“The continued performance decline in 2HFY2021 has brought about concerns on the longer-term sustainability of Medtecs’ earnings. Despite elevated demand for personal protective equipment (PPE) deliveries in England, revenue for Medtecs did not appear to increase. This could hint at a potential loss of market share, possibly to domestic PPE producers,” write the analysts in their March 23 report.
DBS Group Research analysts Woon Bing Yong and Ling Lee Keng have maintained their “hold” call on Medtecs International as the company saw an 87% y-o-y decline in earnings of US$17.3 million ($23.5 million) for the FY2021 ended December.
The lower earnings were attributable to the lowered demand amid the improving Covid-19 situation.
