Cowealth Medical Holding sees margin rising

By Camaron Kao  /  Staff reporter

Fri, May 24, 2013 - Page 14

Cowealth Medical Holding Co (合富醫療) expects net profits to grow 1.4 times this year from last year’s NT$185 million (US$6.18 million), aided by a rising net profit margin.

“As our company has reached the economies of scale, the net profit can grow faster,” spokesperson Yvonne Tsai (蔡意文) said at an investors’ conference yesterday.

“We expect the 144 percent year-on-year growth in net profit reached in the first quarter will last through the whole year,” she said.

The medical equipment supplier’s net profit margin rose to 13 percent last quarter from 9 percent in the first quarter of last year, the company said.

It expects strong demand from China will boost growth momentum for its two major businesses — providing long-term service packages for its diagnostic facilities and reagents, and selling Accuray Inc’s CyberKnife System, a radiosurgery system used for treating tumors, as well as the system’s repair service.

The company set a target of six new clients this year for its diagnostic facilities and reagents packages, which would broaden its customer base to 36. It secured three new customers last quarter alone.

The packages Cowealth offers accounted for 70 percent of its revenue last year, while CyberKnife accounted for 30 percent of its total revenue, the company said.

Cowealth posted revenue of NT$660.41 million for last quarter, up 26 percent from NT$524.91 percent a year ago and up 44.39 percent from NT$457.39 million a quarter ago, the filing said.

Cowealth registered a profit of NT$68.73 million last quarter, up 144 percent from NT$28.17 million a year ago and up 86.77 percent from NT$36.8 million a quarter ago, according to the company’s filing to Taiwan Stock Exchange.

Cowealth’s shares dropped 1.16 percent yesterday to NT$85.1, outperforming the weighted index of the GreTai Securities Market, which was down 1.92 percent.