Stronger UMediC quarterly manufacturing segment

PETALING JAYA: UMediC Group Bhd’s entry into new markets in Latin America as well as rising order volumes from existing customers will bode well for the group, says Hong Leong Investment Bank (HLIB) Research.

Driven by the factors, UMediC would see its manufacturing segment grow stronger quarter-on-quarter in the first quarter of 2026 (1Q26), it added.

After meeting with its management, HLIB Research said the sales volume of respiratory products within the manufacturing segment would remain supported by global healthcare megatrends, particularly the growing ageing population.

The segment reported higher revenue of RM4.9mil for the fourth quarter of 2025 driven by higher sales to Spain and Italy, alongside stronger demand for AirdroX (inhaler spacers) in Australia.

“In terms of capacity expansion, UMediC expects the installed capacity of HydroX to reach 1.0 million bottles per month in October 2025.

“However, considering the required qualification period, the higher capacity is expected to become operational only by the second half of next year,” HLIB Research noted.

On its marketing and distribution segment, the research house said UMediC guided for a 10% to 15% revenue growth on the back of an improved order book from the Health Ministry.

“Looking further into FY26, UMediC reaffirmed its earlier optimistic guidance of a potential rebound in public sector demand, citing insights gathered from its surveys.

“Meanwhile, the private sector outlook remains robust, underpinned by both brownfield and greenfield growth plans,” it said.

Another catalyst for the group is the potential win for an ambulance contract following the Health Ministry’s procurement exercise in July this year.

HLIB Research said the tender would go across six zones while the scope of work will include vehicle sourcing, ambulance conversion, and installation of medical devices.

“UMediC is one of the 200 participating bidders, leveraging its financial strength and proven technical expertise in medical equipment integration as key competitive advantage,” it added.