MediLink Global UK seeks China growth

14/11/2008 Robert Tyerman

Malaysian electronic ‘healthcare card’ pioneer MediLink Global UK is bravely seeking £2m at 18p on AIM to grow in China.

The Jersey-domiciled company, whose proprietary software instantly connects hospitals, doctors, dentists and other medical providers with medical insurers, employers and governments to process treatment claims via a credit card-type terminal, has so far distributed 1.8 million cards to 100 private hospitals in Malaysia.

MediLink, which turned a £22,000 loss into a £137,000 pre-tax profit last year, now claims 90% of Malaysia’s private hospital market and is poised to expand into the potentially massive Chinese market after signing a contract with Ping An, the People’s Republic’s second-largest life insurer.

Co-founder and chief executive officer Shia Kok Fat suggests Ping An’s 1,500 regional offices and 300,000 sales agents should put MediLink in a strong position to gain a significant role in China’s burgeoning medical insurance market.

He wants the company, whose chairman is Norman Lott (finance director of loss-making AIM biotech dog ReGen Therapeutics), to attack other markets in the region to establish itself as a recognised ‘third-party administrator’ and corporate client server on this sector throughout South-East Asia.

Dowgate Capital is nominated adviser to MediLink, whose broker is SV Securities. Directors own 70 per cent of the company, which scored last year’s turnaround on sales increased 57% to £644,000. Fans argue this type of insurance market, especially in that part of the world, is counter-cyclical, or even non-cyclical, and suggest further hefty profits and sales gains are on the cards for 2008.

There is clearly an element of risk in MediLink’s ambitious strategy. But bold investors still willing to have a go might consider a punt.

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