Thu, Jul 18, 2013 - Page 14 News List

Cowealth reports record profits on China demand

By Camaron Kao  /  Staff reporter

Medical equipment supplier Cowealth Medical Holding Co (合富) on Tuesday reported record profits for last quarter on the back of the growing medical market in China.

Investors welcomed the news and sent the shares of the China-focused company 1.33 percent higher to NT$84 on the GRETAI Securities Market yesterday.

The company has seen its shares rise 31.66 percent since Jan. 30, when it began trading its shares on the over-the-counter market after an initial public offering priced at NT$63.8.

Net profit increased 16.4 percent year-on-year to NT$83.8 million (US$2.8 million), or earnings per share of NT$1.55, in the April-to-June quarter, while net profit in the first half grew 52 percent to NT$152.54 million, or earnings per share of NT$2.87, the company said in an online investors’ meeting.

Revenue hit a record level of NT$740.21 million in the second quarter and accumulated revenue for the first six months expanded 19 percent to NT$1.4 billion year-on-year, the company said.

Cowealth’s main businesses include distribution and after-sales service for Accuray Inc’s CyberKnife system, which is a radiosurgery system used for treating tumors, as well as providing other diagnostics facilities and reagents to about 30 Chinese hospitals.

Sales of the CyberKnife system increased 5.8 percent year-on-year and accounted for 30.9 percent of the company’s revenue in the first half, while diagnostics facilities and reagents sales increased 25.6 percent to make up 68.9 percent of revenue, the company said.

Cowealth said revenue in the second half is likely to be lower than the first half as the company plans to sell just one Cyberknife system, down from two in the first half of the year, but the company said it expects sales to grow 20 percent year-on-year in the long term.

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