Mon, Aug 11, 2014 - Page 13 News List

Cowealth Medical profits set for annual rise of 15%

By Camaron Kao  /  Staff reporter

Medical equipment supplier Cowealth Medical Holding Co (合富醫療) said on Friday that its net profit this year would rise by an annual rate of 15 percent from NT$273.01 million (US$9.08 million) last year, although that is slower than the annual jump of 62 percent seen the previous year.

The China-focused company, which sells diagnostics facilities and reagents as well as distributing and repairing medical equipment, also forecast that revenue would grow 15 percent to NT$2.96 billion this year from last year, flat from last year’s increase to NT$2.58 billion.

Cowealth made the guidance at an investors’ conference on Friday, where the company said sales of diagnostics facilities and reagents could rise by 37.26 percent to NT$2.82 billion from NT$2.06 billion last year.

While maintenance of the Cyberknife cancer treatment system for Accuray Inc is likely to contribute NT$80 million in revenue this year, the company’s overall sales of medical equipment is predicted to drop to around NT$185.15 million this year, as its cancer treatment systems made by ViewRay Inc and dry-eye syndrome treatment equipment from TearScience Inc are awaiting certification in China and Taiwan, the company said.

Overall, the company’s net profit margin could remain at 11 percent this year from last year, Cowealth said.

Founded in 2007, the company provides customized package services of diagnostics facilities and reagents to 48 Chinese hospitals, Cowealth chairwoman Joyce Wang (王瓊芝) said, and expects to add another seven to 10 customers by the end of this year.

Wang told investors that the company plans to cooperate with local firms to offer its customized package services in Taiwan and is in talks with seven Chinese firms over a new business model there.

The company also plans to acquire three Chinese companies, which is expected to contribute NT$42 million to the company’s revenue in the second half of the year, Wang said.

From January through last month, Cowealth registered revenue of NT$1.86 billion, up 17.12 percent from NT$1.59 billion the previous year, according to the its filing with the Taiwan Stock Exchange.

In the first half of the year, the company reported net profit of NT$157 million and earnings per share of NT$2.89, compared with NT$2.87 a year earlier.

Cowealth shares rose 4.04 percent to NT$116 on Friday in Taipei trading.

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