Medical consumables supplier Medtecs International Corporation is warning that its 3QFY2021 earnings is “not expected to be as strong” as the first half of the year. It expects to remain profitable though.
“This is mainly due to existing customers completing their stockpiling exercises in 2020, subsequent inventory adjustment attributable to certain customers, and the stabilization of the supply and prices of the PPE market globally,” says the company.
“Notwithstanding the above, such market changes are not expected to have a material adverse impact on the overall financial position of the group, which remains healthy,” the company adds.
Taiwan-based Medtecs was one of the hottest stocks last year, as the pandemic triggered a spike in the demand for the company’s products.
Medtecs adds that its cash position and low debt-to-equity ratio can well support its on-going expansion plans and projects.
It continues to engage with group purchasing organisations, institutional clients and government agencies to initiate provision of its PPE and PPE stockpiling services.
The company is also reiterating its focus on promoting its own-branded products.
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It also has several ongoing stockpiling projects for PPEs and military uniforms in the Philippines, where it has a manufacturing presence, which are expected to provide additional streams of revenue that will positively impact its earnings for the financial year ending Dec 31 2021.
Medtecs closed on Nov 17 at 33 cents, down 2.99% for the day and down 68.14% year to date.
It reached a recent peak of $1.85 last August. Prior to the pandemic, it traded at below 10 cents.
Photo: Medtecs International
