Delivers service business hoping to reduce income volatility

Frequently asked questions that the business of trading (trading) in the business of distributing and installing medical kits for treating cancer patients with radiation therapy (Radiotherapy) of Business Alliance Public Company Limited or BIZ has a gradual performance. “Volatility” each year

The “revenue-net profit” grew unevenly, depending on the sales of medical device products sold by the company.

“Sompong Chuenkitiyanon”, Chief Executive Officer of Business Alliance Public Company Limited or BIZ,   admits that the company’s business is not a business that generates spectacular growth. But it’s a business that keeps growing. This is because it is a business that can expand from the number of patients suffering from cancer every year. Including the patient’s knowledge of treatment methods and have more treatment options from the past.  

However, in the medical device sales business, the revenue will fluctuate depending on the sales of the device each year. It is considered a risk to the company as well. “Hospital Business” which is a Cancer Alliance Sriracha specialized hospital in Chonburi province. that the company holds 65% stake in the amount of 30 beds in radiation therapy, chemotherapy (chemo)

and the latest in July The subsidiary has opened a new department. “Medical marijuana” in cancer specialty hospitals Cancer Alliance by bringing cannabis oil purchased from “Pharmaceutical Organization” (GPO)  to help enhance the reduction of side effects in the process of cancer treatment. along with standard treatment both surgery Chemotherapy and radiation, the hospital is licensed by the Ministry of Health for opening the medical cannabis department and purchasing cannabis. which must continuously report the use of medical marijuana to the Ministry of Health.

Therefore, in the long-term business plan for 3-5 years (2021-2025), the revenue structure has changed. It is expected that after-sales service business and hospital will account for 30-40% of revenue, which is expected in the future. “Recurring income” As for the income from the business of selling medical equipment 50-60%

“Within 1-2 years, the revenue structure may not change much. This was because the sales of the device was still a high volume of 100 million baht, while the hospital business and after-sales service came in at the level of 50-60 million baht, which is still a small part. But in the long-term future, we believe that the hospital business will generate more revenues.”

The company is in the process of studying “new business” and expects to see clarity in 2022, which is a medical business (health care) because it is a business that the company has expertise. It is expected that the investment will be both large and not very high. The company is trying to find new business to reduce the “volatility” of the old business. but is related to the Company’s core business.

For the second half of the year 2021 operating results, it is expected to grow more than the first half, with a net profit of 193.25 million baht for the six-month period, an increase from the same period last year with a net profit of 15.3 million baht. from the same period last year, and it is expected that “Income – Net Profit” in 2021 will hit a record high (New High) since the establishment of the business.

because the company currently has a workload “In hand, waiting to recognize revenue” ( Backlog) of more than 1.9 billion baht, most of which are awaiting delivery of radiotherapy machines for cancer treatment to government hospitals that are contractual this year. Including the project to establish a proton cancer treatment center that will be able to deliver within this year as well. Despite the situation of the COVID-19 epidemic continues to spread But this does not hinder the progress of delivering work to customers.

“The overall performance of the first half of the year has grown as the target set. and can deliver the work as scheduled While revenue is recognized from specialized cancer hospitals Cancer Alliance according to shareholding which received better response than expected and has a continuous good trend make sure This year’s performance will grow strongly and set a record high for sure.”

In addition, the company continues to bid for new jobs. Most of them are government jobs. The value is at the level of 1,000 million baht, with the confidence that the opportunity to get more than half of the work from the auction. because there are not many competitors Including this year, there will be more aggressive marketing. After participating in the government program, 30 baht gold card holders can be treated anywhere across the country. Starting from January 1, 64, it is expected that the number of patients who use the service will more than double.

source : https://www.bangkokbiznews.com/news/detail/955449

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