Catalist-listed Econ Healthcare (Asia) EHG has reported earnings of $1.68 million for its 1HFY2024 ended September, a marginal dip from its earnings of $1.69 million in the same period last year.
Revenue for 1HFY2024 grew by 17.0% y-o-y to $24.8 million.
Econ Healthcare’s patmi margin decreased from 8.0% in 1HFY2023 to 6.8% in 1HFY2024, while earnings per share on a fully diluted basis for the same period came to 0.65 cents compared to 0.66 cents in the previous year.
The company’s revenue for 1HFY2024 increased 17.0%, or $3.6 million, from $21.2 million in 1HFY2023 to S$24.8 million mainly due to an increase in Medicare centres and nursing home fees.
Singapore — the company’s largest revenue generating geographical segment — contributed to an increased revenue of $3.2 million due to a contribution of $2.4 million from the ramped up operations of ECON Care Residences (Henderson), and $0.8 million through improvement in the company’s homecare business and fees increment.
Meanwhile, the company’s Malaysia business also saw an increase in revenue as a result of a net increase in bed occupancy both for ECON Medicare Centre and Nursing Home - Puchong and ECON Medicare Centre and Nursing Home - Taman Perling.
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In China, the commencement of operations at ECON Medicare Centre and Nursing Home - Changshou after its opening in May also contributed to the increased revenue.
As at Sept 30, Econ Healthcare’s cash and cash equivalents stood at $22.7 million.
The company has proposed an interim dividend of 0.23 cents per ordinary share, payable on Dec 14.
Looking ahead, the company expects global demand for elder care services to rise as the aging population grows and healthcare needs evolve.
“Meeting this demand presents both challenges and opportunities for governments, healthcare providers, and the private sector to deliver high quality and sustainable aged care services,” says Econ Healthcare group executive chairman and CEO Ong Chu Poh.
The company has proposed a final dividend of 0.44 cent per ordinary share.
Shares in Econ Healthcare closed 1.2 cents or 6.22% up at 20.5 cents on Nov 9.
