In its 2018 annual report, it mentioned tapping into business opportunities in the medical devices industry in South-East Asia, either through a partnership with local companies or other business models.
By having a strategic alliance with existing local players, BCM would be able to expand in the target country by leveraging on the partners’ network and business connections, the company said.
It was identifying potential partners and a suitable business model.
Given that capitalising on new business opportunities would broaden its customer base, BCM aimed to expand its product range, verticals and geography for the financial year ending Dec 31.
In FY18, the group expanded its product offerings to include the distribution of healthcare and clinical devices through its new subsidiary, Cypress Medic Sdn Bhd.
For its medical devices arm, the group expected to benefit significantly from the stronger growth of Malaysia’s medical devices industry.
The country is set to become a global medical device manufacturing hub, which is one of the high-potential growth sectors under the 11th Malaysia plan.
Under Budget 2019, the Health Ministry received an allocation of RM29bil, which was a 7.8% increase year-on-year (y-o-y), enabling it to spend more on medical equipment.
Last year, the medical device exports grew 16.1% y-o-y to RM22.97bil, exceeding the RM20bil mark for the first time.
The country’s medical instruments, apparatus and appliances exports surged 21.5% y-o-y in 2018 to RM4.92bil. The domestic medical devices industry consists of over 200 manufacturers with investments of up to RM14.2bil.
BCM believed it is well-positioned in the health industry to post higher sales, mainly driven by its internal growth strategies, including the expansion plans for FY19.
“Many of BCM’s clients such as KPJ Hospitals and Columbia Asia Hospitals are actively expanding their facilities or have commenced the refurbishment of their hospitals. This will entail the purchase of additional medical equipment which will benefit BCM.
“The distributorship rights that we secured from Siemens Healthineers in February 2018 will also be a key business catalyst, as it allows us to offer the well-received Siemens’ range of cardiac angiography system and fluoroscopy system in the Malaysian market,” it noted.
As for its commercial laundry equipment division, the group is looking to expand to more than 1,400 outlets from 1,200.
“Our management and marketing teams are working to expand our customer base,” it said.
The group also planned to set up five Speed Queen self-service launderette outlets in addition to the six existing outlets.
“We are currently assessing the suitable locations for the launderettes,” it said.
In the near to medium term, the group would focus on enhancing its revenue growth, improving profitability as well as strengthening its business and operational support functions to accelerate its business momentum.
BCM is optimistic of delivering a healthy performance on the back of introducing more products and brands for the medical and the commercial laundry equipment business.
“Our efforts to widen the range of our product offerings in the commercial laundry equipment and medical devices industries provide us a very significant advantage over our competitors.
“Heading into FY19, BCM will continue to undertake good corporate governance and social responsibility, as it strives towards stronger business growth and better financial results.
“BCM remains focused and driven to achieve its long-term aim of becoming a leading player in SouthEast Asia’s medical devices and commercial laundry equipment scene,” it added.
The group’s net profit surged sharply by 83.5% to RM8.22mil in FY18 from RM4.48mil in FY17 on the back of positive growth across its commercial laundry equipment, medical devices and healthcare product businesses.
Source: The Star