Meditech picture of good health

Quoted from the Standard dated 20 Oct 2009

In recent years some of the better companies to list on Hong Kong's Growth Enterprise Market have migrated to the main board after failing to lure enough investor attention.One such firm is Golden Meditech (0801), which stands to benefit from China's growing health-care sector.

Meditech makes autologous blood recovery machines and disposable blood processing chambers. It also operates the mainland's first cord blood bank.

For the year ended March 31, Meditech had a turnover HK$498 million, up 18 percent year on year. Gross profit margin stood at a relatively high 71 percent.

醫療服務一條龍

Following the acquisition of Daopei Hospitals Group, the firm became a one-stop health-care provider.

Beijing's one-child policy and an increased public awareness of the benefits of stem cells will continue to help the cord blood bank division.

9650億醫改商機

China has earmarked 850 billion yuan (HK$965 billion) to revamp the national health-care system over the next three years.

The stock peaked at HK$4.80 in 2007. At yesterday's closing price - HK$1.38 - it looks reasonable.

I must mention yesterday's suggestion - Chuang's International (0367) - soared 14.5 percent. I hope this is enough to convince investors to hold on to the property firm.