Financial Analysis of Singapore Institute of Advanced Medicine Holdings Ltd. – Net Profit Decline

Business Description

Singapore Institute of Advanced Medicine Holdings Ltd. operates primarily in the medical field, offering radiation therapy services, imaging services, and general practitioner services. The company’s core business revolves around proton beam therapy and photon radiation therapy services. Their operations are primarily focused in Singapore.

Industry Position and Market Share

Within the medical services industry, the company faces competition from other providers of radiation therapy and diagnostic imaging services. However, the report does not provide specific details about competitors or market share.

Revenue Streams and Customer Base

The company derives revenue from radiation therapy (proton and photon), diagnostic imaging, and general medical services. The report does not elaborate on customer demographics or specific supply chain details.

Financial Statement Analysis

Income Statement

For the financial year ended 30 June 2024, the Group reported a loss after tax of \$37,438,812. This represents a significant decline in net profit, with a substantial lifetime expected credit loss of \$59,715,953 charged against the profit.

Balance Sheet

As at 30 June 2024, the Group’s current liabilities exceeded its current assets by \$7,886,034, indicating liquidity concerns. The company relies heavily on a subsidiary for cash flows, which itself is in a net liability position.

Cash Flow Statement

The net cash used in operating activities was \$12,929,823, highlighting cash flow challenges for the company.

Key Findings

The financial report indicates serious financial challenges for the company, including liquidity issues and significant credit risk associated with a subsidiary. The company has taken steps to secure financial support and loans, which may help in managing short-term obligations.

Date of Report and Financial Year

The report is dated 9 December 2024 and covers the financial year ended 30 June 2024.

Special Activities or Actions

The company is working to ramp up its radiation therapy business and has secured additional financial support to improve its financial standing.

Investment Recommendations

For Current Shareholders

Given the financial uncertainties and challenges, current shareholders should closely monitor the company’s progress in securing further financial support and improving profitability. Consider holding the stock if confident in management’s ability to turn the business around.

For Potential Investors

Potential investors should exercise caution. The current financial situation poses significant risks, and it may be prudent to wait until clearer signs of financial stability and improvement are evident before investing.

Disclaimer

The recommendations provided are based on the financial report and should not be considered as financial advice. Investors should conduct their own research or consult a financial advisor before making investment decisions.

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