BCMALL (0187) – BCM Alliance Berhad
BCM involved in the distribution of commercial laundry equipment (15 years) & medical devices (10 years) in Malaysia. Revenue contributed by business segment
Commercial Laundry Equipment – 58.7%
Medical Devices – 37.4%
Healthcare products – 3.9%
Medical Devices – 37.4%
Healthcare products – 3.9%
Prospects:
1) Setting up of Speed Queen self-service launderette outlets
2) Continuous expansion of existing portfolio of products and brands
3) Expansion of healthcare products segment in year 2018
4) Broaden new customer base and continuous enhance relationship on existing customer base
5) Management expects medical device division to be key engine for earnings growth in the future as they expect to see slowdown in laundry equipment business due to market saturation.
6) To expand its medical devices segment, BCM acquired 51.03% stake in Cypress Medic Sdn Bhd (healthcare company), with profit guarantee of RM600K during first year.
7) Aiming to transfer from ACE market to main board in next two years
1) Setting up of Speed Queen self-service launderette outlets
2) Continuous expansion of existing portfolio of products and brands
3) Expansion of healthcare products segment in year 2018
4) Broaden new customer base and continuous enhance relationship on existing customer base
5) Management expects medical device division to be key engine for earnings growth in the future as they expect to see slowdown in laundry equipment business due to market saturation.
6) To expand its medical devices segment, BCM acquired 51.03% stake in Cypress Medic Sdn Bhd (healthcare company), with profit guarantee of RM600K during first year.
7) Aiming to transfer from ACE market to main board in next two years
Commercial laundry equipment (contributed 58% to FY17 revenue). Growth
in this segment is driven by rising popularity and demand of
self-service laundrettes, conversion of traditional laundry service to
self-service launderettes and increasing demand from healthcare services
and hospitality sectors. The successful penetration into the Borneo
region has opened new markets for BCM.
BCM has plans to set up 11 new Speed Queen self-service launderettes
and concept stores throughout Malaysia. As at end-1QFY18, the company
has set-up four outlets in Selayang, Sri Kembangan and Johor Bahru. It
is currently identifying suitable locations in Klang Valley and Johor
for the setting up of the remaining 7 outlets.
Medical devices (42% to revenue) industries. For this segment,
demand is driven by the increasing number of healthcare providers,
clinics, diagnostic imaging centres, and private and government
hospitals throughout Malaysia. In addition, the securing of new
products/brands also served to enhance the growth avenues in this
division. In Feb-18, it was appointed as the distributor for Siemens
Healthineers’ cardiac angiography system and fluoroscopy system.
Overall, demand in the medical devices segment will be driven by the
increasing need of a growing and ageing population, the promotion of
Malaysia as a medical tourism hub and its new healthcare products
segment.
New kid on the block - Healthcare products. The acquisition of a
51.03% stake in Cypress Medic in Feb would expand its reach into the
distribution of healthcare products and clinical services in the retail
market/pharmacies, which is complementary to its current distribution of
consumable medical devices. Cypress Medic’s core business is in the
trading and distribution of surgical, implants and clinical devices such
as blood pressure monitor, nebuliser, thermometer, body fat monitor and
sphygmomanometer for the medical devices market in Malaysia.
FA: Both revenue and eps in the last two quarter obviously shows a lot
of improvement, we are expecting further improve in the coming quarter
result
TA: BCM next resistance level is RM0.23, If it can break through the
resistance, we should expect it will spike up at least to RM0.275,
return to the pricing of the first day listed in Bursa market
BCM TP1 :RM0.28 TP2:RM0.3
THANK YOU FOR YOUR SUPPORT!!!
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The ideas expressed are solely the opinions of the author. Any action that you take as a result of information, analysis, or commentary on this site is ultimately your responsibility.
Consult your investment adviser before making any investment decisions
https://klse.i3investor.com/blogs/share4all/175292.jsp
