Mon, Aug 19, 2019 – 8:27 PM

HEALTH Management International (HMI) on Monday announced net profit fell 11 per cent to 13.5 million yuan (S$2.65 million) for the fourth quarter ended June 30, down from 15.2 million yuan in the year-ago period.

This was despite revenue for the quarter rising 10 per cent to 131.1 million yuan from 119.2 million yuan in the year-ago period.

Gross profit margin decreased to 33 per cent from 34.4 per cent a year before, which HMI attributed to its new ambulatory care centre in Singapore, StarMed Specialist Centre, which started operations in Q1 2019. HMI said it expects to incur start-up costs from this care centre’s operations for potentially up to three years.

Earnings per share for the quarter were 1.61 fen, compared with 1.82 fen a year ago. No dividend was declared.

With the latest results, full-year net profit was down 19 per cent at 48.8 million yuan from 60.6 million yuan previously. Full-year revenue was up 8.9 per cent at 509.4 million yuan.

Excluding the impact of gestation costs from StarMed Specialist centre, EBITDA (earnings before interest, tax, depreciation and amortisation) would have increased 8.9 per cent year-on-year instead of 0.7 per cent, noted HMI. Core PATMI – referring to profit after tax and minority interests, excluding non-operational and one-off items – would have increased 14.2 per cent year-on-year, instead of falling 10 per cent, the company noted.

A proposed privatisation deal was announced in July, which if successful will see HMI becoming a unit of PanAsia Health and delisting from the Singapore Exchange. On Aug 13, HMI said it has applied to court for leave to convene a shareholder meeting for approval of the privatisation bid, with the application scheduled to be heard on Aug 22.