CHC Healthcare Group announced its first-half financial results on the 6th, posting a net profit after tax of NT$49.098 million, up 61.4% year-on-year, with earnings per share (EPS) of NT$0.28. Second-quarter net profit after tax reached NT$40.696 million, a 3.84-fold surge compared to NT$8.402 million in the first quarter.
Looking ahead, CHC Healthcare noted that its core business—medical equipment sales—largely depends on contracts with hospitals, most of which begin contributing revenue in the second half of the year. As a result, operations are expected to grow quarter by quarter, with revenue and profit in Q3 projected to surpass Q2, and Q4 marking the peak of annual revenue recognition.
An important factor to watch is foreign exchange gains. Since the advanced medical equipment CHC Healthcare distributes is priced in U.S. dollars, the appreciation of the New Taiwan dollar from NT$31–32 per USD to NT$29 will begin to generate foreign exchange benefits from Q3 onward, significantly boosting the company’s gross margin compared with Q2.
CHC Healthcare’s three main business segments—medical equipment, Fukang Pharmacy, and SHIN-HO BIOTECH’s irradiation plant—are all showing strong momentum. The company highlighted that a wave of hospital equipment replacements has spurred expanded procurement of new medical devices, which will be booked starting in Q3. Accordingly, revenue and profit contributions from medical equipment are expected to rise notably this year.
Subsidiary Fukang Pharmacy remains undeterred by competition in the chain pharmacy sector and plans aggressive expansion, growing its network from 60 to 80 stores this year, with an IPO application targeted for next year. Store expansion in 2024 will exceed 30%, with the chain expected to surpass 100 locations in 2025.
Meanwhile, SHIN-HO BIOTECH’s irradiation plant, officially launched in June last year, obtained ISO certification in Q1. Most of its current clients are medical device companies. CHC Healthcare reported that several potential orders from the high-tech and semiconductor industries are under testing, with commercial operations expected by the end of this year and profitability anticipated in 2025.
Analysts noted that CHC Healthcare is Taiwan’s first medical equipment distributor and the largest oncology equipment agent, offering sales, leasing, and maintenance services for radiotherapy, neuroscience, and ophthalmology instruments. In Q2, equipment sales accounted for 34% of revenue, healthcare management services 33%, and new business units (pharmacy + irradiation) the remaining 33%.
As the imported equipment represented by CHC Healthcare only began contributing in Q2—after installations from Q4 last year through Q1 this year—the impact of NT dollar appreciation is just starting to be felt. A more significant uplift is expected to appear in Q3.
Resource: 承業醫上半年獲利4,909萬元、季增近4倍 下半年逐季成長
