SMD, from a 99% trading company to having more recurring income.

PaulRen's picture
Submitted by PaulRen on Fri, 26/08/2022 - 2:53pm
Category: 
Company Visit

SMD (10.70)  SaintMed, is an interesting stock to us because it only trades at a trailing p/e ratio of just 5.2!    They key question is can SMD keep growings, or was it just a Covit-bubble beneficiary, as the Mr. market now seems to price it at present.   I posed this very question to them directly and got the following answer, shown below to members.   They seem very confident on 2.1 Bill in revenues for this year (1.4 for first 6 months)  and they still do have a promising future, beyond Covit. Albeit less aggressive growth, as they say.    I can so see/estimate SMD earning 1.70 per share for 2022, or a current calender year p/e of just  6.3, well less then 1/3 the SET average p/e of just now 18.10.   SMD earned 0.99 Baht, per share in first-half 2022.  Hence I maintain of the long term investment merit opinion, on SMD. 

Dear Mr. Renaud, 

Thank you for your feedback and always having interest in SMD.

As we had all-time high revenues and net income last and early this year, resulting from COVID-19 beneficiaries, the management targeted revenues at 2,100 MB for YE2022 and strongly confident that we can achieve the target. So, it is quite challenging for us to have continued growth from such exceptional years. Our management is also satisfied with the performance and does not expect aggressive growth. On the other hand, we would like to maintain revenues and net profit and focus on changing the business model from a 99% trading company to having more recurring income, which we believe will be the key drivers for sustainability growth. SMD has continued to expand existing business as well as new businesses as follows:  

  1. Expanding trading business by adding new product for Long COVID-19 eg. Lung Function Test, Enhanced External Counter Pulsation, Portable Medical Oxygen Concentrator, and Hyperbaric Chamber. 
  2. Leasing for any medical devices of any brands to generate recurring income with competitive advantage from contract structure. 
  3. Health Tech: The medical software with hardware connected to the Hospital Information System (HIS) and any medical devices. In addition, SMD is an authorized exclusive distributor of Ezify Technology for EzHMIS system for 3 years. 
  4. SAINTmed 24/7 Selfcare Vending Machine consists of selfcare products, such as Blood Pressure Monitor, Enhanced External Counter Pulsation, Thermometer, Vitamin, Food Supplement, and ATK. In the first phase, 60 units of the vending machine will be installed at public hospital during Q4/22. Moreover, SMD is an authorized exclusive distributor of vending machine for 3 years. 
  5. Expanding 4-5 new Sleep Lab centers by Public Private Partnership in 2023. 

Best Regards,
SMD Investor Relations Department