HC Surgical Specialists Limited: Interim Financial Analysis – HYFY2026

HC Surgical Specialists Limited (HCSS), a Singapore-listed medical services group operating 18 clinics across the island, has released its condensed interim financial statements for the six months ended 30 November 2025 (HYFY2026). This review provides a structured summary of the company’s key financial metrics, performance trends, dividend declarations, and strategic outlook, designed for investors and financial professionals.

Key Financial Metrics and Performance Table

* Interim periods only; full-year comparatives not provided.

Historical Performance Trends

• Revenue remained stable year-over-year, with a slight decrease of 1.6% compared to HYFY2025, indicating resilience in core business operations.
• Profit after tax increased 11.7% YoY, mainly due to higher fair value gains on financial assets and lower finance costs, offsetting modest revenue declines and higher employee expenses.
• EPS rose by 17.7%, reflecting improved profitability and efficient capital management.
• Net asset value per share improved by 10.3% since the previous audited period, suggesting strengthening balance sheet fundamentals.

Dividend Declaration and Comparison

• An interim ordinary dividend of 0.90 cents per share (tax exempt) has been declared, payable on 13 March 2026, representing a 12.5% increase over the previous period’s 0.80 cents.
• Final dividend for the year ended 31 May 2025 was 1.18 cents per share, also higher than the prior year’s 0.70 cents, signaling management’s confidence in future cash flows and earnings stability.

Exceptional Items and Asset Developments

• Fair value gain on financial assets at FVTPL jumped to S\$0.91m (from S\$0.13m YoY), driven by share price increases in Medinex Limited and Singapore Paincare Holdings Limited, partially offset by Aoxin Q & M Dental Group Limited.
• No impairment losses were recognized on plant, equipment, ROU assets, goodwill, or investments in associates and subsidiaries during the period.
• Finance costs dropped significantly due to settlement of deferred consideration liabilities in the prior year.
• No major asset revaluations or delays were noted.

Corporate Actions and Other Notable Events

• No share buybacks, new placements, or dilution occurred during the period; treasury shareholdings remain at 1.91% of issued shares.
• No related-party transactions above S\$100,000; no unusual fund flows reported.
• Dividend payments and lease repayments were the primary uses of cash, resulting in a healthy net increase in cash and cash equivalents.
• Recent acquisitions (GMH, MDS, HCMC) in prior periods have been fully integrated, with all impairment assessments indicating no further write-downs required.

Industry Developments and Outlook

• Policy changes to Singapore’s Integrated Shield Plan (IP) riders, effective April 2026, will raise co-payment caps and restrict deductible coverage, potentially reducing insurance premiums by 30%. Management expects no immediate material impact on HCSS’s financial position.
• No mention of major macroeconomic risks, legal disputes, or natural disasters affecting operations.

Chairman’s Statement

The Board of Directors of the Company confirms that, to the best of their knowledge, nothing has come to their attention which may render the unaudited interim financial statements for HYFY2026 to be false or misleading in any material aspect.

On behalf of the Board of Directors,
Dr. Heah Sieu Min, Executive Director and Chief Executive Officer
Dr. Chia Kok Hoong, Executive Director and Medical Director
13 January 2026

Tone: Neutral to Positive. The statement is factual, with assurance of accuracy and no mention of concerns or negative outlook.

Conclusion and Investment Recommendations

Overall, HC Surgical Specialists Limited has delivered a stable set of interim results, with profit, EPS, and dividend metrics trending positively despite flat revenue growth. The company appears to be well-managed, with prudent cost controls, solid balance sheet, and ongoing commitment to shareholder returns. No material risks or uncertainties have been highlighted, and outlook remains neutral to modestly positive based on current policy and market conditions.

• If you currently hold HCSS stock: Consider maintaining your position. The company is delivering consistent returns, raising dividends, and showing resilience in its core business. There is no indication of major risks or negative structural changes.
• If you do not own HCSS stock: Investors seeking stability, defensive sector exposure, and growing dividends may consider initiating a position. However, as revenue growth is flat and much of profit increase is due to non-operational gains, further upside may be limited unless core business accelerates.

Disclaimer: This analysis is based strictly on the company’s official interim financial statements and does not constitute financial advice. Individual investors should conduct further due diligence and consider their own investment objectives and risk tolerance before making any investment decisions.

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