Singapore O & G Case Study

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The table above shows the increase in revenue of O&G's performance by S$1.1 million or 16.6% from S$6.6 million for the financial period ended 30 June 2014 ("1H 2014") to S$7.7 million for the financial period ended 30 June 2015 ("1H 2015") due to the contribution of S$0.6 million in 1H 2015 by O&G's cancer specialists division for women and Radhika Breast & general Surgicare and the increase in patient loads.
Singapore O&G is in the niche healthcare segment for women. While Singapore can be a mature market, it will provide a strong base in which allows O&G to expand into the less penetrated regions. Furthermore, O&G has stable cash flow and medical practices which is a cash generative business. It is a debt free business. There is still rooms
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Singapore O&G may face changes in regulations as well as trying to fulfil the licensing requirements for its operations, its ability to obtain the necessary approvals, licenses or permits. O&G may also face the risk of losing their talented specialists as nothing is going to stop the specialists from cashing out and restarting their businesses again sometime down the road if the company is unable to retain their talented specialists.
O&G have a very high dividend pay-out which the company could save more cash for expansion. A lower pay-out of 50% will be sufficiently attractive and sustainable. It will also have a nice balance between keeping enough cash to grow the business and rewarding
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SOG has been having a net profit margin above 35% each year since its incorporation, which is higher than other giant healthcare providers such as Raffles Medical and Healthway Medical in the industry. The high net profit margin puts SOG at advantage as they will be able to use the net profits on business expansions and be awarded with share price growth subsequently. SOG has a strong cash hoard. From its financial statement, up to 75% of the total assets are made up of cash and cash equivalents. This helps SOG to build as an opportunity war chest, when the company is backed with strong cash foundation, chances are they will be focusing on improving their service quality and making good decisions. Hence, keeps the business in a virtuous cycle. On the other hand, even though SOG has a zero- debt structure it is not guaranteed that the company would not take debts in future especially when the S$3 million of proceeds might not be enough for the business expansion, SOG’s general financial condition is healthy and has outperformed than the other healthcare providers in the

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