If you’ve lived in Singapore, Malaysia and Hong Kong, you’ve probably heard of Po Chai Pills.
These tiny brown pills in their familiar bottles line the pharmacy shelves across the regions.
They’re the go-to fix when your stomach acts up or when you don’t feel good from travelling.
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JMB Healthcare – A dividend powerhouse built on trust and tradition
At HK$2.2 billion market cap, JMB Healthcare is the powerhouse behind this century-old brand of trusted pills. It’s been quietly delivering stellar returns to shareholders. And it’s showing no signs of slowing down.
Now, JMB Healthcare isn’t a typical pharmaceutical company. It’s a branded healthcare operator that knows how to turn heritage into profits.
In 2021, The company spun off from Jacobson Pharma (2633.HK). This move created a “pure-play” consumer healthcare business.
Currently, it focuses on household brands in the Chinese community across Guangdong province and Southeast Asia.
You see, branded medicines like Ho Chai Kung make up the largest chunk of Jacobson Pharma’s revenues.
Meanwhile, proprietary Chinese medicines including Po Chai Pills follow closely behind.
Here’s the thing: Po Chai Pills have been around since 1896 – older than most countries! The pills were created in Foshan during the Qing Dynasty.
When the founder’s family fled to Hong Kong in 1949, they brought the formula with them. The rest is history.
The secret sauce isn’t just its 127-year-old recipe. It’s how JMB Healthcare modernized marketing while keeping the product’s authenticity.
Recent campaigns featuring popular singer Ivana Wong in catchy TV ads. The company also sponsors hit shows like “Blossoms Shanghai”.
These efforts have boosted brand recognition, especially among younger consumers.
In Singapore, Po Chai Pills has been a trusted brand for decades. Today, you’ll find Po Chai Pills in Watsons, Guardian, and countless heartland pharmacies. The brand’s trust factor in Southeast Asia remains rock solid.
Jacobson Pharma still holds about 54% of JBM Healthcare after the spin-off. Derek Sum, who founded Jacobson Pharma, remains chairman.
This provides stability and pharmaceutical expertise that many consumer brands lack.
More importantly, in April 2025, Mr. Sum increased his stake in JBM Healthcare from 62% to 71%.
This cast a YES vote, or a sign of conviction. You don’t raise your ownership in the company you already control unless you truly believe in its future.
Strong financial performance
So far, JBM Healthcare’s numbers are impressive. Its revenue jumped from HK$406 million in 2021 to HK$782 million in 2024. That’s a compound annual growth rate of 24.4%.
But here’s the kicker: Its net income exploded from HK$25 million to HK$197 million over the same period. That’s a massive 100% CAGR in net profits!
Furthermore, its gross margins jumped from 35% in 2021 to 53% in 2024, showing pricing power. Net margins also rose from 6% to 25% during the same period. But that’s not all.
JBM Healthcare is a capital-efficient business. Its ROE surged from just 2.5% in 2021 to 17% in 2024. This level of profitability puts JMB Healthcare ahead of many established healthcare peers.
Cash generation has been strong. JBM Healthcare ended 2024 with HK$206 million in cash, up from HK$70 million in 2021.
This gives JMB Healthcare plenty of firepower for future growth. And I won’t be concerned if it ever runs into a liquidity problem.
JMB Healthcare gushes dividends year after year
As a result, the healthcare giant’s dividend payments reflect this strong performance. The company paid HK$0.075 per share in FY2024.
For FY2025, this jumped to HK$0.17 per share – a 127% increase. As a result, its current dividend yield sits close to 6% yield.
So far, JMB Healthcare shares have compounded ~30% annually since its listing. Its stock performance has outpaced the broader Hong Kong market by a wide margin.
JMB Healthcare’s huge potential growth
E-commerce expansion is a major focus. Cross-border platforms like Tmall Global and JD Worldwide now contribute 20% of its total revenue.
What’s more, management expects its online segment to grow even more.
The company launched flagship stores for Ho Chai Kung and Po Chai Pills on these platforms. And early results show strong traction among mainland consumers.
The Greater Bay Area, with over 70 million people, is another key growth market. Po Chai Pills already enjoys strong brand recognition there.
And JMB Healthcare plans to leverage its existing presence in China for broader product penetration.
On the other hand, JMB Healthcare is also pushing product innovation. It recently acquired the remaining stake in a joint venture specializing in health supplements. This adds new products to target younger consumers.
The “Flying Eagle” medicated oil brand received a major marketing push. It even featured celebrity endorser Raymond Lam. This has driven early sales momentum.
Traditional Chinese Medicine (TCM) represents a strategic focus area. JMB Healthcare operates one of the few GMP-certified TCM manufacturing facilities in Hong Kong.
The concentrated Chinese medicine granules business shows steady growth. Its concentrated Chinese medicine granules business continues to expand, backed by government support for TCM in the Greater Bay Area.
With its strong cash position, management plans to acquire more companies, especially focused on complementary healthcare brands and distribution capabilities.
My final thoughts
JMB Healthcare not only ticks the checkbox for long-term dividend investors, it’s a rising star with bright prospects.
The business generates strong cash flows from trusted brands. Margins are expanding as the company gains pricing power. The balance sheet is clean with ample cash.
The dividend story keeps getting better. Total payout jumped 127% in FY2025, and management has indicated commitment to shareholder returns.
With a payout ratio around 50%, there’s room for further increases as profits grow.
The stock trades at reasonable valuations despite strong performance. At 12x P/E ratio, shares of JMB Healthcare trades at reasonable valuations, considering its growth potential and current high dividend yield.
JMB Healthcare has transformed from a pharmaceutical spin-off to a branded healthcare powerhouse. Strong financials, clear strategy, and trusted brands position it well for continued growth.
With improving margins, expanding ROE, and generous dividend increases, this Hong Kong gem deserves greater attention from the capital market.
