UMediC forecasts raised on strong pre-tax profit

PETALING JAYA: Medical device manufacturer UMediC Group Bhd’s profit forecasts for the financial year ending July 31, 2026 (FY26) and FY27 have been raised by 16% and 12%, respectively, by Hong Leong Investment Bank Research.

This is after the company reported fourth quarter ended July 31, 2025 (4Q25) financial results late last week that came in above market consensus.

The research house, which has also raised the target price to 36 sen from 31.5 sen as a result of the upward earnings revision, has however, maintained a “hold” rating on the stock as the share price has run ahead of fundamentals.

UMediC shares closed unchanged at 38 sen last Friday before the long weekend break.

The company’s positive 4Q25 results stemmed primarily from the stronger-than-expected pre-tax profit margin realised at its distribution division.

Compared to 3Q25, revenue improved by 5.6%, lifted by stronger demand from both divisions.

Core post-tax profit and minority interests expanded at a greater pace of 60% driven primarily by pre-tax profit margin expansion in the distribution division, in which pre-tax profit margin jumped to 40% versus 13% possibly due to a more favourable product mix.