To ensure quality healthcare is provided to the people, healthcare experts rely on advanced technologies and high-quality equipment. One such company that works closely with the industry in providing these solutions is Singapore-based leading medical technology integrated solutions provider, OEL (Holdings).
Established in 1984, OEL (SGX Code: 584), was listed on the Catalist board of the Singapore Exchange (SGX) on December 1994. It has over 6,000 products in its portfolio, focusing on high-tech medical devices ranging from in-vitro diagnostics like glucose monitoring devices to medical devices like Samsung Medison Ultrasound.
Since its restructuring in early 2020, OEL has also been involved in early childhood education through Discovery Kidz Preschool. Its education services focus on the social and emotional development of children as well as the psychological, physical, and behavioural health of each child.
Here are 5 things to know about this local high-tech healthcare company.
Can you elaborate on any future roadmap or key milestones that OEL envisions to ensure continued expansion and market presence?
We have recently been awarded (i) master agreement to supply blood glucose monitoring and digital solutions to public health institutes pharmacies for the next 3 years with the option to extend for another 2 years till 2029, and (ii) framework agreement to supply laboratory solutions to public academic institutes for the next 3 years till 2026. These agreements are a testament to the robust capabilities we have developed since our restructuring three years ago.
Going forward, these agreements serve as a launchpad for our continued expansion. We aim to harness the momentum these partnerships provide to further penetrate the healthcare and academia sectors in Singapore.
Our roadmap is clear, which is to deepen integration into the healthcare sector, expand reach, enhance services offering. Thereby, reinforcing our market leadership and delivering sustained value to our stakeholders.
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What are some of the Group’s potential catalysts that investors can be excited about in the near term of 1 to 2 years?
Investors have several exciting potential catalysts to look forward to from OEL in the next 1 to 2 years. These include:
– Medical Devices and Dental Sector: OEL is focused on continuing its supply of turn-key supply-chain solutions, which are in high demand by Singapore Public Health Institutes. Additionally, the company is building digital solutions coupled with devices and applying for the Cyber Security Label. We also plan to launch the AJJ Robotics portfolio featuring the ErgoClean Patient Hygiene Systems.
– In-vitro Diagnostics: OEL is set to drive profits with lab diagnostics and biobanking equipment, expecting to generate more revenue with high margin for the next 3-years. There’s also a significant focus on point-of-care diagnostics, with recurring sales anticipated from Blood Glucose monitoring systems and a complementing digital app these for the next 5-years. Furthermore, AI developments in diabetes management in collaboration with our partner are projected for the markets of Southeast Asia.
– Ultrasound Sector: The company aims to expand its AI-powered installation base in Public Hospitals, potentially increasing revenue, and is exploring new revenue models with Samsung Medison.
– Corporate Development: OEL plans to widen its partnerships with global leaders in in-vitro diagnostics and AI development to enhance its product offerings along the patient care pathway.
These initiatives are set to bolster OEL’s revenue growth and present a strong case for investment due to their alignment with technological advancements and the evolving needs of healthcare infrastructure.
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With many economists predicting a slowing economy and a possible recession in the near term, how is the Group preparing itself to ride out this storm?
In anticipation of a potential economic slowdown or recession in the near term, OEL is prepared to navigate through such challenging times. The Group is strategically positioned within the healthcare sector, which serves as a critical pillar in the social economy and tends to be more resilient during economic downturns. Over 80% of OEL’s clientele comprises government institutes, which suggests a stable demand for their products and services.
The healthcare industry is less susceptible to cyclical fluctuations due to the essential nature of its services, the rising costs associated with healthcare, and the demographic trend of an aging population. OEL’s alignment with Singapore’s Healthcare Strategy, which emphasizes preventive care, stronger patient-doctor relationships, and cost-effective healthcare spending underscores the company’s integral role in the country’s healthcare ecosystem. OEL is well-prepared to continue its growth and maintain stability even as economists predict an economic downturn.
Could you share some of the key ESG factors that are material to OEL and how that can create long-term value for your stakeholders?
OEL’s commitment to ESG principles is demonstrated through its adoption of a circular economy. We contribute to this by offering biodegradable medical and laboratory disposables, aligning with Singapore’s Zero Waste Masterplan and reducing our carbon footprint. In addition, our dedication to being an equal opportunity employer reflects our commitment to social responsibility.
These initiatives not only adhere to international guidelines but also underscore OEL’s dedication to sustainability. We aim to build long-term stakeholder value by enhancing our environmental responsibility and societal contributions.
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Why should investors take a closer look at OEL?
Contrasting with the traditional industry-focused portfolios, OEL operates in the rapidly expanding segment of Singapore’s AI-Healthcare market, with higher growth rates that outpace the general healthcare sector’s mid-single digit growth.
OEL emphasises multidisciplinary healthcare goals, focusing on improving efficiency, effectiveness and experience. This involves strategic collaborations with global frontrunners in digital AI and robotics, a sector known for its high entry barriers and potential for substantial returns.
OEL’s strategy involves securing government tenders though our turn-key supply chain solutions, providing long-term recurring revenue and is a testament to the company’s resilience amidst market fluctuations. By sourcing quality products, both regionally and globally, we fortify our supply chain and play a critical part in supporting Singapore’s aging demographic while meeting the country’s need for cost-effective healthcare solutions.
Editor’s Note: Some answers for this article were extracted from the SGX 10 in 10 series published on 9 January 2024 and have been republished with permission. You can read more on OEL (Holdings) (SGX: 584) on the SGX website.
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