KUALA LUMPUR: UMediC Group Bhd (UMC) will see a surge in its public orders in the first half of 2024 (1HFY24) as the Ministry of Health (MoH) uses the budget allocated for the year to procure medical equipment.
Hong Leong Investment Bank Bhd (HLIB) said there has been an uptick in the opening of tender for medical equipment for the public sector.
However, there appears to be a delay in the issuance of purchase orders.
“Despite this delay, we remain optimistic that UMC will see a surge in public orders in 1HFY24.
“Separately, UMC also implemented a pricing revision for its HydroX prefilled humidifier recently and we expect the impact of this to materialise progressively over the coming quarters,” HLIB said in a note.
In the 2024 Budget, MOH was given a 13.5 per cent hike in allocation to RM41.5 billion.
Of this, RM5.5 billion is earmarked for the procurement of essential medical supplies, including medicines, consumables, reagents and vaccines.
“This development serves as a positive catalyst for UMC – an authorised distributor for renowned medical device companies such as Philips, GE and Merit,” said HLIB.
The firm highlighted that the government’s continued commitment to enhancing the quality of public healthcare is anticipated to drive demand for medical equipment within the healthcare system.
“This situation presents a valuable opportunity for UMC to expand its marketing and distribution business in the thriving healthcare sector.
“Technically, UMC is building a base near the long-term support region of 71-73 sen region. A successful breakout above 78 sen will spur the price toward 80-87-90 sen.
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