Cowealth posts 144 percent profit rise for first quarter

By Camaron Kao  /  Staff reporter

Fri, Apr 19, 2013 - Page 13

Medical equipment supplier Cowealth Medical Co (合富) yesterday said its first-quarter profit soared by 144 percent as costs fell due to its expanded economies of scale.

Net income in the period from January through last month grew to NT$68.73 million (US$2.3 million) from NT$28.17 million a year ago, said the company, which mainly supplies medical equipment to China.

First-quarter revenue totaled NT$660.41 million, up 26 percent from the NT$524.91 million posted in the same quarter a year earlier and 44 percent from the NT$457.39 billion in the previous quarter, Cowealth said earlier this month.

The company attributed the increase to growing sales of diagnostics facilities, reagents and Accuray Inc’s CyberKnife System, used for treating tumors. The company has sold three CyberKnife systems in China so far this year.

Cowealth CEO Lee Duane (李惇) said he was optimistic about this quarter if the H7N9 avian influenza stays under control in China.

“If H7N9 spreads like SARS in 2003, no one would go to the hospital for fear they might get infected,” Lee said during an online investors’ conference yesterday.

The company forecast that sales of diagnostics facilities and reagents would maintain the 35 percent growth seen last quarter amid rising demand, he said.

Cowealth estimated that its gross profit margin this year would be close to the 35.89 percent posted last year because the company’s product mix has not changed a lot. The firm’s profit margin in the first quarter was 13.01 percent, up from 9.45 percent a year ago, it said.

Cowealth shares declined 0.57 percent to NT$86.5 yesterday, underperforming the TAIEX, which was down 0.23 percent.