$TMCLIFE / 0101 (TMC LIFE SCIENCES BERHAD) continued trajectory of improving numbers

They just announced their Q1 results, and for people following the company I think it's not surprising at all. Short and simple, let's just go through it.

1. Cash flow is great, with NOCF at RM 22mil this quarter. Acquisition of PPE is around RM 4mil. As mentioned before, TMCLIFE is likely to be done with their near term major capex cycle (expanding of THKD), and we are probably going to see 1-2 years of good FCF before the next major spend for Thomson Iskandar.

2. TMCLIFE experienced both increasing revenue, profit, and profit margin compared to a year ago. This is alluded to the increase in the capacity of THKD as well as recovery of their fertility business. Personally, a sign that a business is doing well, to me, is that both the revenue and margin can increase at the same time. So that's good.

3. Hospital contributed RM 81.8mil while Fertility was RM 10.1mil, both improved QoQ and YoY. There should still be quite some runway for their fertility business to improve. Meanwhile, I also expect THKD to continue to be resilient and ongoing opening of new capacities progressively until 2025, with another ~40+% new beds in the pipeline over the next 1-2 years.

4. They expect the continued expansion in capacity at THKD, recovering fertility business, and the improvement of medical tourism to benefit them.


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Personal thoughts: The growth path continues, and so far, so good it seems. Market seems to have reacted a little bit.