Centurion Club: Healthcare services

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With more than 15 years in the highly competitive healthcare services industry, ISEC Healthcare 40t has established itself as a world-class provider of comprehensive eye care services and ambulatory service centres within the region.

The company dominated the healthcare services sector, winning the overall sector winner alongside growth in profit after tax (PAT) and returns to shareholders. Only TalkMed Group, best known for its oncology practices and weighted return on equity (ROE), prevented it from making a clean sweep.

ISEC Healthcare was listed in 2014 and provides services across Singapore, Malaysia and Myanmar, totalling 63,000 patient visits for general health services and 181,000 patient visits for specialised health services.  

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In FY2023 ended Dec 31, 2023, ISEC Healthcare achieved another year of record results, with revenue reaching $70 million, 11% higher than the previous record of $63 million in FY2022. This double-digit growth lifted net profit to $13.2 million, 3% higher than FY2022. “We are glad our efforts to pursue sustainable growth for our group have continued to bear fruit in FY2023,” says non-executive chairman Chong Weng Hoe.

Chong attributes the strong y-o-y revenue growth to the lifting of pandemic-era restrictions, such as the easing of international travel restrictions and movement control measures. This has led to a significant increase in patient visits and business activities, with revenue from the company’s specialised health services increasing 13% to $66 million in FY2023.

This was further supported by full-year contributions from IE Centre and Kampar Eye, which were acquired in May 2022 alongside the clinic in Kuching and added to their portfolio in FY2023.

Looking ahead, ISEC Healthcare has plans to expand its regional footprint.

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In a company announcement released on Sept 20 2024, ISEC Healthcare announced the purchase of strata-title units totalling 69,445 sq ft in an existing building to be redeveloped into a purpose-built medical centre in Kuala Lumpur.

“The additional floor space in the new premises will enable the group to serve more patients and expand the depth and breadth of its health services,” Chong adds.

The other winner in this category is TalkMed Group, a provider of medical oncology, stem cell transplants and palliative care services across Singapore, Vietnam, Hong Kong and China.

As of March, the company has nine clinics in Gleneagles Hospital Singapore, Mount Elizabeth Hospital Singapore, Mount Elizabeth Medical Centre and Mount Elizabeth Novena Specialist Centre Singapore.

Chairman Chandra Das Rajagopal Sitaram noted that while FY2023 ended Dec 31, 2023, presented various macroeconomic challenges arising from geopolitical tensions leading to monetary tightening, higher energy prices and logistical disruptions, the service sector, including the medical tourism industry, had improved performance.

The company reported a 9.4% y-o-y revenue growth to $83.8 million in FY2023, up from $76.6 million in FY2022. Net profit was $32.2 million in FY2023, a 5.3% y-o-y increase.

“Growth was primarily driven by our flagship oncology services segment, which contributed 96.7% of the group’s revenue,” he adds. This was supported by the company’s new oncology centres in China and Hong Kong, which saw an almost three-fold increase in revenue in FY2023.

“We will continue to focus on faster and more efficient client servicing across our medical centres. As a key player in the region’s medical hub, we aim to streamline our processes and optimise efficiency in delivering cancer treatments to our patients,” says Chandra in the company’s annual report.