UMediC poised for solid near-term revenue visibility

By the Editorial Team · Friday, September 18, 2026

UMediC Group Bhd reported a 17% rise in its order book to RM18 million as of July and plans to expand its manufacturing capacity by up to 15% in FY27. The company also secured a RM63 million tender for government ambulances, with revenue recognition expected within 9 to 12 months after the award decision, highlighting strong near-term growth prospects.

UMediC Group Bhd reported a 17% increase in its order book to RM18 million as of July, providing the company with a solid view of near-term revenue prospects. The medical and healthcare group is targeting a 10% to 15% expansion in manufacturing capacity for the financial year 2027 (FY27).

According to a recent research note from Phillip Capital Research, the current order book consists of 67% distribution, 31% manufacturing, and 1% medical devices. Most of these orders are expected to be recognised as revenue within the next three to six months. The group’s manufacturing operations are running at approximately 70% to 80% utilization, with annual capacity having increased to six million units in the fourth quarter of FY26 from five million units in the preceding quarter. UMediC aims to further augment this capacity by up to 15% in FY27.

The company has also introduced new Aseptic Blow-Fill-Seal machinery, which consolidates multiple production steps into a single process. This upgrade is expected to improve manufacturing efficiency and reduce delivery lead times.

Separately, UMediC’s tender book stands at RM121 million, divided between distribution (48%) and medical devices (53%). The medical devices segment includes a RM63 million tender for around 150 ambulances intended for government hospitals. The tender covers primarily standard ambulances, with potential opportunities for 4x4 and specialised vehicles to serve hard-to-reach areas. The award decision is anticipated by the end of 2026, following the announcement of Budget 2027. Management has indicated that margins on this contract could reach double digits, although delivery timelines are extended due to vehicle procurement and customisation processes. Revenue from this tender is expected to be recognised approximately nine to twelve months after contract award.

UMediC has recently increased its manufacturing product prices by 3% to 5% to offset elevated plastic resin costs.

Phillip Capital Research maintains a “buy” rating on UMediC shares with a 12-month target price of 43 sen, based on an unchanged price-to-earnings ratio of 17 times projected FY27 earnings per share of 2.5 sen. The research firm highlighted UMediC’s manufacturing growth prospects and product pipeline as key drivers, while noting potential downside risks including a slowdown in medical equipment demand and operational disruptions.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.