Medtecs International

[BlueKelah]

Hi BlueKelah,

I have to disagree with you if you are just looking at its share price performance. Yes, Medtecs's net profit margin had been low before Covid, but it had been a consistently profitable company.

We have to understand that Covid is a unique situation. Companies that benefited from it are now looking at the after effects of those ramp-ups. This is not only unique to healthcare products and PPE producers like Medtecs. Other companies which provides Covid testing services are also looking at lower revenue.

What is the steady state then? We still don't know. Have to wait for those excesses to be weeded out from the system before we can see the after effects. In the meantime, do not be too fast to write off companies like Medtecs.

I remember looking at this company many many eons ago and already written it off already.  If you know the insider story about the boss you would write it off as well   Something about crosslisting in taiwan which was bad for local shareholders, heard it from my broker when i discussed this stock with them. I think it happened long time back, maybe even before GFC.

Historically they have had very bad EPS, i think was loss making in 2014 and before, then very very borderline break even earnings for many years. 

Even in 2019 , out of revenue on 94m+ they only made a net profit of 1.4+m translating to EPS of 0.29c lol...

Precovid their revenue was 90m+, 2020 was 550m+ and in 2021 has come back down to 193m and 1H2022 I just saw was only ~43.5SGD which if you project same revenue next 2H2022, should be back to baseline of precovid 90m+ They are also back to making losses. 

Back then 2019 share price was 3-4c which i think it should fall back to that range again and would make a good short at current prices.

They were just lucky to be in the right sector during covid 2020, but now without capable management its gonna be a gone case.