Seacera Group Berhad (Seacera - 7073) is known for it's diversify business portfolio from tiles manufacturing, construction, property development as well as the latest being in the healthcare industry by purchasing 51% shares in Proligen Sdn Bhd, focusing on the niche product in renal treatment.
With the acquisition of 51% stake in Proligen, what kind of opportunity is pave ahead for Seacera ?
To recap, Proligen Sdn Bhd is EPP 14 status company in Malaysia that is designed to produce disposable dialyser filter in Malaysia. (Proligen - Disposable Dialyser Manufacturing Plant EPP 14).
This is an effort in addressing the rising End Stage Renal Disease (ESRD) which is an escalating pandemic for most of the country in the world which Malaysia is not excluded. According to latest official records, Malaysia are treating more than 35,000 of patients with ESRD as the number of patient had been peaking at a growth rate of 15% annually.
The
increase of aging population, as well as the changing lifestyle of
human being had contributed largely in the increase of ESRD amongst
Malaysian. ESRD requires critical health maintenance which had remained
as a costly endeavor to the patients.Proligen will set to be the first Polysulfone dialysis filter manufacturer in Jasin, Melaka. It will also be the first plant to produce high grade blood filtration filters that will cater to Malaysia and have exclusive distribution rights in ASEAN for it's pattern product and technology from SuisseMed Technologies SA.
While a dialysis patient will require to undergo dialysis every 2 to 3 days, that will sum up to a patient needing approximately 150 filter for a 1 year dialysis.
Based on the current 35,000 patients needing renal treatment, that will easily sum up to a demand of 5 million of filters in Malaysia alone, with a growth of CAGR 15% annually.
While the production will project a local consumption of 20% and the rest being exported out in the neighboring country, Proligen had put up a profit guarantee of RM 75 million for the next 3 year.
Technically, Seacera had saw good consolidation below the region of RM 1.00. A successful break up above RM 1.00 will see Seacera trading at a healthy range of RM 1.00 to RM 1.20.
Seacera will resemble a good buy at the range of RM 1.00 with much corporate exercise such as private placement and ESOS with a minimum subscription price of RM 1.00. The recent share buy back from Encik Zulkarnin bin Ariffin as well as an a massive conversion of Seacera-WB by Datuk Mansor bin Masikon at the price of RM 1.00 had definitely put more comfort at the current price range.
A long term outlook will definitely see Seacera growing above RM 1.50 when the production line kick in in 2017.
SEACERA (7073) - Seacera - Proligen Synergy
http://bonescythe.blogspot.my/2016/02/seacera-proligen-synergy.html
