Post Reply
581-600 of 1587
PhilipCapital :: Clearbridge Health Limited
Building up the regional footprint- FY19 revenue and earnings were below expectation. FY19 revenue more than tripled to
S$21mn. CBH turned EBITDA* positive in 2H19. - The ramp-up from IGM and Philippines post-acquisition and post-renovation respectively
was slower than we expected. IGM accounts for 48% of group sales. - CBH has built an impressive regional footprint of healthcare services across the region
including Singapore, Indonesia, Philippines, Malaysia and Hong Kong. The lab test and
renal care services in Indonesia are the largest contributor to revenues.
Maintain BUY with an unchanged target price of S$0.26. Growth in FY20e will be
underpinned by acquisition IGM and Dental Focus and recovery in the Philippines. While
still loss-making, we expect the company to clock another year of positive EBITDA in
FY20e.
Stock market has always been fascinating because it showcases human psychology and behaviour.
Take Clearbridge for instance...in Dec 2017 IPO, revenue only S$0.2m but manage to raise funds at 28 cents and after IPO, chong to more than 60 cents.
2 years later at present time, revenue surged to more than S$20m revenue with EBITDA is trending upwards as well....but share price of 13.6 cents is almost at record low.
Clearbridge' s performance in the defensive healthcare industry over the past 2 years show how good the " jockey" (CEO-Jeremy Yee) is and based on this jockey' s track record in the healthcare industry, there is more to look forwad to.
Like Warren Buffet says, the stock market is a beauty pagent in the short term but a weighting machine in the long run.
Take Clearbridge for instance...in Dec 2017 IPO, revenue only S$0.2m but manage to raise funds at 28 cents and after IPO, chong to more than 60 cents.
2 years later at present time, revenue surged to more than S$20m revenue with EBITDA is trending upwards as well....but share price of 13.6 cents is almost at record low.
Clearbridge' s performance in the defensive healthcare industry over the past 2 years show how good the " jockey" (CEO-Jeremy Yee) is and based on this jockey' s track record in the healthcare industry, there is more to look forwad to.
Like Warren Buffet says, the stock market is a beauty pagent in the short term but a weighting machine in the long run.
Thought economy goes down due to virus, medic stock then will go up
futures dropping alamak..
CHIONG ARH!!!
https://research.sginvestors.io/2020/03/clearbridge-health-limited-tayrona-financial-research-2020-03-03.html
Clearbridge Health Limited - Surging Revenue Confirms High Growth Outlook
Potential Upside From Spread Of COVID-19.
Clearbridge Health Limited - Surging Revenue Confirms High Growth Outlook
Potential Upside From Spread Of COVID-19.
- As PT Indo Genesis Medika is one of the largest operators of clinical laboratories in Indonesia, we see Clearbridge Health as a potential beneficiary if Indonesia decides to allow more laboratories to test for COVID-19 infections. We understand that COVID-19 testing is currently centralised. Thus far, Indonesia has reported a handful of cases. However, it may stipulate more widespread testing given that foreign media has been questioning the low rate of infection in Indonesia.
- The COVID-19 situation also presents opportunity for the group to distribute test kits in the region.
Reports are for our references and our own due diligence is still impt in investing....which sometimes is more of an art than science...ie do you bet on the jockey or the horse?
Multi-baggers are rare to come by and the jockey (and his background and track record) definitely is an essential component.
All the best!
Multi-baggers are rare to come by and the jockey (and his background and track record) definitely is an essential component.
All the best!
Thermo Fisher to buy Qiagen for 9b euros in lab tie-up
TUE, MAR 03, 2020 - 4:12 PM
[NEW YORK] US laboratory equipment maker Thermo Fisher Scientific agreed to buy Qiagen, a Dutch maker of tests for diseases including cancer and the coronavirus, for about 9 billion euros (S$13.9 billion) after reviving discussions that broke off late last year.
Investors will get 39 euros in cash for every Qiagen share, Thermo Fisher said Tuesday. That' s 23 per cent higher than Monday' s closing price. Qiagen also sells products for food and forensic testing. Bloomberg earlier reported the companies were nearing a deal.
The purchase would be one of the largest ever for Thermo Fisher after the company acquired Life Technologies for US$13.6 billion in 2014. Healthcare deals have heated up this week after a slow start to the year, with this coming one day after Gilead Sciences agreed to buy Forty Seven for about US$4.9 billion to advance into cancer treatments.
Thermo Fisher will assume 1.26 billion euros in net debt. The company' s coronavirus test is being used at four hospitals in China and one in France. The diagnostic gives results in about one hour.
Last year, Qiagen started exploring options soon after indicating it had received overtures from several possible buyers, Bloomberg News reported.
It' s a reversal for Qiagen, which announced in December that it had ended discussions with potential buyers after finding the proposals " not compelling."
Its stock took a hit last October as Chief Executive Officer Peer Schatz announced he would step down after a 15-year run and the Dutch company slashed its forecast for quarterly sales growth.
TUE, MAR 03, 2020 - 4:12 PM
[NEW YORK] US laboratory equipment maker Thermo Fisher Scientific agreed to buy Qiagen, a Dutch maker of tests for diseases including cancer and the coronavirus, for about 9 billion euros (S$13.9 billion) after reviving discussions that broke off late last year.
Investors will get 39 euros in cash for every Qiagen share, Thermo Fisher said Tuesday. That' s 23 per cent higher than Monday' s closing price. Qiagen also sells products for food and forensic testing. Bloomberg earlier reported the companies were nearing a deal.
The purchase would be one of the largest ever for Thermo Fisher after the company acquired Life Technologies for US$13.6 billion in 2014. Healthcare deals have heated up this week after a slow start to the year, with this coming one day after Gilead Sciences agreed to buy Forty Seven for about US$4.9 billion to advance into cancer treatments.
Thermo Fisher will assume 1.26 billion euros in net debt. The company' s coronavirus test is being used at four hospitals in China and one in France. The diagnostic gives results in about one hour.
Last year, Qiagen started exploring options soon after indicating it had received overtures from several possible buyers, Bloomberg News reported.
It' s a reversal for Qiagen, which announced in December that it had ended discussions with potential buyers after finding the proposals " not compelling."
Its stock took a hit last October as Chief Executive Officer Peer Schatz announced he would step down after a 15-year run and the Dutch company slashed its forecast for quarterly sales growth.
Look at the price dropped today 😫 😫 😫
Be careful as such report set target price but often time not accurate
Overweight
Fair Value: S$0.430
Fair Value: S$0.430
Tayrona Financial Report (3 Mar 2020)
Clearbridge Health: Surging Revenue Confirms High Growth Outlook
Tayrona Financial Report (3 Mar 2020)
Clearbridge Health: Surging Revenue Confirms High Growth Outlook
▪ Second consecutive quarter of positive adjusted EBITDA as full year revenue jumped > 250%. Clearbridge announced a strong set of results with revenue reaching a record S$21.5m for FY19, following the completion of two acquisitions in 2019. Profitability also improved with the Company announcing two consecutive quarters of positive adjusted EBITDA &ndash S$0.38m in 3Q19 and S$0.55m in 4Q19. Including fair value losses and other adjustments, reported net loss narrowed to S$11.5m from S$18.9m in FY18. The growing track record of positive EBITDA and narrowing losses show that the Company is on track to turning EBITDA positive in FY20F with maiden profitability in FY21F.
▪ Expect more acquisitions to drive revenue growth and profitability. The Dental Focus Group which the Company acquired on 29 August 2019 contributed S$1.83m of revenue in 4Q19, against S$0.52m of revenue in 3Q19. PT Indo Genesis Medika (&ldquo IGM&rdquo ), which was acquired on 7 May 2019, continued to show organic growth, with revenue rising from S$3.5m in 3Q19 to S$4.4m in 4Q19. We reckon that the Company will likely maintain its pace of acquisitions to drive revenue growth and economies of scale.
▪ Potential upside from spread of COVID-19. As PT IGM is one of the largest operators of clinical laboratories in Indonesia, we see Clearbridge as a potential beneficiary if Indonesia decides to allow more laboratories to test for COVID-19 infections. We understand that COVID-19 testing is currently centralised. Thus far, Indonesia has reported a handful of cases. However, it may stipulate more widespread testing given that foreign media has been questioning the low rate of infection in Indonesia. The COVID-19 situation also presents opportunity for the group to distribute test kits in the region.
▪ Expect further corporate actions. Clearbridge listed Biolidics Limited on the SGX in December 2018. According to the Company&rsquo s most recent corporate presentation, Clearbridge has remarked that it is building a detachable healthcare group with value realisation opportunities. Eyeing the Company&rsquo s corporate structure, there could be opportunity for the Company to spin-off its Medical Clinics / Centres business or even seek listing plans overseas where valuation could be higher.
▪ &ldquo Unicorn&rdquo case remains intact. In this update, we revised our valuation to factor in the higher revenue and book value of the Company. While the peer multiples have moderated, we still derived a valuation of S$219.2m (based on P/Sales) to S$328.5m (based on P/B). The higher average value of US$284.8m (previously US$201.3m) translates to a higher per share fair value of S$0.430, based on an enlarged share capital of 659.55m shares. Key risks include the Company&rsquo s lack of track record of positive profitability which may drag on cash flows, if sustained.
I already mentioned this morning, never expected the stock price to rise just because of some investor report 🤣 🤣 🤣
Open high , close low.
Investor reports not reliable, I based on them previously n lose a lot
Managment is key
CEO with his background can be counted to execute a porrfolio strategy for exponential growth. Tenbagger equates $1.40 in 5 years😉
Today Clearbridge close green. Once market stabilise it will touch 0.16 again.
Nice increase of its revenue and cash flow that will build investor confidence
to see more growth in this company. Huat!! and hope it will Chiong all the way.
Nice increase of its revenue and cash flow that will build investor confidence
to see more growth in this company. Huat!! and hope it will Chiong all the way.
Ramster ( Date: 02-Mar-2020 10:12) Posted:
|
At least it is stabilised
Clearbridge Health: A potential ten-bagger?
Last year article but still an interesting read...
===
https://www.investor-one.com/editorial/7885-Clearbridge-Health-Loss-making-but-a-potential-ten-bagger
How do you identify currently loss-making companies that have the potential to be ten-baggers?
A ten-bagger is a stock that has a Return On Investment (ROI) of ten-fold or more. The term is also used to describe stocks with explosive growth prospects, since in general, a very high ROI must be supported by very high earnings growth.
There is no doubt that as a first step, a lot of reading is required if you are to spot a potential ten-bagger. Not only do you need to read analyst reports and company announcements of the potential ten-bagger, but you also need to read all media coverage, as well as specialist media of the industry the company is in. You then need to do a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis of the company, and whether you think the company is able to differentiate itself from competitors.
SGX Gateway recently published an article on Clearbridge (CH) in its &ldquo 10 Questions in 10 Minutes with SGX-listed Companies&rdquo series. This article, with information provided by CH&rsquo s Management, explains very clearly the essence of CH&rsquo s business, and its strategy for growth as well as for creating shareholder value. The Company believes it is just starting to reach the point of take-off to sustainable growth.
In this article, we will use quantitative tools to look for fundamental indicators to support our hypothesis that CH may be a potential ten-bagger.
But first, let&rsquo s start with a few fundamentals on the business of CH.
What is Clearbridge all about?
CH&rsquo s business can be neatly summed up as: the creation of a platform for the delivery of affordable Precision Medicine (PM) to countries in the region such as the ASEAN countries, as well as Hong Kong and China.
What is Precision Medicine?
PM is medical care designed to maximise therapeutic benefit for individuals by using genetic and molecular profiling. It takes into account, individual differences in genes, environment, and lifestyle. PM allows doctors to devise a targeted treatment taking into account each patient&rsquo s unique genetic profile and medical characteristics as obtained from analysis of the patient&rsquo s data.
The emergence of PM is due to advances in Artificial Intelligence (AI) technology, especially the new machine learning Deep Belief Neural Network and Convolutional Neural Network.
Readers might find our companion article on &ldquo A Comparison of AI for Precision Medicine and for Financial Markets&rdquo useful.
And if you want to know more about PM and AI and have a glimpse of how CH does its PM, read https://medicalfuturist.com/no-precision-medicine-without-artificial-intelligence. Here&rsquo s a quote from the article: &ldquo There is no Precision Medicine without Artificial Intelligence&rdquo .
Clearbridge&rsquo s strategy and its three business segments
Expand organically with clinics and medical centres spread throughout the region. Currently this segment has a footprint in Singapore, Malaysia, Hong Kong, and the Philippines. It also intends to acquire a majority stake in 9 Singapore dental clinics. This segment contributed 42% of FY18 revenue.
Grow its healthcare systems segments (52% of FY18 revenue) which includes joint operations and contracts for diagnostic services and renal care services in public hospitals. In Indonesia it has 13 contracts for diagnostic laboratories, and offers renal care services in 37 public hospitals. Similarly, in Singapore and the Philippines it has partnerships with hospitals to provide pathology services, imaging diagnostics, dental, dialysis and renal care services.
Invest in medical technology by the acquisition of stakes in companies with innovative and potentially disruptive, high-value medical technologies. This includes its 24.8% stake in Biolidics [Cell enrichment technology for application in cancer diagnostics and treatment] which was spun off on Catalist, and Clearbridge Photonics (High resolution imaging and therapy using photon beams. Photons are the basis of light and photonics is the science of detection, emission, transmission, and signal processing of photons).
The big picture on Precision Medicine
There is no doubt that in the big picture, CH is in a high growth business, on the cutting edge of the healthcare industry. In the SGX Gateway article, it was mentioned " Asia Pacific&rsquo s precision medicine market in 2018 was US$11.0 billion* and is anticipated to grow at a CAGR of 16.63% to hit US$20.9bn in 2023# driven by a growing ageing population, increase in healthcare awareness and affluence levels, and increased adoption of digital healthcare."
* Ken Research, &ldquo Rise in Ageing Population Followed By Need of Personal Care to Drive Precision Medicine Market in the Asia-Pacific Region&rdquo , 16 Jan 2019
# Market Watch, &ldquo Precision Medicine Market is projected to grow (CAGR) of 16.63%, leading to a revenue of USD20.90 Bn by 2023&rdquo , 6 Nov 2018
So where to look for potential ten-baggers which are currently loss-making?
Ten-baggers are born, not made. As babies, their initial revenues are miniscule. So one way to look for signs that they have a high probability of growing into giants is to see if revenue growth is exponential.
Baby ten-baggers&rsquo main problem is SCALE- the attainment of a certain size in revenue where economies of scale start to show, net margins turn positive, even as fixed costs increase at a much lower rate.
For this to happen, gross profit margins (GPM) (revenue-direct cost of sales) must be high in the first place. And GPM can be high only if the product has high value-add such as if there is proprietary design and intellectual property in it.
Table 1: Clearbridge&rsquo s revenue growth and gross profit margins
Although we only have two full years of financials, which seems a rather shaky basis for identifying potential ten-baggers, we have to remember that those who scored ten-baggers were always the early birds which caught the worm.
The basis for your decision to invest must be first and foremost based on your analysis of the prospects for the business and the industry, before you even look at the potential ten-bagger&rsquo s current financials.
For Clearbridge, the revenue growth from 2017 ($288,000) to 2018 ($6,135,000) was a phenomenal 2030%! Despite this, the Gross Profit Margin also increased by 30.7 percentage points (47%-16.3%) This is a tell-tale indicator of economies of scale beginning to bear fruit, and of high-value-add and high productivity in CH&rsquo s business.
Will this run-up continue? Well, if we look at the Trailing Twelve Month March 2019 (TTM) numbers, it certainly seems so. Revenue for TTM was S$7,912,000, an increase of 28.9% while GPM remains relatively unchanged at 46%.
Looking at CH&rsquo s 1QFY2019 results, y-o-y (1Q Mar2019 vs 1Q Mar2018), revenue increased by 438% from S$377,000 to S$2,214,000. But losses attributable to shareholders dropped from S$1,790,000 to S$94,000, a 9,300% decline! This is yet another positive indicator of the scalability of its business.
Conclusion
In general, extreme numbers are typical of potential ten-baggers. It is only when revenue, and earnings increase, or losses drop exponentially that share prices will be able to increase exponentially.
Last year article but still an interesting read...
===
https://www.investor-one.com/editorial/7885-Clearbridge-Health-Loss-making-but-a-potential-ten-bagger
How do you identify currently loss-making companies that have the potential to be ten-baggers?
A ten-bagger is a stock that has a Return On Investment (ROI) of ten-fold or more. The term is also used to describe stocks with explosive growth prospects, since in general, a very high ROI must be supported by very high earnings growth.
There is no doubt that as a first step, a lot of reading is required if you are to spot a potential ten-bagger. Not only do you need to read analyst reports and company announcements of the potential ten-bagger, but you also need to read all media coverage, as well as specialist media of the industry the company is in. You then need to do a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis of the company, and whether you think the company is able to differentiate itself from competitors.
SGX Gateway recently published an article on Clearbridge (CH) in its &ldquo 10 Questions in 10 Minutes with SGX-listed Companies&rdquo series. This article, with information provided by CH&rsquo s Management, explains very clearly the essence of CH&rsquo s business, and its strategy for growth as well as for creating shareholder value. The Company believes it is just starting to reach the point of take-off to sustainable growth.
In this article, we will use quantitative tools to look for fundamental indicators to support our hypothesis that CH may be a potential ten-bagger.
But first, let&rsquo s start with a few fundamentals on the business of CH.
What is Clearbridge all about?
CH&rsquo s business can be neatly summed up as: the creation of a platform for the delivery of affordable Precision Medicine (PM) to countries in the region such as the ASEAN countries, as well as Hong Kong and China.
What is Precision Medicine?
PM is medical care designed to maximise therapeutic benefit for individuals by using genetic and molecular profiling. It takes into account, individual differences in genes, environment, and lifestyle. PM allows doctors to devise a targeted treatment taking into account each patient&rsquo s unique genetic profile and medical characteristics as obtained from analysis of the patient&rsquo s data.
The emergence of PM is due to advances in Artificial Intelligence (AI) technology, especially the new machine learning Deep Belief Neural Network and Convolutional Neural Network.
Readers might find our companion article on &ldquo A Comparison of AI for Precision Medicine and for Financial Markets&rdquo useful.
And if you want to know more about PM and AI and have a glimpse of how CH does its PM, read https://medicalfuturist.com/no-precision-medicine-without-artificial-intelligence. Here&rsquo s a quote from the article: &ldquo There is no Precision Medicine without Artificial Intelligence&rdquo .
Clearbridge&rsquo s strategy and its three business segments
Expand organically with clinics and medical centres spread throughout the region. Currently this segment has a footprint in Singapore, Malaysia, Hong Kong, and the Philippines. It also intends to acquire a majority stake in 9 Singapore dental clinics. This segment contributed 42% of FY18 revenue.
Grow its healthcare systems segments (52% of FY18 revenue) which includes joint operations and contracts for diagnostic services and renal care services in public hospitals. In Indonesia it has 13 contracts for diagnostic laboratories, and offers renal care services in 37 public hospitals. Similarly, in Singapore and the Philippines it has partnerships with hospitals to provide pathology services, imaging diagnostics, dental, dialysis and renal care services.
Invest in medical technology by the acquisition of stakes in companies with innovative and potentially disruptive, high-value medical technologies. This includes its 24.8% stake in Biolidics [Cell enrichment technology for application in cancer diagnostics and treatment] which was spun off on Catalist, and Clearbridge Photonics (High resolution imaging and therapy using photon beams. Photons are the basis of light and photonics is the science of detection, emission, transmission, and signal processing of photons).
The big picture on Precision Medicine
There is no doubt that in the big picture, CH is in a high growth business, on the cutting edge of the healthcare industry. In the SGX Gateway article, it was mentioned " Asia Pacific&rsquo s precision medicine market in 2018 was US$11.0 billion* and is anticipated to grow at a CAGR of 16.63% to hit US$20.9bn in 2023# driven by a growing ageing population, increase in healthcare awareness and affluence levels, and increased adoption of digital healthcare."
* Ken Research, &ldquo Rise in Ageing Population Followed By Need of Personal Care to Drive Precision Medicine Market in the Asia-Pacific Region&rdquo , 16 Jan 2019
# Market Watch, &ldquo Precision Medicine Market is projected to grow (CAGR) of 16.63%, leading to a revenue of USD20.90 Bn by 2023&rdquo , 6 Nov 2018
So where to look for potential ten-baggers which are currently loss-making?
Ten-baggers are born, not made. As babies, their initial revenues are miniscule. So one way to look for signs that they have a high probability of growing into giants is to see if revenue growth is exponential.
Baby ten-baggers&rsquo main problem is SCALE- the attainment of a certain size in revenue where economies of scale start to show, net margins turn positive, even as fixed costs increase at a much lower rate.
For this to happen, gross profit margins (GPM) (revenue-direct cost of sales) must be high in the first place. And GPM can be high only if the product has high value-add such as if there is proprietary design and intellectual property in it.
Table 1: Clearbridge&rsquo s revenue growth and gross profit margins
Although we only have two full years of financials, which seems a rather shaky basis for identifying potential ten-baggers, we have to remember that those who scored ten-baggers were always the early birds which caught the worm.
The basis for your decision to invest must be first and foremost based on your analysis of the prospects for the business and the industry, before you even look at the potential ten-bagger&rsquo s current financials.
For Clearbridge, the revenue growth from 2017 ($288,000) to 2018 ($6,135,000) was a phenomenal 2030%! Despite this, the Gross Profit Margin also increased by 30.7 percentage points (47%-16.3%) This is a tell-tale indicator of economies of scale beginning to bear fruit, and of high-value-add and high productivity in CH&rsquo s business.
Will this run-up continue? Well, if we look at the Trailing Twelve Month March 2019 (TTM) numbers, it certainly seems so. Revenue for TTM was S$7,912,000, an increase of 28.9% while GPM remains relatively unchanged at 46%.
Looking at CH&rsquo s 1QFY2019 results, y-o-y (1Q Mar2019 vs 1Q Mar2018), revenue increased by 438% from S$377,000 to S$2,214,000. But losses attributable to shareholders dropped from S$1,790,000 to S$94,000, a 9,300% decline! This is yet another positive indicator of the scalability of its business.
Conclusion
In general, extreme numbers are typical of potential ten-baggers. It is only when revenue, and earnings increase, or losses drop exponentially that share prices will be able to increase exponentially.