Asian Centre for Liver Diseases and Transplantation Limited (AJJ, formerly Costarella Design Ltd) is a Singapore-based private one-stop centre for treatment of liver disease. ACLDT consists of outpatient facilities as well as in-patient liver unit with its own Liver Intensive Care Unit (LICU). The company also offers other services including general medical screening, medical oncology & chemotherapy, gastroenterology, and respiratory medicine.
Very interesting little company here. When viewing results use their annual reports as the results listed under the financial section in commsec uses the results of the company they took over (in order to list on the ASX) which was basically a bankrupt business.
I reviewed as far back as 2005 and the company has been making a profit every year with good cash flow also.
Basically the growth prospects for this company are massive. They pioneered living liver transplantation (massive improvement as donors dont lose their organ!). The company has also set up satellite clinics which can remotely diagnose patients.
Latest HY report shows reduced profit - which is due to increased staff expenses and acquisitions in relation to new clinics being opened in Indonesia and Vietnam. Despite the reduced profit, cashflow remained strong.
With the increase in population, coupled with the tendency for the Asian lifestyle to emulate the Western world - one can only see the number of liver problems amongst this section of the world increasing...
SP has come off very strongly lately due to horrible liquidity in the stock (if someone wants to get out quick...the stock is going to get smashed, while the reverse holds true also). Management seems driven to increase investor awareness and has flagged plans for investor roadshows.
It seems management has a long term view rather than a short term view and I think this is something that alot of value investors will appreciate.
Looking forward to bouncing ideas and gaining others insights into this small, but very interesting company.