BenQ Medical Technology, after acquiring ERa Bioteq Enterprise, saw modest revenue growth in the third quarter. However, expenses related to expanding retail locations and setting up a new plant in Shanghai led to a decrease in EPS to NT$0.6, with cumulative EPS reaching NT$1.76 for the first three quarters, roughly on par with last year. During a recent investor briefing, BenQ Medical stated it would continue to pursue acquisitions in the equipment and supplies sectors, especially focusing on expanding its equipment offerings. While revenue growth is expected for this year, the company anticipates primary growth drivers for 2024 to come from medical supplies and healthcare services, with increased efforts in the Thai and Indonesian markets and entry into medical diagnostics. Growth in medical equipment is also forecasted to resume.
BenQ Medical reported a 3% quarterly and 5% year-on-year revenue increase in Q3. All product lines saw slight growth, with major contributions from the September acquisition of ERa Bioteq, increased supply shipments, and the expansion of its retail locations. Operating profit stood at NT$85 million, a 16% decline year-on-year, primarily due to increased operating expenses, including personnel and marketing costs associated with retail expansion and new facility investments in Shanghai. Net income after taxes was NT$26.63 million, down 28% year-on-year, with EPS at NT$0.6.
For the first nine months, BenQ Medical’s revenue reached NT$3.448 billion, a 3% year-on-year increase, with an EPS of NT$1.76. This was largely driven by new shipments from its medical supplies division, which exceeded expectations due to orders from its new subsidiary and Thai branch, along with growth in the healthcare services segment spurred by retail expansion. The gross margin improved by 1 percentage point, but net operating profit and margin (7%) declined due to increased expenses, particularly from nearly 20 new retail locations and new plant setup costs.
During this period, medical equipment comprised 14% of revenue, showing a slight decline from the previous year due to weaker performance in China. Medical supplies maintained a stable performance, contributing 58%, while healthcare services rose steadily to 28%, fueled by increased revenue and new product additions.
BenQ Medical currently operates 74 retail locations across Taiwan, including 35 in the north, 22 in central Taiwan, 15 in the south, and 2 in the east. As of Q3, it opened 19 new retail/sales locations this year, including 10 new health and lifestyle stores, bringing the total to 11 nationwide. Pharmacy locations grew by 2, mainly in central Taiwan, and the Hong Yun chain expanded from 48 to 54 stores, adding 6 new locations.
Looking ahead, BenQ Medical plans to enter the Indian market for medical equipment. Last year, assembly operations for surgical lights expanded to India, and in Q2 this year, surgical lights production capacity increased. The company is also pursuing strategic partnerships in India, with plans to promote its 3D navigation robots. Thailand’s medical supplies revenue grew by 30% in the first three quarters of this year, while Indonesia saw modest growth of 10%. However, significant growth is anticipated in both markets over the next few years, with increased investments planned. The healthcare services segment will also expand into medical diagnostics.
BenQ Medical expects revenue growth to remain solid this year and anticipates balanced growth across its three core divisions next year. Medical supplies and healthcare services are expected to see stronger growth, driven by a new production facility in supplies, which has both high growth potential and a significant revenue share. The healthcare services division is launching new product lines in clinics and medical testing, forecasting substantial growth in 2024. Additionally, the company is actively seeking suitable acquisition and investment opportunities to expand operations, particularly in equipment and supplies, with a strong interest in enhancing its equipment portfolio.
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