we are probably the strongest, biggest PPE manufacturer outside of China, which is why we still receive lots of enquiries. Also even post covid, the PPE demand is still there and we are just getting stronger and stronger. And we are not just making the non-woven products, we have very comprehensive offerings. For example we also offered gloves and syringes and other medical devices. So we are acting as the first multinational group purchasing organisation in Asia because we are selling to Taiwan, Singapore, Philippine, Cambodia and other countries to their hospitals directly. So the utilisation rate remains very high and that part of the business is very firm, not to mention the top 10 GPO or medical distribution channels in US. Out of the top 10 suppliers or vendors, at least 3 or 4 of them are buying from us. So this is also a very steady business with big volume. So I&rsquo m not quite worried about the PPE selling and utilisation of our capacity.
Maybank Head of Research: Got it. Just ask 1 more question before we change direction. You know you talk about building a supply chain and making it sustainable as part of your presentation. How sustainable you think it is versus say someone else also coming in directly (inaudible) supply chain, especially we have Malaysian producers who have very strong capital levels and very (inaudible) balance sheet as well. So what makes your supply chain more resilient than somebody else.
William: Ok, so if we look at this chart, we actually partner up with the buyer. So we form JV with the buyer. Because how can they get the assurance that they will get the products for delivery in times of pandemic. So they want to actually get a portion of share in Medtecs, so they will have influence and some control over our capabilities of our output. So we reach out to the raw material suppliers, we also reach out to the distribution channels and end users, and it will be an interesting combination of partnership if we have the raw material supplier, the manufacturer Medtecs and the end buyer all join up. So in the pre-covid situation they are just buying materials, they are just buying products. But now we actually form a company. So this company will (inaudible) raw material purchasing orders from the raw material suppliers and we will also have long term commitment from the end users. Because the interest is mutual or commonly share by all parties. So this is the future supply chain and this is what we are doing actually. So we have participants from the raw material suppliers and the end users. So everyone will do their part and role and it will be a long term commitment. And everyone will enjoy a steady, sustainable business stream.
Maybank Head of Research: Ok. You talk about product launches and things like that. Can you talk a little about your B2C (inaudible), how do you deal with the competitive pressures in B2C strategy, versus dealing with B2B or B2G.
William: Ok. So this is different from what we did in the last 30 years. So a lot of investors or institutions are asking about capacity or the capex. I think that is the least we have to worry about because we have a lot of potential investors who are willing to inject resources, cash into our company. So I&rsquo m not worry at all. And capex we can easily ram up, because we already have the network, we already have the cash. So I think they key for 2020 and 2021 is actually branding. So as you mention B2C we need branding. We need to have branding ability, we need to have more exposure online and offline, which is why the next slide I also show you our first branded video on youtube actually generated 2million views in 2 mths time. I think it is like the record high for our industry, for any brands, US or international brands. So we are putting a lot of efforts on brand awareness. So we are actually putting resources, time and money to actually get more and more fans, exposure, visibility. So these products, those are not like medical products. These are like (inaudible) and we are also working with other famous brands, local brands and international brands. You will see the kick-off event soon so we will have lots of that in the next 2 mths time. We also have flash store to further promote our Medtecs Shield products, and the concept of future personal protection. So we are putting more efforts on this kind of long term brand awareness and (inaudible) B2C products.
Maybank Head of Research: When do you think majority of these products will be widely available?
William: In less than 2 mths, some products will be available in April. The first 5 will be available in April and more will come in like 2,3 mths.
Maybank Head of Research: Got it. I just want to change the direction a little bit. I&rsquo m aware of the time but we have a lot of questions on, you know the status of your mainboard listing in SGX, where is the progress in that?
William: Ok. So we already submitted our application. I think the stock exchange main concern is to see our full year results and now that we already release our 2020 full year results, I think they will be more confident with us and with our future outlook, they understand that this business and this model will be sustainable, so I think they will have an easier time to make a quick approval.
Maybank Head of Research: Did they indicate any sort of time after your full year results (inaudible).
William: We haven&rsquo t receive the formal commitment. Of course we will push them to approve as soon as possible. Because I know only when going to mainboard, a lot of funds or institutions will be able to take part in our company.
Maybank Head of Research: Ok. Final 2 questions. Can you talk a little bit of sustainability efforts in your business. It should be (inaudible) &ldquo S&rdquo in ESG social component. We have seen a lot of competitors accused of human rights abuses, local rights issue things like that. How are you managing this and what sort of safeguards have you put in place?
William: Ok. So we have been working with many famous international brands for many years and they are very keen in this kind of ESG issues and so of course we always observe the local authorities regulations and everything. So we actually have our sustainability report for years and also in 2020, 2021, if you visit our website, we have 1 page dedicated for CSR. There are like numerous donations to different parts of the world, more than 10 countries and we are inviting more and more partners, together we can help more people in need. So it is a good CSR and it is a good opportunity for us to promote brand visibility to different regions.
Maybank Head of Research: Ok. Final question, very quickly. You know, what&rsquo s your guidance for earnings growth for 2021 and where do you think the margins will land?
William: Ok. Because we are just entering March and I cannot give you any specific numbers but I think DBS actually has some write-up about our industry and trend. I think it is quite good, so I think investors if interested can take that as a reference. I can assure everyone that majority of our capacity is very firm and recurring and so the baseline is there, we are just looking at the upside, at the new collections, new collaborations with our partners and hopefully we will get very fruitful results for these efforts.
Maybank Head of Research: Ok, William and James. I will like to bring the presentation to a close. Thank you very much for all the inputs today and thank you everyone for joining us this afternoon.
William: Alright. Thank you so much for hosting and thanks everyone for joining. Thanks for your support for Medtecs and don&rsquo t forget to scan these QR codes (chuckle), and share with your love ones.
 
 
 

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chriscl
Member
04-Mar-2021 10:18     
 
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 Alert Admin 		Thks for the write-up on medtecs webinar. Still holding about XXXXX shares which I won' t be disposing yet. as these are all paper profit gainslaugh

nqing87      ( Date: 03-Mar-2021 23:30) Posted:

As promise, like what i did last time, below is the webinar Q& A session for investors info for due dilience.. Some parts are a little jumble up and i cant figure what they are talking (which i mark as " inaudible" ).. I may not be holding Medtecs now, but i will still give my morale support to the longists.. there are plans to grow Medtecs to become sustainable in earnings, but I shall wait for better clarity on the future earnings sustainability before deciding whether to re-jeep again

Maybank Head of Research: In the presentation you talk a lot about sustainable growth. Can you talk a little a bit about, given the fact that the vaccine, generally better than expected vaccine roll out across quite a few countries, how are you thinking about this medium term sustainable growth in terms of the new products that you launching, will they be enough to offset some of the post pandemic sort of demand slackness that we may see for some of the PPE and masks.
William: Even as of today, we still see studies and articles saying that the PPE market will grow, with or without the roll out of vaccine. It is true that for some countries, the daily confirmed cases number is dropping, but the PPE demand is still stable and in some regions it is still ongoing dramatically. So it is predicted that the PPE as a market will grow for the next 3 to 5 years with the compound rate of 7-10%. So our goal is to get more and more market share and the majority of our current orders are actually recurring orders. These are our old customers or customers we started to serve from last year, they also form a sticky relationship with us. So the majority of our capacity is to satisfy our existing customers. And of course we still reserve about 15-20% for spot buying customers or new enquiries. So on the PPE side I think it is quite stable and price wise is also quite stable. And of course while looking into others opportunities, we want to maximise the utilisation of our cash position to perform some synergies to our current network and capabilities. So this is our strategy on sustainability.
Maybank Head of Research: It&rsquo s interesting that you talked about quite a lot of your sales are actually going to your existing customers. Can you give us a little more clarity in terms of how much of 2021 revenue is actually coming from the existing customers or already contracted out?
William: I cannot share with you the exact number but I always say the majority which is quite a big portion, and I think the least we have to worry about is the capacity issue because we outsource a portion of our workload to our allies so even if there is a huge demand, we can still ramp up in a shortest amount of time. So we won&rsquo t give up new customers or opportunities because of our existing (inaudible).
Maybank Head of Research: Can you talk a little bit about how you are seeing overall PPE pricing and mask pricing currently and how you expect that it to (inaudible) as it going this year and maybe even beyond.
William: Ok for the regular 3 ply mask, I think the price is about the same or slightly lower than pre-covid, but it is quite stable now. For higher end mask, for example N95, (inaudible), is still quite expensive. It is still a lot higher than pre-covid. For other PPE like isolation gowns and coverall, it is like 5-15% higher than pre-covid. I mean the current market buying price. So it is quite stable and I expect the price level to maintain at least for 2021.
Maybank Head of Research: Got it. We getting quite a lot of questions in terms of shareholder returns, particularly in terms of dividends. Can you talk about the dividend policy as we go forward, given the fact that you have quite a strong sort of earnings coming through. Would you look at a more formalise policy, you know maybe more than 1 dividend a year, quarterly dividend and so on. And also can you talk a little about share buybacks, given the fact that you have quite a bit of cash on your balance sheet.
William: On the dividend policy, actually we still have discussions over it and because as you see from our financial charts and figures, our company experience a huge transformation in the past 12 mths and we are also observing a lot of opportunities in the market, whether to establish new production lines to M& A, JV with partners, these all require cash injections or resources, which is why we cannot or we did not announce a fix dividend policy previously, but of course we want to reward our long term shareholders so we actually announce 2 dividends throughout the year in the past 12 mths. So we want to guarantee our shareholders benefit and at the same time, we want to grab the opportunity in the market, so we can actually maintain a strong sustainable growth. But I think we will have a more concrete policy around next board meeting, which is also around the next AGM end of April.
Maybank Head of Research: I want to talk about your operations. Given the fact that you mention that you want to grab opportunities and again when I look at the balance sheet and I look at the level of cash that you have, can you talk a little about how you thinking about acquisitions. Are you looking at more (inaudible), or more transformational acquisitions. Can you talk a little about that and then I have follow up question after that.
James (Financial officer): With regards to M& A, I think as you can see in this slides, we are trying to build the resilience supply chain. Nowadays you can see that we have our JV, start out strategic partnership, and now we are looking at several projects to see what kind of business opportunities we can have. So I think in this coming year, capex definitely will be higher than last year. That&rsquo s why we are thinking about a long term dividend policy (inaudible).
William: Also I think I address the question about share buyback. So of course because we already have the mandate, so the company has agreed to execute the share buyback anytime. So, whenever we need it, we do it immediately. So, I think our shareholders rest assured that the company will act when it is needed. (Some internal chatting going on after that and I will skip that)
Maybank Head of Research: Would you be looking at any sort of threats in acquisition. Is that something you are comfortable with or would you actually have some sort of safeguards for that?
William: Sorry can you repeat the question again?
Maybank Head of Research: The question is there will be threat of someone wanted to acquire you and take you up given the fact there are much large PPE makers globally. Because you have all these plans and things like that, it makes you an attractive target. What are your thoughts on that?
William: I think we are gladder if people are actually looking at our outlook and strategy and think we are a growth stock and which is worth their effort to get a portion of our stock. I think with the current p/e ratio and stuff, I think of course some people might think our stock price is undervalue and becomes a target, but we will just focus on the company&rsquo s sustainability and growth and if that happens, the management has already fair amount of shares, so I think that is not our major concern at this point. I myself has already acquired I think 1.5mil shares in the past 2-3 mths. And I think, I don&rsquo t think I can say (chuckle). So we are also in the position to acquire more if necessary.
Maybank Head of Research: Thanks for the answer. I wanted to shift the focus a little bit to your operation side. Maybe can you give us a little update on the current status of the government stockpiling, where do you think they are in the cycle. Is there more to come, in terms of how you all positioning there.
William: Ok. A lot of spud buying occurs last year because they need to purchase a huge amount to close the gap for their immediate use and some governments or some countries are still facing the same situation with the gown, but some countries because they ram up their stockpile, so they are buying on a replenish or a replacement basis instead of buying a huge chunk in one order, so we are now receiving orders and enquiries about like replacement/replenishment, those are the recurring order, long term orders. We are also still seeing like a huge tender, there could be like 20mil pieces of coverall and gowns we are still seeing enquiries like that. So it depends on different countries. For us, because our business model takes time to educate our customers and for them to set up the budget, so for the most part, most of our customers are still performing outright buying from us. But some are already trying to pass the budget for different options provided by Medtecs. And for (inaudible) we are already servicing lots of their national stockpiling, and I believe being the head of CPMP, we will play the most important role for Philippines national stockpiling.
Maybank Head of Research: Can you talk a little bit about your US operation. What is the current status of that, what are the expansion plans there, and also maybe talk a little bit about how you actually plan to expand market share in that market.
William: So for US operation, the main focus was on face masks. That is the phase one. I think we started producing and selling Medtecs branded USA made masks end of last year and we observe that the selling of local made face masks actually slow down because people actually consume face masks everyday, the quantity is enormous. So a lot of the time the demand is still price drive and USA made masks is expensive comparing to Philippines made for example. So when we offer both options to our customers, they will prepare the cheaper version or cheaper offering. I mean there is still a niche market for USA made masks, but the demand is not that huge. But fortunately, when we adapt this USA strategy, it&rsquo s more like a test site, so we partner up with a local vendor of face masks, so the investment is minimal so it won&rsquo t become a burden later on. We still monitor the local market demand and so far the sales generated by USA corporation project is I think less than, it&rsquo s minimal. But the investment is also at a minimal, which is why our flexible strategy proves to be a right decision.
Maybank Head of Research: So in that case if we look at the current status of vaccine roll out, you know in Asia, probably Singapore is going to be the first country to get to herd immunity. Some of the countries are behind. And if you look at the European and USA situation, where are you most optimistic in terms of continued demand for your products, because you are talking about sustainable growth and (inaudible) as we go into say 2022.
William: Ok, so this demand of PPE has been there for 50, 60 years. So this is not something that just came out last year. So we have been doing, making PPE for over 20 years. We have been competing with China vendors for 20 years, price wise or (inaudible), and the market is still expanding with or without vaccine. And I think as many of you have heard, many countries are moving their sourcing team or they are going outside of China or they are going to diversify their source, and we are probably the strongest, biggest PPE manufacturer outside of China, which is why we still receive lots of enquiries. Also even post covid, the PPE demand is still there and we are just getting stronger and stronger. And we are not just making the non-woven products, we have very comprehensive offerings. For example we also offered gloves and syringes and other medical devices. So we are acting as the first multinational group purchasing organisation in Asia because we are selling to Taiwan, Singapore, Philippine, Cambodia and other countries to their hospitals directly. So the utilisation rate remains very high and that part of the business is very firm, not to mention the top 10 GPO or medical distribution channels in US. Out of the top 10 suppliers or vendors, at least 3 or 4 of them are buying from us. So this is also a very steady business with big volume. So I&rsquo m not quite worried about the PPE selling and utilisation of our capacity.
Maybank Head of Research: Got it. Just ask 1 more question before we change direction. You know you talk about building a supply chain and making it sustainable as part of your presentation. How sustainable you think it is versus say someone else also coming in directly (inaudible) supply chain, especially we have Malaysian producers who have very strong capital levels and very (inaudible) balance sheet as well. So what makes your supply chain more resilient than somebody else.
William: Ok, so if we look at this chart, we actually partner up with the buyer. So we form JV with the buyer. Because how can they get the assurance that they will get the products for delivery in times of pandemic. So they want to actually get a portion of share in Medtecs, so they will have influence and some control over our capabilities of our output. So we reach out to the raw material suppliers, we also reach out to the distribution channels and end users, and it will be an interesting combination of partnership if we have the raw material supplier, the manufacturer Medtecs and the end buyer all join up. So in the pre-covid situation they are just buying materials, they are just buying products. But now we actually form a company. So this company will (inaudible) raw material purchasing orders from the raw material suppliers and we will also have long term commitment from the end users. Because the interest is mutual or commonly share by all parties. So this is the future supply chain and this is what we are doing actually. So we have participants from the raw material suppliers and the end users. So everyone will do their part and role and it will be a long term commitment. And everyone will enjoy a steady, sustainable business stream.
Maybank Head of Research: Ok. You talk about product launches and things like that. Can you talk a little about your B2C (inaudible), how do you deal with the competitive pressures in B2C strategy, versus dealing with B2B or B2G.
William: Ok. So this is different from what we did in the last 30 years. So a lot of investors or institutions are asking about capacity or the capex. I think that is the least we have to worry about because we have a lot of potential investors who are willing to inject resources, cash into our company. So I&rsquo m not worry at all. And capex we can easily ram up, because we already have the network, we already have the cash. So I think they key for 2020 and 2021 is actually branding. So as you mention B2C we need branding. We need to have branding ability, we need to have more exposure online and offline, which is why the next slide I also show you our first branded video on youtube actually generated 2million views in 2 mths time. I think it is like the record high for our industry, for any brands, US or international brands. So we are putting a lot of efforts on brand awareness. So we are actually putting resources, time and money to actually get more and more fans, exposure, visibility. So these products, those are not like medical products. These are like (inaudible) and we are also working with other famous brands, local brands and international brands. You will see the kick-off event soon so we will have lots of that in the next 2 mths time. We also have flash store to further promote our Medtecs Shield products, and the concept of future personal protection. So we are putting more efforts on this kind of long term brand awareness and (inaudible) B2C products.
Maybank Head of Research: When do you think majority of these products will be widely available?
William: In less than 2 mths, some products will be available in April. The first 5 will be available in April and more will come in like 2,3 mths.
Maybank Head of Research: Got it. I just want to change the direction a little bit. I&rsquo m aware of the time but we have a lot of questions on, you know the status of your mainboard listing in SGX, where is the progress in that?
William: Ok. So we already submitted our application. I think the stock exchange main concern is to see our full year results and now that we already release our 2020 full year results, I think they will be more confident with us and with our future outlook, they understand that this business and this model will be sustainable, so I think they will have an easier time to make a quick approval.
Maybank Head of Research: Did they indicate any sort of time after your full year results (inaudible).
William: We haven&rsquo t receive the formal commitment. Of course we will push them to approve as soon as possible. Because I know only when going to mainboard, a lot of funds or institutions will be able to take part in our company.
Maybank Head of Research: Ok. Final 2 questions. Can you talk a little bit of sustainability efforts in your business. It should be (inaudible) &ldquo S&rdquo in ESG social component. We have seen a lot of competitors accused of human rights abuses, local rights issue things like that. How are you managing this and what sort of safeguards have you put in place?
William: Ok. So we have been working with many famous international brands for many years and they are very keen in this kind of ESG issues and so of course we always observe the local authorities regulations and everything. So we actually have our sustainability report for years and also in 2020, 2021, if you visit our website, we have 1 page dedicated for CSR. There are like numerous donations to different parts of the world, more than 10 countries and we are inviting more and more partners, together we can help more people in need. So it is a good CSR and it is a good opportunity for us to promote brand visibility to different regions.
Maybank Head of Research: Ok. Final question, very quickly. You know, what&rsquo s your guidance for earnings growth for 2021 and where do you think the margins will land?
William: Ok. Because we are just entering March and I cannot give you any specific numbers but I think DBS actually has some write-up about our industry and trend. I think it is quite good, so I think investors if interested can take that as a reference. I can assure everyone that majority of our capacity is very firm and recurring and so the baseline is there, we are just looking at the upside, at the new collections, new collaborations with our partners and hopefully we will get very fruitful results for these efforts.
Maybank Head of Research: Ok, William and James. I will like to bring the presentation to a close. Thank you very much for all the inputs today and thank you everyone for joining us this afternoon.
William: Alright. Thank you so much for hosting and thanks everyone for joining. Thanks for your support for Medtecs and don&rsquo t forget to scan these QR codes (chuckle), and share with your love ones.
 
 
 

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Longtermer
Elite
04-Mar-2021 10:10     
 
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 Alert Admin
After webinar, there are more clarity and can see Medtecs starts to build and strengthen their PPE biz going fwd with enlarged resources and connections gained last year.

Likely to have more JV announcements and also mainboard listing approval soon.
Looking fwd to AGM next month and collect 5.5c dividend soon. Cheers. 

 

ETLee8      ( Date: 03-Mar-2021 23:35) Posted:

U are probably right as he do not seem to be worried when asked.  He may hv many rich " friends" to hold a few percent each (not exceed 5% otherwise hv to announced), perhaps even some forerunners here may be working for him too.  We just do not hv visibilty. He is in control whether to move up or dn.  Not worth spending time guessing.  It is a Shit counter.
Hope Longtimer is ok.  Wish him the best. 

Investor8      ( Date: 03-Mar-2021 13:39) Posted:

On the question of hostile takeover, my take is that, although Clement Yang and family does not have > 50% control, there are probably other big " friendly" shareholders who are in this together.  Otherwise, this company is really a very attractive target for takeover.  That being the case, they really don' t have to worry.  Cheers!!
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Joelton
Supreme
04-Mar-2021 09:38     
 
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 Alert Admin
Medtecs in joint venture with US healthcare market player
 
HEALTHCARE player Medtecs International has entered into a joint venture (JV) with ACO International to build a fully vertically integrated product development, manufacturing, sales and distribution platform.
 
ACO is a special purpose vehicle incorporated in 2015 by a group of professionals with extensive knowledge in the medical product supply chain and deep relationships across the US healthcare market, Medtecs said in a bourse filing on Tuesday.
 
ACO will assist in site selection for the construction of a personal protective equipment (PPE) production facility. Upon Medtecs' approval of the proposal site, both parties will assist JV company Resilient Medical with the purchase and development of the site, as well as all matters in relation. ACO and Medtecs will have an equal stake in Resilient Medical.
 
Medtecs' board believes the JV will allow the group to expand its manufacturing capabilities and product offerings and ultimately, expand its revenue streams.
 
The move is also in line with Medtecs' strategy to leverage ACO' s business network, resources and competitive strengths to capture increased market demand for PPE products worldwide and specifically, the US market, it said.
 
ACO has connections to " a significant network" of health systems, hospitals and healthcare-related providers and organisations. Its product development, sales and distribution capabilities will provide the group an opportunity for immediate access to the US market, Medtecs said.
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boyboy61
Supreme
04-Mar-2021 09:06     
 
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 Alert Admin 		the way I look at it, now it is up to SGX to decide on the application

stockman20      ( Date: 04-Mar-2021 08:05) Posted:

good to know. but i feel they should be more transparent in updating shareholders. prior to the news, people are still wondering whether it was a just a remark or decision. Nothing is being followed up.

nqing87      ( Date: 03-Mar-2021 23:32) Posted:

Maybank Head of Research: Got it. I just want to change the direction a little bit. Im aware of the time but we have a lot of questions on, you know the status of your mainboard listing in SGX, where is the progress in that?
William: Ok. So we already submitted our application. I think the stock exchange main concern is to see our full year results and now that we already release our 2020 full year results, I think they will be more confident with us and with our future outlook, they understand that this business and this model will be sustainable, so I think they will have an easier time to make a quick approval.
Maybank Head of Research: Did they indicate any sort of time after your full year results (inaudible).
William: We havent receive the formal commitment. Of course we will push them to approve as soon as possible. Because I know only when going to mainboard, a lot of funds or institutions will be able to take part in our company.
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stockman20
Senior
04-Mar-2021 08:05     
 
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 Alert Admin 		good to know. but i feel they should be more transparent in updating shareholders. prior to the news, people are still wondering whether it was a just a remark or decision. Nothing is being followed up.

nqing87      ( Date: 03-Mar-2021 23:32) Posted:

Maybank Head of Research: Got it. I just want to change the direction a little bit. Im aware of the time but we have a lot of questions on, you know the status of your mainboard listing in SGX, where is the progress in that?
William: Ok. So we already submitted our application. I think the stock exchange main concern is to see our full year results and now that we already release our 2020 full year results, I think they will be more confident with us and with our future outlook, they understand that this business and this model will be sustainable, so I think they will have an easier time to make a quick approval.
Maybank Head of Research: Did they indicate any sort of time after your full year results (inaudible).
William: We havent receive the formal commitment. Of course we will push them to approve as soon as possible. Because I know only when going to mainboard, a lot of funds or institutions will be able to take part in our company.

stockman20      ( Date: 03-Mar-2021 21:40) Posted:

did they even applied for the mainboard? is there is a missing link
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ballex84
Member
04-Mar-2021 04:53     
 
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 Alert Admin 		thanks so much bro!

nqing87      ( Date: 03-Mar-2021 23:30) Posted:

As promise, like what i did last time, below is the webinar Q& A session for investors info for due dilience.. Some parts are a little jumble up and i cant figure what they are talking (which i mark as " inaudible" ).. I may not be holding Medtecs now, but i will still give my morale support to the longists.. there are plans to grow Medtecs to become sustainable in earnings, but I shall wait for better clarity on the future earnings sustainability before deciding whether to re-jeep again

Maybank Head of Research: In the presentation you talk a lot about sustainable growth. Can you talk a little a bit about, given the fact that the vaccine, generally better than expected vaccine roll out across quite a few countries, how are you thinking about this medium term sustainable growth in terms of the new products that you launching, will they be enough to offset some of the post pandemic sort of demand slackness that we may see for some of the PPE and masks.
William: Even as of today, we still see studies and articles saying that the PPE market will grow, with or without the roll out of vaccine. It is true that for some countries, the daily confirmed cases number is dropping, but the PPE demand is still stable and in some regions it is still ongoing dramatically. So it is predicted that the PPE as a market will grow for the next 3 to 5 years with the compound rate of 7-10%. So our goal is to get more and more market share and the majority of our current orders are actually recurring orders. These are our old customers or customers we started to serve from last year, they also form a sticky relationship with us. So the majority of our capacity is to satisfy our existing customers. And of course we still reserve about 15-20% for spot buying customers or new enquiries. So on the PPE side I think it is quite stable and price wise is also quite stable. And of course while looking into others opportunities, we want to maximise the utilisation of our cash position to perform some synergies to our current network and capabilities. So this is our strategy on sustainability.
Maybank Head of Research: It&rsquo s interesting that you talked about quite a lot of your sales are actually going to your existing customers. Can you give us a little more clarity in terms of how much of 2021 revenue is actually coming from the existing customers or already contracted out?
William: I cannot share with you the exact number but I always say the majority which is quite a big portion, and I think the least we have to worry about is the capacity issue because we outsource a portion of our workload to our allies so even if there is a huge demand, we can still ramp up in a shortest amount of time. So we won&rsquo t give up new customers or opportunities because of our existing (inaudible).
Maybank Head of Research: Can you talk a little bit about how you are seeing overall PPE pricing and mask pricing currently and how you expect that it to (inaudible) as it going this year and maybe even beyond.
William: Ok for the regular 3 ply mask, I think the price is about the same or slightly lower than pre-covid, but it is quite stable now. For higher end mask, for example N95, (inaudible), is still quite expensive. It is still a lot higher than pre-covid. For other PPE like isolation gowns and coverall, it is like 5-15% higher than pre-covid. I mean the current market buying price. So it is quite stable and I expect the price level to maintain at least for 2021.
Maybank Head of Research: Got it. We getting quite a lot of questions in terms of shareholder returns, particularly in terms of dividends. Can you talk about the dividend policy as we go forward, given the fact that you have quite a strong sort of earnings coming through. Would you look at a more formalise policy, you know maybe more than 1 dividend a year, quarterly dividend and so on. And also can you talk a little about share buybacks, given the fact that you have quite a bit of cash on your balance sheet.
William: On the dividend policy, actually we still have discussions over it and because as you see from our financial charts and figures, our company experience a huge transformation in the past 12 mths and we are also observing a lot of opportunities in the market, whether to establish new production lines to M& A, JV with partners, these all require cash injections or resources, which is why we cannot or we did not announce a fix dividend policy previously, but of course we want to reward our long term shareholders so we actually announce 2 dividends throughout the year in the past 12 mths. So we want to guarantee our shareholders benefit and at the same time, we want to grab the opportunity in the market, so we can actually maintain a strong sustainable growth. But I think we will have a more concrete policy around next board meeting, which is also around the next AGM end of April.
Maybank Head of Research: I want to talk about your operations. Given the fact that you mention that you want to grab opportunities and again when I look at the balance sheet and I look at the level of cash that you have, can you talk a little about how you thinking about acquisitions. Are you looking at more (inaudible), or more transformational acquisitions. Can you talk a little about that and then I have follow up question after that.
James (Financial officer): With regards to M& A, I think as you can see in this slides, we are trying to build the resilience supply chain. Nowadays you can see that we have our JV, start out strategic partnership, and now we are looking at several projects to see what kind of business opportunities we can have. So I think in this coming year, capex definitely will be higher than last year. That&rsquo s why we are thinking about a long term dividend policy (inaudible).
William: Also I think I address the question about share buyback. So of course because we already have the mandate, so the company has agreed to execute the share buyback anytime. So, whenever we need it, we do it immediately. So, I think our shareholders rest assured that the company will act when it is needed. (Some internal chatting going on after that and I will skip that)
Maybank Head of Research: Would you be looking at any sort of threats in acquisition. Is that something you are comfortable with or would you actually have some sort of safeguards for that?
William: Sorry can you repeat the question again?
Maybank Head of Research: The question is there will be threat of someone wanted to acquire you and take you up given the fact there are much large PPE makers globally. Because you have all these plans and things like that, it makes you an attractive target. What are your thoughts on that?
William: I think we are gladder if people are actually looking at our outlook and strategy and think we are a growth stock and which is worth their effort to get a portion of our stock. I think with the current p/e ratio and stuff, I think of course some people might think our stock price is undervalue and becomes a target, but we will just focus on the company&rsquo s sustainability and growth and if that happens, the management has already fair amount of shares, so I think that is not our major concern at this point. I myself has already acquired I think 1.5mil shares in the past 2-3 mths. And I think, I don&rsquo t think I can say (chuckle). So we are also in the position to acquire more if necessary.
Maybank Head of Research: Thanks for the answer. I wanted to shift the focus a little bit to your operation side. Maybe can you give us a little update on the current status of the government stockpiling, where do you think they are in the cycle. Is there more to come, in terms of how you all positioning there.
William: Ok. A lot of spud buying occurs last year because they need to purchase a huge amount to close the gap for their immediate use and some governments or some countries are still facing the same situation with the gown, but some countries because they ram up their stockpile, so they are buying on a replenish or a replacement basis instead of buying a huge chunk in one order, so we are now receiving orders and enquiries about like replacement/replenishment, those are the recurring order, long term orders. We are also still seeing like a huge tender, there could be like 20mil pieces of coverall and gowns we are still seeing enquiries like that. So it depends on different countries. For us, because our business model takes time to educate our customers and for them to set up the budget, so for the most part, most of our customers are still performing outright buying from us. But some are already trying to pass the budget for different options provided by Medtecs. And for (inaudible) we are already servicing lots of their national stockpiling, and I believe being the head of CPMP, we will play the most important role for Philippines national stockpiling.
Maybank Head of Research: Can you talk a little bit about your US operation. What is the current status of that, what are the expansion plans there, and also maybe talk a little bit about how you actually plan to expand market share in that market.
William: So for US operation, the main focus was on face masks. That is the phase one. I think we started producing and selling Medtecs branded USA made masks end of last year and we observe that the selling of local made face masks actually slow down because people actually consume face masks everyday, the quantity is enormous. So a lot of the time the demand is still price drive and USA made masks is expensive comparing to Philippines made for example. So when we offer both options to our customers, they will prepare the cheaper version or cheaper offering. I mean there is still a niche market for USA made masks, but the demand is not that huge. But fortunately, when we adapt this USA strategy, it&rsquo s more like a test site, so we partner up with a local vendor of face masks, so the investment is minimal so it won&rsquo t become a burden later on. We still monitor the local market demand and so far the sales generated by USA corporation project is I think less than, it&rsquo s minimal. But the investment is also at a minimal, which is why our flexible strategy proves to be a right decision.
Maybank Head of Research: So in that case if we look at the current status of vaccine roll out, you know in Asia, probably Singapore is going to be the first country to get to herd immunity. Some of the countries are behind. And if you look at the European and USA situation, where are you most optimistic in terms of continued demand for your products, because you are talking about sustainable growth and (inaudible) as we go into say 2022.
William: Ok, so this demand of PPE has been there for 50, 60 years. So this is not something that just came out last year. So we have been doing, making PPE for over 20 years. We have been competing with China vendors for 20 years, price wise or (inaudible), and the market is still expanding with or without vaccine. And I think as many of you have heard, many countries are moving their sourcing team or they are going outside of China or they are going to diversify their source, and we are probably the strongest, biggest PPE manufacturer outside of China, which is why we still receive lots of enquiries. Also even post covid, the PPE demand is still there and we are just getting stronger and stronger. And we are not just making the non-woven products, we have very comprehensive offerings. For example we also offered gloves and syringes and other medical devices. So we are acting as the first multinational group purchasing organisation in Asia because we are selling to Taiwan, Singapore, Philippine, Cambodia and other countries to their hospitals directly. So the utilisation rate remains very high and that part of the business is very firm, not to mention the top 10 GPO or medical distribution channels in US. Out of the top 10 suppliers or vendors, at least 3 or 4 of them are buying from us. So this is also a very steady business with big volume. So I&rsquo m not quite worried about the PPE selling and utilisation of our capacity.
Maybank Head of Research: Got it. Just ask 1 more question before we change direction. You know you talk about building a supply chain and making it sustainable as part of your presentation. How sustainable you think it is versus say someone else also coming in directly (inaudible) supply chain, especially we have Malaysian producers who have very strong capital levels and very (inaudible) balance sheet as well. So what makes your supply chain more resilient than somebody else.
William: Ok, so if we look at this chart, we actually partner up with the buyer. So we form JV with the buyer. Because how can they get the assurance that they will get the products for delivery in times of pandemic. So they want to actually get a portion of share in Medtecs, so they will have influence and some control over our capabilities of our output. So we reach out to the raw material suppliers, we also reach out to the distribution channels and end users, and it will be an interesting combination of partnership if we have the raw material supplier, the manufacturer Medtecs and the end buyer all join up. So in the pre-covid situation they are just buying materials, they are just buying products. But now we actually form a company. So this company will (inaudible) raw material purchasing orders from the raw material suppliers and we will also have long term commitment from the end users. Because the interest is mutual or commonly share by all parties. So this is the future supply chain and this is what we are doing actually. So we have participants from the raw material suppliers and the end users. So everyone will do their part and role and it will be a long term commitment. And everyone will enjoy a steady, sustainable business stream.
Maybank Head of Research: Ok. You talk about product launches and things like that. Can you talk a little about your B2C (inaudible), how do you deal with the competitive pressures in B2C strategy, versus dealing with B2B or B2G.
William: Ok. So this is different from what we did in the last 30 years. So a lot of investors or institutions are asking about capacity or the capex. I think that is the least we have to worry about because we have a lot of potential investors who are willing to inject resources, cash into our company. So I&rsquo m not worry at all. And capex we can easily ram up, because we already have the network, we already have the cash. So I think they key for 2020 and 2021 is actually branding. So as you mention B2C we need branding. We need to have branding ability, we need to have more exposure online and offline, which is why the next slide I also show you our first branded video on youtube actually generated 2million views in 2 mths time. I think it is like the record high for our industry, for any brands, US or international brands. So we are putting a lot of efforts on brand awareness. So we are actually putting resources, time and money to actually get more and more fans, exposure, visibility. So these products, those are not like medical products. These are like (inaudible) and we are also working with other famous brands, local brands and international brands. You will see the kick-off event soon so we will have lots of that in the next 2 mths time. We also have flash store to further promote our Medtecs Shield products, and the concept of future personal protection. So we are putting more efforts on this kind of long term brand awareness and (inaudible) B2C products.
Maybank Head of Research: When do you think majority of these products will be widely available?
William: In less than 2 mths, some products will be available in April. The first 5 will be available in April and more will come in like 2,3 mths.
Maybank Head of Research: Got it. I just want to change the direction a little bit. I&rsquo m aware of the time but we have a lot of questions on, you know the status of your mainboard listing in SGX, where is the progress in that?
William: Ok. So we already submitted our application. I think the stock exchange main concern is to see our full year results and now that we already release our 2020 full year results, I think they will be more confident with us and with our future outlook, they understand that this business and this model will be sustainable, so I think they will have an easier time to make a quick approval.
Maybank Head of Research: Did they indicate any sort of time after your full year results (inaudible).
William: We haven&rsquo t receive the formal commitment. Of course we will push them to approve as soon as possible. Because I know only when going to mainboard, a lot of funds or institutions will be able to take part in our company.
Maybank Head of Research: Ok. Final 2 questions. Can you talk a little bit of sustainability efforts in your business. It should be (inaudible) &ldquo S&rdquo in ESG social component. We have seen a lot of competitors accused of human rights abuses, local rights issue things like that. How are you managing this and what sort of safeguards have you put in place?
William: Ok. So we have been working with many famous international brands for many years and they are very keen in this kind of ESG issues and so of course we always observe the local authorities regulations and everything. So we actually have our sustainability report for years and also in 2020, 2021, if you visit our website, we have 1 page dedicated for CSR. There are like numerous donations to different parts of the world, more than 10 countries and we are inviting more and more partners, together we can help more people in need. So it is a good CSR and it is a good opportunity for us to promote brand visibility to different regions.
Maybank Head of Research: Ok. Final question, very quickly. You know, what&rsquo s your guidance for earnings growth for 2021 and where do you think the margins will land?
William: Ok. Because we are just entering March and I cannot give you any specific numbers but I think DBS actually has some write-up about our industry and trend. I think it is quite good, so I think investors if interested can take that as a reference. I can assure everyone that majority of our capacity is very firm and recurring and so the baseline is there, we are just looking at the upside, at the new collections, new collaborations with our partners and hopefully we will get very fruitful results for these efforts.
Maybank Head of Research: Ok, William and James. I will like to bring the presentation to a close. Thank you very much for all the inputs today and thank you everyone for joining us this afternoon.
William: Alright. Thank you so much for hosting and thanks everyone for joining. Thanks for your support for Medtecs and don&rsquo t forget to scan these QR codes (chuckle), and share with your love ones.
 
 
 

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kiattttt
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03-Mar-2021 23:41     
 
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 Alert Admin 		I hope everyone here will be appreciative of whatever you are doing. Going out of the way and do something for everyone here even though you are not vested anymore. This is the exact definition of helping. You gained my respect brother.

nqing87      ( Date: 03-Mar-2021 23:30) Posted:

As promise, like what i did last time, below is the webinar Q& A session for investors info for due dilience.. Some parts are a little jumble up and i cant figure what they are talking (which i mark as " inaudible" ).. I may not be holding Medtecs now, but i will still give my morale support to the longists.. there are plans to grow Medtecs to become sustainable in earnings, but I shall wait for better clarity on the future earnings sustainability before deciding whether to re-jeep again

Maybank Head of Research: In the presentation you talk a lot about sustainable growth. Can you talk a little a bit about, given the fact that the vaccine, generally better than expected vaccine roll out across quite a few countries, how are you thinking about this medium term sustainable growth in terms of the new products that you launching, will they be enough to offset some of the post pandemic sort of demand slackness that we may see for some of the PPE and masks.
William: Even as of today, we still see studies and articles saying that the PPE market will grow, with or without the roll out of vaccine. It is true that for some countries, the daily confirmed cases number is dropping, but the PPE demand is still stable and in some regions it is still ongoing dramatically. So it is predicted that the PPE as a market will grow for the next 3 to 5 years with the compound rate of 7-10%. So our goal is to get more and more market share and the majority of our current orders are actually recurring orders. These are our old customers or customers we started to serve from last year, they also form a sticky relationship with us. So the majority of our capacity is to satisfy our existing customers. And of course we still reserve about 15-20% for spot buying customers or new enquiries. So on the PPE side I think it is quite stable and price wise is also quite stable. And of course while looking into others opportunities, we want to maximise the utilisation of our cash position to perform some synergies to our current network and capabilities. So this is our strategy on sustainability.
Maybank Head of Research: It&rsquo s interesting that you talked about quite a lot of your sales are actually going to your existing customers. Can you give us a little more clarity in terms of how much of 2021 revenue is actually coming from the existing customers or already contracted out?
William: I cannot share with you the exact number but I always say the majority which is quite a big portion, and I think the least we have to worry about is the capacity issue because we outsource a portion of our workload to our allies so even if there is a huge demand, we can still ramp up in a shortest amount of time. So we won&rsquo t give up new customers or opportunities because of our existing (inaudible).
Maybank Head of Research: Can you talk a little bit about how you are seeing overall PPE pricing and mask pricing currently and how you expect that it to (inaudible) as it going this year and maybe even beyond.
William: Ok for the regular 3 ply mask, I think the price is about the same or slightly lower than pre-covid, but it is quite stable now. For higher end mask, for example N95, (inaudible), is still quite expensive. It is still a lot higher than pre-covid. For other PPE like isolation gowns and coverall, it is like 5-15% higher than pre-covid. I mean the current market buying price. So it is quite stable and I expect the price level to maintain at least for 2021.
Maybank Head of Research: Got it. We getting quite a lot of questions in terms of shareholder returns, particularly in terms of dividends. Can you talk about the dividend policy as we go forward, given the fact that you have quite a strong sort of earnings coming through. Would you look at a more formalise policy, you know maybe more than 1 dividend a year, quarterly dividend and so on. And also can you talk a little about share buybacks, given the fact that you have quite a bit of cash on your balance sheet.
William: On the dividend policy, actually we still have discussions over it and because as you see from our financial charts and figures, our company experience a huge transformation in the past 12 mths and we are also observing a lot of opportunities in the market, whether to establish new production lines to M& A, JV with partners, these all require cash injections or resources, which is why we cannot or we did not announce a fix dividend policy previously, but of course we want to reward our long term shareholders so we actually announce 2 dividends throughout the year in the past 12 mths. So we want to guarantee our shareholders benefit and at the same time, we want to grab the opportunity in the market, so we can actually maintain a strong sustainable growth. But I think we will have a more concrete policy around next board meeting, which is also around the next AGM end of April.
Maybank Head of Research: I want to talk about your operations. Given the fact that you mention that you want to grab opportunities and again when I look at the balance sheet and I look at the level of cash that you have, can you talk a little about how you thinking about acquisitions. Are you looking at more (inaudible), or more transformational acquisitions. Can you talk a little about that and then I have follow up question after that.
James (Financial officer): With regards to M& A, I think as you can see in this slides, we are trying to build the resilience supply chain. Nowadays you can see that we have our JV, start out strategic partnership, and now we are looking at several projects to see what kind of business opportunities we can have. So I think in this coming year, capex definitely will be higher than last year. That&rsquo s why we are thinking about a long term dividend policy (inaudible).
William: Also I think I address the question about share buyback. So of course because we already have the mandate, so the company has agreed to execute the share buyback anytime. So, whenever we need it, we do it immediately. So, I think our shareholders rest assured that the company will act when it is needed. (Some internal chatting going on after that and I will skip that)
Maybank Head of Research: Would you be looking at any sort of threats in acquisition. Is that something you are comfortable with or would you actually have some sort of safeguards for that?
William: Sorry can you repeat the question again?
Maybank Head of Research: The question is there will be threat of someone wanted to acquire you and take you up given the fact there are much large PPE makers globally. Because you have all these plans and things like that, it makes you an attractive target. What are your thoughts on that?
William: I think we are gladder if people are actually looking at our outlook and strategy and think we are a growth stock and which is worth their effort to get a portion of our stock. I think with the current p/e ratio and stuff, I think of course some people might think our stock price is undervalue and becomes a target, but we will just focus on the company&rsquo s sustainability and growth and if that happens, the management has already fair amount of shares, so I think that is not our major concern at this point. I myself has already acquired I think 1.5mil shares in the past 2-3 mths. And I think, I don&rsquo t think I can say (chuckle). So we are also in the position to acquire more if necessary.
Maybank Head of Research: Thanks for the answer. I wanted to shift the focus a little bit to your operation side. Maybe can you give us a little update on the current status of the government stockpiling, where do you think they are in the cycle. Is there more to come, in terms of how you all positioning there.
William: Ok. A lot of spud buying occurs last year because they need to purchase a huge amount to close the gap for their immediate use and some governments or some countries are still facing the same situation with the gown, but some countries because they ram up their stockpile, so they are buying on a replenish or a replacement basis instead of buying a huge chunk in one order, so we are now receiving orders and enquiries about like replacement/replenishment, those are the recurring order, long term orders. We are also still seeing like a huge tender, there could be like 20mil pieces of coverall and gowns we are still seeing enquiries like that. So it depends on different countries. For us, because our business model takes time to educate our customers and for them to set up the budget, so for the most part, most of our customers are still performing outright buying from us. But some are already trying to pass the budget for different options provided by Medtecs. And for (inaudible) we are already servicing lots of their national stockpiling, and I believe being the head of CPMP, we will play the most important role for Philippines national stockpiling.
Maybank Head of Research: Can you talk a little bit about your US operation. What is the current status of that, what are the expansion plans there, and also maybe talk a little bit about how you actually plan to expand market share in that market.
William: So for US operation, the main focus was on face masks. That is the phase one. I think we started producing and selling Medtecs branded USA made masks end of last year and we observe that the selling of local made face masks actually slow down because people actually consume face masks everyday, the quantity is enormous. So a lot of the time the demand is still price drive and USA made masks is expensive comparing to Philippines made for example. So when we offer both options to our customers, they will prepare the cheaper version or cheaper offering. I mean there is still a niche market for USA made masks, but the demand is not that huge. But fortunately, when we adapt this USA strategy, it&rsquo s more like a test site, so we partner up with a local vendor of face masks, so the investment is minimal so it won&rsquo t become a burden later on. We still monitor the local market demand and so far the sales generated by USA corporation project is I think less than, it&rsquo s minimal. But the investment is also at a minimal, which is why our flexible strategy proves to be a right decision.
Maybank Head of Research: So in that case if we look at the current status of vaccine roll out, you know in Asia, probably Singapore is going to be the first country to get to herd immunity. Some of the countries are behind. And if you look at the European and USA situation, where are you most optimistic in terms of continued demand for your products, because you are talking about sustainable growth and (inaudible) as we go into say 2022.
William: Ok, so this demand of PPE has been there for 50, 60 years. So this is not something that just came out last year. So we have been doing, making PPE for over 20 years. We have been competing with China vendors for 20 years, price wise or (inaudible), and the market is still expanding with or without vaccine. And I think as many of you have heard, many countries are moving their sourcing team or they are going outside of China or they are going to diversify their source, and we are probably the strongest, biggest PPE manufacturer outside of China, which is why we still receive lots of enquiries. Also even post covid, the PPE demand is still there and we are just getting stronger and stronger. And we are not just making the non-woven products, we have very comprehensive offerings. For example we also offered gloves and syringes and other medical devices. So we are acting as the first multinational group purchasing organisation in Asia because we are selling to Taiwan, Singapore, Philippine, Cambodia and other countries to their hospitals directly. So the utilisation rate remains very high and that part of the business is very firm, not to mention the top 10 GPO or medical distribution channels in US. Out of the top 10 suppliers or vendors, at least 3 or 4 of them are buying from us. So this is also a very steady business with big volume. So I&rsquo m not quite worried about the PPE selling and utilisation of our capacity.
Maybank Head of Research: Got it. Just ask 1 more question before we change direction. You know you talk about building a supply chain and making it sustainable as part of your presentation. How sustainable you think it is versus say someone else also coming in directly (inaudible) supply chain, especially we have Malaysian producers who have very strong capital levels and very (inaudible) balance sheet as well. So what makes your supply chain more resilient than somebody else.
William: Ok, so if we look at this chart, we actually partner up with the buyer. So we form JV with the buyer. Because how can they get the assurance that they will get the products for delivery in times of pandemic. So they want to actually get a portion of share in Medtecs, so they will have influence and some control over our capabilities of our output. So we reach out to the raw material suppliers, we also reach out to the distribution channels and end users, and it will be an interesting combination of partnership if we have the raw material supplier, the manufacturer Medtecs and the end buyer all join up. So in the pre-covid situation they are just buying materials, they are just buying products. But now we actually form a company. So this company will (inaudible) raw material purchasing orders from the raw material suppliers and we will also have long term commitment from the end users. Because the interest is mutual or commonly share by all parties. So this is the future supply chain and this is what we are doing actually. So we have participants from the raw material suppliers and the end users. So everyone will do their part and role and it will be a long term commitment. And everyone will enjoy a steady, sustainable business stream.
Maybank Head of Research: Ok. You talk about product launches and things like that. Can you talk a little about your B2C (inaudible), how do you deal with the competitive pressures in B2C strategy, versus dealing with B2B or B2G.
William: Ok. So this is different from what we did in the last 30 years. So a lot of investors or institutions are asking about capacity or the capex. I think that is the least we have to worry about because we have a lot of potential investors who are willing to inject resources, cash into our company. So I&rsquo m not worry at all. And capex we can easily ram up, because we already have the network, we already have the cash. So I think they key for 2020 and 2021 is actually branding. So as you mention B2C we need branding. We need to have branding ability, we need to have more exposure online and offline, which is why the next slide I also show you our first branded video on youtube actually generated 2million views in 2 mths time. I think it is like the record high for our industry, for any brands, US or international brands. So we are putting a lot of efforts on brand awareness. So we are actually putting resources, time and money to actually get more and more fans, exposure, visibility. So these products, those are not like medical products. These are like (inaudible) and we are also working with other famous brands, local brands and international brands. You will see the kick-off event soon so we will have lots of that in the next 2 mths time. We also have flash store to further promote our Medtecs Shield products, and the concept of future personal protection. So we are putting more efforts on this kind of long term brand awareness and (inaudible) B2C products.
Maybank Head of Research: When do you think majority of these products will be widely available?
William: In less than 2 mths, some products will be available in April. The first 5 will be available in April and more will come in like 2,3 mths.
Maybank Head of Research: Got it. I just want to change the direction a little bit. I&rsquo m aware of the time but we have a lot of questions on, you know the status of your mainboard listing in SGX, where is the progress in that?
William: Ok. So we already submitted our application. I think the stock exchange main concern is to see our full year results and now that we already release our 2020 full year results, I think they will be more confident with us and with our future outlook, they understand that this business and this model will be sustainable, so I think they will have an easier time to make a quick approval.
Maybank Head of Research: Did they indicate any sort of time after your full year results (inaudible).
William: We haven&rsquo t receive the formal commitment. Of course we will push them to approve as soon as possible. Because I know only when going to mainboard, a lot of funds or institutions will be able to take part in our company.
Maybank Head of Research: Ok. Final 2 questions. Can you talk a little bit of sustainability efforts in your business. It should be (inaudible) &ldquo S&rdquo in ESG social component. We have seen a lot of competitors accused of human rights abuses, local rights issue things like that. How are you managing this and what sort of safeguards have you put in place?
William: Ok. So we have been working with many famous international brands for many years and they are very keen in this kind of ESG issues and so of course we always observe the local authorities regulations and everything. So we actually have our sustainability report for years and also in 2020, 2021, if you visit our website, we have 1 page dedicated for CSR. There are like numerous donations to different parts of the world, more than 10 countries and we are inviting more and more partners, together we can help more people in need. So it is a good CSR and it is a good opportunity for us to promote brand visibility to different regions.
Maybank Head of Research: Ok. Final question, very quickly. You know, what&rsquo s your guidance for earnings growth for 2021 and where do you think the margins will land?
William: Ok. Because we are just entering March and I cannot give you any specific numbers but I think DBS actually has some write-up about our industry and trend. I think it is quite good, so I think investors if interested can take that as a reference. I can assure everyone that majority of our capacity is very firm and recurring and so the baseline is there, we are just looking at the upside, at the new collections, new collaborations with our partners and hopefully we will get very fruitful results for these efforts.
Maybank Head of Research: Ok, William and James. I will like to bring the presentation to a close. Thank you very much for all the inputs today and thank you everyone for joining us this afternoon.
William: Alright. Thank you so much for hosting and thanks everyone for joining. Thanks for your support for Medtecs and don&rsquo t forget to scan these QR codes (chuckle), and share with your love ones.
 
 
 

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ETLee8
Master
03-Mar-2021 23:35     
 
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 Alert Admin 		U are probably right as he do not seem to be worried when asked.  He may hv many rich " friends" to hold a few percent each (not exceed 5% otherwise hv to announced), perhaps even some forerunners here may be working for him too.  We just do not hv visibilty. He is in control whether to move up or dn.  Not worth spending time guessing.  It is a Shit counter.
Hope Longtimer is ok.  Wish him the best. 

Investor8      ( Date: 03-Mar-2021 13:39) Posted:

On the question of hostile takeover, my take is that, although Clement Yang and family does not have > 50% control, there are probably other big " friendly" shareholders who are in this together.  Otherwise, this company is really a very attractive target for takeover.  That being the case, they really don' t have to worry.  Cheers!!!

ec0101      ( Date: 03-Mar-2021 13:11) Posted:

Another key item, Medtecs was asked on how worried they are about hostile takeovers by Maybank KE head.

According to William, they' re not worried about it and are actually concentrated more on " sustainability" .

It appears their 2021 plans and going forward all revolves around business sustainability (by diversification, and expansion of market shares).
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nqing87
Supreme
03-Mar-2021 23:32     
 
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 Alert Admin 		Maybank Head of Research: Got it. I just want to change the direction a little bit. Im aware of the time but we have a lot of questions on, you know the status of your mainboard listing in SGX, where is the progress in that?
William: Ok. So we already submitted our application. I think the stock exchange main concern is to see our full year results and now that we already release our 2020 full year results, I think they will be more confident with us and with our future outlook, they understand that this business and this model will be sustainable, so I think they will have an easier time to make a quick approval.
Maybank Head of Research: Did they indicate any sort of time after your full year results (inaudible).
William: We havent receive the formal commitment. Of course we will push them to approve as soon as possible. Because I know only when going to mainboard, a lot of funds or institutions will be able to take part in our company.

stockman20      ( Date: 03-Mar-2021 21:40) Posted:

did they even applied for the mainboard? is there is a missing link?

ec0101      ( Date: 03-Mar-2021 20:29) Posted:

CEO said they believe that SGX is waiting for their full-year financials before approvals so they feel that the approval shouldn' t take much longer now that their financials have been released. There is no mention about whether they are following up with SGX or not though
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nqing87
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03-Mar-2021 23:30     
 
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 Alert Admin 		As promise, like what i did last time, below is the webinar Q& A session for investors info for due dilience.. Some parts are a little jumble up and i cant figure what they are talking (which i mark as " inaudible" ).. I may not be holding Medtecs now, but i will still give my morale support to the longists.. there are plans to grow Medtecs to become sustainable in earnings, but I shall wait for better clarity on the future earnings sustainability before deciding whether to re-jeep again

Maybank Head of Research: In the presentation you talk a lot about sustainable growth. Can you talk a little a bit about, given the fact that the vaccine, generally better than expected vaccine roll out across quite a few countries, how are you thinking about this medium term sustainable growth in terms of the new products that you launching, will they be enough to offset some of the post pandemic sort of demand slackness that we may see for some of the PPE and masks.
William: Even as of today, we still see studies and articles saying that the PPE market will grow, with or without the roll out of vaccine. It is true that for some countries, the daily confirmed cases number is dropping, but the PPE demand is still stable and in some regions it is still ongoing dramatically. So it is predicted that the PPE as a market will grow for the next 3 to 5 years with the compound rate of 7-10%. So our goal is to get more and more market share and the majority of our current orders are actually recurring orders. These are our old customers or customers we started to serve from last year, they also form a sticky relationship with us. So the majority of our capacity is to satisfy our existing customers. And of course we still reserve about 15-20% for spot buying customers or new enquiries. So on the PPE side I think it is quite stable and price wise is also quite stable. And of course while looking into others opportunities, we want to maximise the utilisation of our cash position to perform some synergies to our current network and capabilities. So this is our strategy on sustainability.
Maybank Head of Research: It&rsquo s interesting that you talked about quite a lot of your sales are actually going to your existing customers. Can you give us a little more clarity in terms of how much of 2021 revenue is actually coming from the existing customers or already contracted out?
William: I cannot share with you the exact number but I always say the majority which is quite a big portion, and I think the least we have to worry about is the capacity issue because we outsource a portion of our workload to our allies so even if there is a huge demand, we can still ramp up in a shortest amount of time. So we won&rsquo t give up new customers or opportunities because of our existing (inaudible).
Maybank Head of Research: Can you talk a little bit about how you are seeing overall PPE pricing and mask pricing currently and how you expect that it to (inaudible) as it going this year and maybe even beyond.
William: Ok for the regular 3 ply mask, I think the price is about the same or slightly lower than pre-covid, but it is quite stable now. For higher end mask, for example N95, (inaudible), is still quite expensive. It is still a lot higher than pre-covid. For other PPE like isolation gowns and coverall, it is like 5-15% higher than pre-covid. I mean the current market buying price. So it is quite stable and I expect the price level to maintain at least for 2021.
Maybank Head of Research: Got it. We getting quite a lot of questions in terms of shareholder returns, particularly in terms of dividends. Can you talk about the dividend policy as we go forward, given the fact that you have quite a strong sort of earnings coming through. Would you look at a more formalise policy, you know maybe more than 1 dividend a year, quarterly dividend and so on. And also can you talk a little about share buybacks, given the fact that you have quite a bit of cash on your balance sheet.
William: On the dividend policy, actually we still have discussions over it and because as you see from our financial charts and figures, our company experience a huge transformation in the past 12 mths and we are also observing a lot of opportunities in the market, whether to establish new production lines to M& A, JV with partners, these all require cash injections or resources, which is why we cannot or we did not announce a fix dividend policy previously, but of course we want to reward our long term shareholders so we actually announce 2 dividends throughout the year in the past 12 mths. So we want to guarantee our shareholders benefit and at the same time, we want to grab the opportunity in the market, so we can actually maintain a strong sustainable growth. But I think we will have a more concrete policy around next board meeting, which is also around the next AGM end of April.
Maybank Head of Research: I want to talk about your operations. Given the fact that you mention that you want to grab opportunities and again when I look at the balance sheet and I look at the level of cash that you have, can you talk a little about how you thinking about acquisitions. Are you looking at more (inaudible), or more transformational acquisitions. Can you talk a little about that and then I have follow up question after that.
James (Financial officer): With regards to M& A, I think as you can see in this slides, we are trying to build the resilience supply chain. Nowadays you can see that we have our JV, start out strategic partnership, and now we are looking at several projects to see what kind of business opportunities we can have. So I think in this coming year, capex definitely will be higher than last year. That&rsquo s why we are thinking about a long term dividend policy (inaudible).
William: Also I think I address the question about share buyback. So of course because we already have the mandate, so the company has agreed to execute the share buyback anytime. So, whenever we need it, we do it immediately. So, I think our shareholders rest assured that the company will act when it is needed. (Some internal chatting going on after that and I will skip that)
Maybank Head of Research: Would you be looking at any sort of threats in acquisition. Is that something you are comfortable with or would you actually have some sort of safeguards for that?
William: Sorry can you repeat the question again?
Maybank Head of Research: The question is there will be threat of someone wanted to acquire you and take you up given the fact there are much large PPE makers globally. Because you have all these plans and things like that, it makes you an attractive target. What are your thoughts on that?
William: I think we are gladder if people are actually looking at our outlook and strategy and think we are a growth stock and which is worth their effort to get a portion of our stock. I think with the current p/e ratio and stuff, I think of course some people might think our stock price is undervalue and becomes a target, but we will just focus on the company&rsquo s sustainability and growth and if that happens, the management has already fair amount of shares, so I think that is not our major concern at this point. I myself has already acquired I think 1.5mil shares in the past 2-3 mths. And I think, I don&rsquo t think I can say (chuckle). So we are also in the position to acquire more if necessary.
Maybank Head of Research: Thanks for the answer. I wanted to shift the focus a little bit to your operation side. Maybe can you give us a little update on the current status of the government stockpiling, where do you think they are in the cycle. Is there more to come, in terms of how you all positioning there.
William: Ok. A lot of spud buying occurs last year because they need to purchase a huge amount to close the gap for their immediate use and some governments or some countries are still facing the same situation with the gown, but some countries because they ram up their stockpile, so they are buying on a replenish or a replacement basis instead of buying a huge chunk in one order, so we are now receiving orders and enquiries about like replacement/replenishment, those are the recurring order, long term orders. We are also still seeing like a huge tender, there could be like 20mil pieces of coverall and gowns we are still seeing enquiries like that. So it depends on different countries. For us, because our business model takes time to educate our customers and for them to set up the budget, so for the most part, most of our customers are still performing outright buying from us. But some are already trying to pass the budget for different options provided by Medtecs. And for (inaudible) we are already servicing lots of their national stockpiling, and I believe being the head of CPMP, we will play the most important role for Philippines national stockpiling.
Maybank Head of Research: Can you talk a little bit about your US operation. What is the current status of that, what are the expansion plans there, and also maybe talk a little bit about how you actually plan to expand market share in that market.
William: So for US operation, the main focus was on face masks. That is the phase one. I think we started producing and selling Medtecs branded USA made masks end of last year and we observe that the selling of local made face masks actually slow down because people actually consume face masks everyday, the quantity is enormous. So a lot of the time the demand is still price drive and USA made masks is expensive comparing to Philippines made for example. So when we offer both options to our customers, they will prepare the cheaper version or cheaper offering. I mean there is still a niche market for USA made masks, but the demand is not that huge. But fortunately, when we adapt this USA strategy, it&rsquo s more like a test site, so we partner up with a local vendor of face masks, so the investment is minimal so it won&rsquo t become a burden later on. We still monitor the local market demand and so far the sales generated by USA corporation project is I think less than, it&rsquo s minimal. But the investment is also at a minimal, which is why our flexible strategy proves to be a right decision.
Maybank Head of Research: So in that case if we look at the current status of vaccine roll out, you know in Asia, probably Singapore is going to be the first country to get to herd immunity. Some of the countries are behind. And if you look at the European and USA situation, where are you most optimistic in terms of continued demand for your products, because you are talking about sustainable growth and (inaudible) as we go into say 2022.
William: Ok, so this demand of PPE has been there for 50, 60 years. So this is not something that just came out last year. So we have been doing, making PPE for over 20 years. We have been competing with China vendors for 20 years, price wise or (inaudible), and the market is still expanding with or without vaccine. And I think as many of you have heard, many countries are moving their sourcing team or they are going outside of China or they are going to diversify their source, and we are probably the strongest, biggest PPE manufacturer outside of China, which is why we still receive lots of enquiries. Also even post covid, the PPE demand is still there and we are just getting stronger and stronger. And we are not just making the non-woven products, we have very comprehensive offerings. For example we also offered gloves and syringes and other medical devices. So we are acting as the first multinational group purchasing organisation in Asia because we are selling to Taiwan, Singapore, Philippine, Cambodia and other countries to their hospitals directly. So the utilisation rate remains very high and that part of the business is very firm, not to mention the top 10 GPO or medical distribution channels in US. Out of the top 10 suppliers or vendors, at least 3 or 4 of them are buying from us. So this is also a very steady business with big volume. So I&rsquo m not quite worried about the PPE selling and utilisation of our capacity.
Maybank Head of Research: Got it. Just ask 1 more question before we change direction. You know you talk about building a supply chain and making it sustainable as part of your presentation. How sustainable you think it is versus say someone else also coming in directly (inaudible) supply chain, especially we have Malaysian producers who have very strong capital levels and very (inaudible) balance sheet as well. So what makes your supply chain more resilient than somebody else.
William: Ok, so if we look at this chart, we actually partner up with the buyer. So we form JV with the buyer. Because how can they get the assurance that they will get the products for delivery in times of pandemic. So they want to actually get a portion of share in Medtecs, so they will have influence and some control over our capabilities of our output. So we reach out to the raw material suppliers, we also reach out to the distribution channels and end users, and it will be an interesting combination of partnership if we have the raw material supplier, the manufacturer Medtecs and the end buyer all join up. So in the pre-covid situation they are just buying materials, they are just buying products. But now we actually form a company. So this company will (inaudible) raw material purchasing orders from the raw material suppliers and we will also have long term commitment from the end users. Because the interest is mutual or commonly share by all parties. So this is the future supply chain and this is what we are doing actually. So we have participants from the raw material suppliers and the end users. So everyone will do their part and role and it will be a long term commitment. And everyone will enjoy a steady, sustainable business stream.
Maybank Head of Research: Ok. You talk about product launches and things like that. Can you talk a little about your B2C (inaudible), how do you deal with the competitive pressures in B2C strategy, versus dealing with B2B or B2G.
William: Ok. So this is different from what we did in the last 30 years. So a lot of investors or institutions are asking about capacity or the capex. I think that is the least we have to worry about because we have a lot of potential investors who are willing to inject resources, cash into our company. So I&rsquo m not worry at all. And capex we can easily ram up, because we already have the network, we already have the cash. So I think they key for 2020 and 2021 is actually branding. So as you mention B2C we need branding. We need to have branding ability, we need to have more exposure online and offline, which is why the next slide I also show you our first branded video on youtube actually generated 2million views in 2 mths time. I think it is like the record high for our industry, for any brands, US or international brands. So we are putting a lot of efforts on brand awareness. So we are actually putting resources, time and money to actually get more and more fans, exposure, visibility. So these products, those are not like medical products. These are like (inaudible) and we are also working with other famous brands, local brands and international brands. You will see the kick-off event soon so we will have lots of that in the next 2 mths time. We also have flash store to further promote our Medtecs Shield products, and the concept of future personal protection. So we are putting more efforts on this kind of long term brand awareness and (inaudible) B2C products.
Maybank Head of Research: When do you think majority of these products will be widely available?
William: In less than 2 mths, some products will be available in April. The first 5 will be available in April and more will come in like 2,3 mths.
Maybank Head of Research: Got it. I just want to change the direction a little bit. I&rsquo m aware of the time but we have a lot of questions on, you know the status of your mainboard listing in SGX, where is the progress in that?
William: Ok. So we already submitted our application. I think the stock exchange main concern is to see our full year results and now that we already release our 2020 full year results, I think they will be more confident with us and with our future outlook, they understand that this business and this model will be sustainable, so I think they will have an easier time to make a quick approval.
Maybank Head of Research: Did they indicate any sort of time after your full year results (inaudible).
William: We haven&rsquo t receive the formal commitment. Of course we will push them to approve as soon as possible. Because I know only when going to mainboard, a lot of funds or institutions will be able to take part in our company.
Maybank Head of Research: Ok. Final 2 questions. Can you talk a little bit of sustainability efforts in your business. It should be (inaudible) &ldquo S&rdquo in ESG social component. We have seen a lot of competitors accused of human rights abuses, local rights issue things like that. How are you managing this and what sort of safeguards have you put in place?
William: Ok. So we have been working with many famous international brands for many years and they are very keen in this kind of ESG issues and so of course we always observe the local authorities regulations and everything. So we actually have our sustainability report for years and also in 2020, 2021, if you visit our website, we have 1 page dedicated for CSR. There are like numerous donations to different parts of the world, more than 10 countries and we are inviting more and more partners, together we can help more people in need. So it is a good CSR and it is a good opportunity for us to promote brand visibility to different regions.
Maybank Head of Research: Ok. Final question, very quickly. You know, what&rsquo s your guidance for earnings growth for 2021 and where do you think the margins will land?
William: Ok. Because we are just entering March and I cannot give you any specific numbers but I think DBS actually has some write-up about our industry and trend. I think it is quite good, so I think investors if interested can take that as a reference. I can assure everyone that majority of our capacity is very firm and recurring and so the baseline is there, we are just looking at the upside, at the new collections, new collaborations with our partners and hopefully we will get very fruitful results for these efforts.
Maybank Head of Research: Ok, William and James. I will like to bring the presentation to a close. Thank you very much for all the inputs today and thank you everyone for joining us this afternoon.
William: Alright. Thank you so much for hosting and thanks everyone for joining. Thanks for your support for Medtecs and don&rsquo t forget to scan these QR codes (chuckle), and share with your love ones.
 
 
 
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stockman20
Senior
03-Mar-2021 21:40     
 
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 Alert Admin 		did they even applied for the mainboard? is there is a missing link?

ec0101      ( Date: 03-Mar-2021 20:29) Posted:

CEO said they believe that SGX is waiting for their full-year financials before approvals so they feel that the approval shouldn' t take much longer now that their financials have been released. There is no mention about whether they are following up with SGX or not though.

stockman20      ( Date: 03-Mar-2021 19:41) Posted:

Where is the mainboard listing?
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Blue_Dragon
Member
03-Mar-2021 21:29     
 
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 Alert Admin 		Analyst will change the target price again when main board listing is approved. Stay positive and be patient..

RyanAB      ( Date: 03-Mar-2021 21:03) Posted:

Go mainboard px sure up?....i give up and take a small loss...😭 😭

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