Singapore Paincare Holdings Limited (SGX: FRQ): HY2026 Interim Results Analysis

Singapore Paincare Holdings Limited (“SPCH”) has released its unaudited interim consolidated financial statements for the six months ended 31 December 2025 (“HY2026”). This analysis reviews the key financial metrics, operational trends, and notable corporate developments as disclosed in the company’s report.

Key Financial Metrics and Performance Table

1. Inferred: The report provides prior period data for HY2025 only, but as financial year ends in June, HY2025 is the preceding half-year for comparison.

Performance Overview

• Revenue: Declined marginally by 1.2% YoY to S\$13.58 million, mainly due to lower contributions from specialist clinics and the winding down of Ready Fit Physiotherapy, partially offset by growth in general practitioner (GP) clinics.
• Other Income: Fell sharply by 56.8% YoY, attributable to lower government grants and incentives, especially under the Healthier SG programme.
• Employee Benefits: Rose by 14.2% YoY due to increased remuneration and new hires.
• Net Profit: The Group swung to a net loss of S\$0.05 million (from a profit of S\$0.78 million in HY2025), with a loss attributable to shareholders of S\$0.41 million (vs. profit of S\$0.45 million in HY2025).
• EPS: Fell into the red at (0.24) cents, compared to a positive 0.26 cents in HY2025.
• Net Asset Value per Share: Decreased from S\$0.13 to S\$0.11.
• Dividend: No interim dividend was declared, as the Group was loss-making in this period.

Operational and Segment Commentary

• Business Mix: The company operates primarily in healthcare, with a network comprising 10 GP clinics, 5 specialist centres, and one facility focused on traditional Chinese medicine and pain management.
• Business Trends: The report notes ongoing industry headwinds, particularly the tightening of insurers’ claims processes, which have negatively affected specialist clinic revenues. The Group is also pursuing digital transformation initiatives.
• Cash Flow: Net operating cash flow was healthy at S\$1.84 million, but this was offset by outflows from loan repayments, lease obligations, and dividend payouts to non-controlling interests, resulting in a net decrease in cash and cash equivalents of S\$1.16 million.
• Balance Sheet: The company remains in a net cash position, but net assets and liquidity have declined modestly.

Notable Corporate Actions & Events

• Subsidiary Liquidation: Dermatology & Laser Specialist Clinic Pte Ltd (51% owned) entered creditors’ voluntary winding up in February 2026.
• Acquisition: Acquisition of 51% of TS Medical Private Limited announced in February 2026, to be partly funded by IPO/Placement proceeds and internal resources.
• Treasury Shares: 8.6 million treasury shares (5.04% of issued shares) remain unchanged; no buybacks or cancellations were conducted in the period.
• Related Party Transactions: Notably, the Group paid S\$317,000 in rental expenses to MedBridge Marketing Pte. Ltd., a company owned by the Executive Director and CEO. No new mandates or substantial related party transactions were reported.

Chairman’s Statement

“The Group’s revenue decreased by 1.2% from approximately S\$13.73 million in HY2025 to S\$13.58 million in HY2026 mainly due to the decrease in revenue from specialist clinics and the winding down of Ready Fit Physiotherapy Private Limited (“Readyfit”) in HY2026. The decrease in revenue from specialist clinics and Readyfit was primarily offset by the increase in revenue from general practitioners (“GP”) clinics.

Other income decreased to approximately S\$0.26 million in HY2026, compared to S\$0.59 million in HY2025 mainly due to decrease in chronic disease grants and incentives under the Healthier SG scheme which was received in HY2026.

Employee benefits expenses increased approximately S\$0.92 million from S\$6.53 million in HY2025 to S\$7.45 million in HY2026 mainly due to (i) increase in remuneration given to the practitioners and staff, and (ii) new hires in the Company.

Depreciation and amortisation expenses decreased by approximately S\$0.1 million from S\$1.32 million in HY2025 to S\$1.22 million in HY2026 mainly from lesser depreciation on plant and equipment (“PPE”).

As a result of the above, the Group reported an approximate net loss after income tax of S\$0.05 million in HY2026 as compared to a net profit after income tax of S\$0.78 million in HY2025. The net loss attributable to owners of the Company was approximately S\$0.41 million in HY2026 as compared to a net profit of S\$0.45 million in HY2025. Net profit attributable to non-controlling interests increased to approximately S\$0.36 million in HY2026 as compared to S\$0.33 million in HY2025.

The tone is neutral to slightly negative, reflecting a challenging operating environment and a swing to a modest loss, but also highlighting ongoing digital initiatives and network growth.

Risks, Exceptional Items, and Outlook

• Industry Headwinds: Tighter insurer claims are specifically noted as a continued challenge for specialist clinics.
• Cost Structure: Elevated employee costs and persistent operating expenses despite flat/declining revenue pressure margins.
• No Dividend: No dividend was declared for HY2026 due to the loss-making position.
• Asset Actions: No asset revaluation, but winding up of a loss-making subsidiary and the acquisition of a new medical practice will reshape the business.
• Outlook: The Group is cautious given increased competition and ongoing insurance claim issues but continues to invest in its digital transformation and GP network expansion.

Conclusion and Investment Recommendation

Summary: SPCH’s HY2026 results show a marginal YoY revenue decline, a significant drop in other income, higher staff costs, and a swing to a small net loss for equity holders. The company’s balance sheet remains stable, but cash and net asset value per share have both declined. The loss-making position and lack of dividend make this a neutral-to-weak period for the Group, with persistent industry headwinds and ongoing restructuring (subsidiary liquidation and new acquisition).

Investor Actions:

• If you currently hold this stock:
  • Consider holding if you believe in the Group’s long-term ability to adapt to industry changes and execute its digital and GP network strategies. However, be prepared for continued volatility and lack of dividend in the near term. Watch for evidence of successful integration of the new acquisition and any turnaround in profit margins.
  • If you are risk-averse or seek stable dividends, you may consider reducing your exposure, as further losses or dilution are possible if the industry environment remains challenging.
• If you do not currently hold this stock:
  • Wait before entering. The Group faces operational headwinds, no clear profit growth trajectory, and has suspended dividends. Only consider investing if you see sustained improvement in revenue, margin, and profitability in future results, or if there is clear market evidence of a successful strategic shift or turnaround.

Disclaimer: This analysis is based solely on the company’s published interim financial report and does not constitute financial advice. Investors should perform their own research and consider their risk profile before making investment decisions.

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