Ty firm eyes medical diagnostics

Ty family-led GT Capital Holdings Inc. is studying the possibility of debuting into the medical diagnostics business to complement its existing portfolio and add a new business that will future-proof the conglomerate.

In a recent interview with the Inquirer, GT Capital president Carmelo Bautista said the group was increasingly focusing on sustainability and seeking new businesses that could last for a long period of time.

“When we look at which industries cannot be disrupted, in our perspective it’s health services,” Bautista said. “We’re still in preliminary stages. We’re doing prefeasibility studies.”

When GT Capital enters this business, Bautista said this would likely be in partnership with a foreign group with expertise in this field.

Diagnostic centers typically offer laboratory, screening and imaging services. If one needs a CT scan, ultrasound or X-ray, for instance, diagnostic centers outside hospitals now offer the same services.

To date, GT Capital has an indirect interest in health care services through its infrastructure-building affiliate Metro Pacific Investments Corp. (MPIC), of which it is the second-largest shareholder group.

Through insurance affiliate AXA, GT Capital also offers health protection products covering medical expenses in case the insured person contracts deadly diseases.

Bautista said there might be room for a new diagnostics player given that existing services available in the market were quite pricey, taking advantage of potential synergy with MPIC’s hospital network.

“We think that the market is big enough and many people get sick without being able to access the correct level of care because it’s expensive and inaccessible. We’re exploring if there is a way we can reduce the cost by increasing the volume,” Bautista said.

GT Capital grew its attributable net profit by 3 percent year-on-year to P7.34 billion in the first six months as strong earnings from the banking and property businesses offset flattish contribution from the automotive business.

The group reported that stronger earnings from Federal Land Inc. as well as higher contributions from net income of associates Metropolitan Bank & Trust Co., Metro Pacific and Sumisho Motor Finance Corp. buoyed GT Capital’s performance in the first half.

Automotive arm Toyota Motor Philippines Corp.’s (TMP) consolidated net income reached P4.43 billion in the first six months of this year, down by 2.6 percent from the previous year as consolidated revenues were flat at P76.1 billion.

TMP’s consolidated sales in the first six months slightly declined year-on-year to P76.1 billion from P76.4 billion as wholesale volume slipped by 3 percent to 72,794 units. TMP’s retail sales volume slightly increased to 73,454 units from 73,136 units, while industry retail sales volume grew by 2 percent to 195,219 units.

Federal Land grew its six-month consolidated net income by 10 percent year-on-year to P572 million in the first six months. Revenues from real estate sales for the first half grew by 12 percent year-on-year to P4.6 billion.

AXA Philippines’ consolidated life and nonlife gross premiums for the period reached P15 billion in the first half, down from P19.3 billion in the same period last year. It booked a consolidated net income of P1.2 billion in the first half, down by 12.3 percent year-on-year.

It was earlier reported that banking arm Metrobank reported P13 billion in net income for the first half, growing by 18 percent year-on-year on the back of consistent loan growth and margin expansion, higher fee-based income and prudent operational expenditures.