Elsoft diversifies its revenue in medical equipment market
KUCHING - Elsoft Research Bhd (Elsoft) is diversifying its revenue base by venturing into the medical equipment market.RHB Research Institute Sdn Bhd (RHB Research) said Elsoft plans to diversify its revenue stream from its core light-emitting diode (LED) related business to the medical equipment business particularly in connection to automated dialysis machines to tap on its core competency in embedded control systems.
Elsoft’s embedded systems has the ability to install programmes for every electronic device, and in the case of medical instruments, such systems can be used in devices for chemical analyses of fluid samples for example, urine, blood or automated dialysis machines.
RHB Research observed that Elsoft has rolled out its pilot project in June and is on-going at present.
Following a company’s visit, the research firm said Elsoft is expecting to recognise the sales from the medical equipments and machines by the first quarter of financial year 2015 (1QFY15).
Revenue generated from the sales of those equipments and machines would help to boost the company’s financial year 2015 (FY15) and FY16 earnings growth, it said.
In the meantime, RHB Research said Elsoft continues to grow its expertise as a testing equipment manufacturer for the LED segment.
The research firm noted the LED testers produced by Elsoft inspects high-brightness LED modules used in general lighting and in automotive industries.
RHB Research observed that the testers are highly customised with special functions and are capable of testing between 3,000 and 8,000 units of LED chips per hour.
On another note, the research firm pointed out that Elsoft has received approximately RM30 million worth of orders since January this year.
RHB Research said the company is confident of securing new orders in the coming quarters.
Moving forward, RHB Research projected Elsoft’s core LED testing business to grow by nine to 10 per cent over FY14 to FY16.
The research firm believed that the company’s earnings growth will be driven by increasing demand in the automotive sector, where LED penetration is on the rise.
Additionally, RHB Research is optimistic that Elsoft’s venture into the medical equipment segment will witness favourable results in FY15 when the company pushes the segment to the market on a bigger scale.
The research firm estimated revenue contribution from its medical equipment segment will sustain its earnings growth by 20 per cent to 40 per cent between FY14 to FY16.
Hence, given the company’s sound and stable financial track record in the past 10 years with profit before tax margin the region of 30 to 50 per cent since listing in 2004, RHB Research is upbeat that Elsoft’s forward earnings growth will be sustained.
Source: Borneo Post Online
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KUCHING - Elsoft Research Bhd (Elsoft) is diversifying its revenue base by venturing into the medical equipment market.
RHB Research Institute Sdn Bhd (RHB Research) said Elsoft plans to diversify its revenue stream from its core light-emitting diode (LED) related business to the medical equipment business particularly in connection to automated dialysis machines to tap on its core competency in embedded control systems.
Elsoft’s embedded systems has the ability to install programmes for every electronic device, and in the case of medical instruments, such systems can be used in devices for chemical analyses of fluid samples for example, urine, blood or automated dialysis machines.
RHB Research observed that Elsoft has rolled out its pilot project in June and is on-going at present.
Following a company’s visit, the research firm said Elsoft is expecting to recognise the sales from the medical equipments and machines by the first quarter of financial year 2015 (1QFY15).
Revenue generated from the sales of those equipments and machines would help to boost the company’s financial year 2015 (FY15) and FY16 earnings growth, it said.
In the meantime, RHB Research said Elsoft continues to grow its expertise as a testing equipment manufacturer for the LED segment.
The research firm noted the LED testers produced by Elsoft inspects high-brightness LED modules used in general lighting and in automotive industries.
RHB Research observed that the testers are highly customised with special functions and are capable of testing between 3,000 and 8,000 units of LED chips per hour.
On another note, the research firm pointed out that Elsoft has received approximately RM30 million worth of orders since January this year.
RHB Research said the company is confident of securing new orders in the coming quarters.
Moving forward, RHB Research projected Elsoft’s core LED testing business to grow by nine to 10 per cent over FY14 to FY16.
The research firm believed that the company’s earnings growth will be driven by increasing demand in the automotive sector, where LED penetration is on the rise.
Additionally, RHB Research is optimistic that Elsoft’s venture into the medical equipment segment will witness favourable results in FY15 when the company pushes the segment to the market on a bigger scale.
The research firm estimated revenue contribution from its medical equipment segment will sustain its earnings growth by 20 per cent to 40 per cent between FY14 to FY16.
Hence, given the company’s sound and stable financial track record in the past 10 years with profit before tax margin the region of 30 to 50 per cent since listing in 2004, RHB Research is upbeat that Elsoft’s forward earnings growth will be sustained.
Source: Borneo Post Online