Hot stock: Medtecs jumps 16% after strong H1 results

SHARES of healthcare play Medtecs International Corporation surged more than 16 per cent on Wednesday morning, after the Catalist-listed firm posted a net profit of US$38.9 million for the six months ended June 30, 2020 - 101 times the US$385,000 net profit a year ago.

As at 10.10am, the counter had jumped 16.9 per cent or 16.5 Singapore cents to S$1.14, surpassing its 52-week high of S$1.05. Some 67 million shares changed hands, making it the most heavily traded stock on the Singapore bourse in early trade.

Shareinvestor data showed that there were no married trades, though a number of large trades exceeding S$150,000 were transacted.

In its results announcement on Tuesday night, Medtecs said its half-year earnings were propped up by higher sales, higher gross profit margins, as well as forex gains.

Earnings per share came in at 7.078 US cents for the first half this year, up from 0.07 US cent in the preceding year.

Revenue for H1 2020 grew to US$162.6 million, nearly five times the US$33.2 million a year earlier.

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This came on the back of an increase in demand for personal protective apparel due to the Covid-19 pandemic, which also raised awareness on healthcare products and led to a rise in sales from existing customers, Medtecs said.