PALETTE (0005) - REVOLUTIONIZING HEALTHCARE - PALETTE

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Mobile Healthcare Industry Summary
-$2.4 billion in revenue in 2013

-$23 billion in revenue in 2017. Estimates further growth at a CAGR of more than 35% over the next three years.

In 2014, Jack Ma declared his ambition to make CHINA's hospitals better, drugs cheaper and people healthier. Connecting patients, drugstores and doctors via the internet seemed like a lucrative model.

Moving forward, our mobile healthcare business’ BIGGEST market will still be CHINA, because of its population size and that they are a lot more advanced in the usage of Internet technology [in] everyday life,” - EG, Founder of Palette ( The Edge, July 2017)


PALETTE SUMMARY

Palette has been building the revolutionary healthcare I-MEDIC system since 2013 (Invested more than RM 10 million ) and has started to see returns on investments recently.

The most important aspect about iMedic is that it manages complete patient information because it includes radiology images such as CT Scan, MRI (Magnetic Resonance Imaging), ECG (Electrocardiography) and ultra sound images, among others.

This mimics the hospital information system in hospitals. (Thestar )

The imedic, which was developed by Palette, is used by doctors and hospitals in China, United States, Singapore and Taiwan for the management and treatment of cancer, cardiovascular and other chronic diseases.

Eg said that there are two ways the i-Medic system generates revenue.

1)It franchises the business with the platform to a franchisee in a specific territory with an upfront franchise fee.

2)It gets paid a membership fee from each user who uses the system in the cloud. This system is tiered based on the level of monitoring the patient requires.

The Main Point

1) RM 20 Million+ Worth of Contracts awarded to Palette in the past few months

2) Received a takeover offer from a "local investment fund"to acquire a controlling 51% stake in December 2016.

3) International demand for Palette's Products -Contracts awarded by Gryffin International ( China), associate companies of RKSS, one of the largest telecommunication system equipment developer and integrator in Russia, Trade Atlantis and Hsc Medical (Malaysia )

4) Palette's Market Cap is only RM 39 million at the time of writing. With international presence and connections, funds could easily push up the value of the company. The problem is that there isn't many shares available.

5) Palette's business model is recurring. This will provide a steady and increasing stream of income for the company moving forward, as the number of doctors and patients grow.

6) Palette recorded an EPS of 0.21 in its recent quarter. Net profit RM 664k vs Revenue RM 4.9M (13.5% margin ) - This proves that all the exciting stories and contracts aren't just stories. They are going to turn into real cash.

Anyway, P/E valuations and current earnings for selective Tech Stocks doesnt really matter as it varries drastically.
Uber Valuation = 68 Billion USD .
Uber Earnings = Losing Billions of Dollars

G3 Global Valuation = RM 272 million (Current share price 1.98)
G3 Global Earnings = 8 consecutive quarters of losses.

Technical Analysis.
All we need to know is that it broke out from a strong 10 year resistance of 0.12

Logically speaking...

Palette could easily be pushed up rapidly but its moving up slowly.
2 Possibilities

1) Collection - There are limited shares available and collection should be done at a low price ( 0.08 - 0.15 ). ( Haven't collect enough )

2) Distribution - If I were a "syndicate / operator / big shark " why would i distribute at 0.13 after all the effort of collecting at 0.09. I might as well distribute at 0.20 /0.30 or 0.90!

Can Palette reach 0.20 by today?
2.30p.m - 5p.m
25 August 2017.

Who Knows? After all, everyone wants to be ballin on a Friday night.wink

Trade at your own risk.
Greentrade is not responsible for any decisions made.


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