Compumedics signs lucrative China deals
An agreement worth $20 million signed with sleep diagnostics distributor in Northern China
Second agreement, worth $4.4 million, inked with sleep and neurological distributor in Eastern China
Special Report: Compumedics, a global medical device company specialising in sleep, brain and ultrasonic blood flow monitoring, has signed two new four-year distribution agreements with long-standing partners in China worth a combined $24.4 million.
These deals further strengthen Compumedics' (ASX:CMP) footprint in Asia, and China in particular, where the company has a long history and current distribution partners of more than 25 years.
The first $20m agreement extends Compumedics' established partnership with its long-term Northern China distributor focused on sleep diagnostics.
The second, valued at $4.4m, renews a long-standing relationship with an Eastern China distributor focused on sleep and neurology.
Both agreements include a minimum of 10% per annum growth commitment, providing a clear trajectory for expanding sales in one of Compumedics' most strategically important markets.
The agreements reflect the company's continued strategic shift toward a more diversified and resilient revenue base, both geographically and across product lines.
Strengthening key relationships in Asia, particularly in China, aims to reinforce Compumedics' ability to drive consistent growth through its core sleep and neurology platforms.
With a solid foundation in place and demand accelerating across multiple international markets, the company is working to remain well positioned to scale efficiently and deliver sustained, profitable growth into FY26 and beyond.
Return to profitability in FY25
Compumedics recently reported record revenue of $51m and sales orders of $63.4m in FY25 and a return to profitability with EBITDA increasing to ~$3m.
Its sleep and neurology segment orders rose 39% to $53m in FY25, led by US sleep diagnostics growth up 102% to $23.5m.
Its Neuroscan Orion LifeSpan magnetoencephalography (MEG) orders totalled $5.9m, with three systems in progress for reported revenue in FY26 valued at ~$15m.
MEG is an advanced brain imaging technique that maps neural activity by detecting the tiny magnetic fields produced by electrical currents in the brain.
Compumedics' Neuroscan Orion LifeSpan MEG system offers enhanced precision and full integration with its CURRY software, which records and analyses EEG, MEG and ERP for comprehensive brain function insights.
The company has reaffirmed its FY26 guidance of revenue of at least $70m and EBITDA of ~$9m.
'China remains key engine for expansion'
Compumedics is establishing itself as the dominant supplier of MEG technology in the growing Chinese neurosciences market.
In March the company received a new order from Hangzhou Normal University (HZNU) in China for its MEG system valued at $5.7m, which is scheduled to ship in early 2026 following site preparations.
That order brings installations to four Compumedics MEG labs in China for a total of ~$20m in revenues.
Executive chairman and CEO Dr David Burton said the new agreements highlighted Compumedics' strategic momentum and supported its long-term growth plans.
'These agreements demonstrate the strong momentum behind the step-change underway at Compumedics, a shift focused on profitable growth, recurring revenue and geographic diversification,' he said.
'China remains a key engine for expansion and these multi-year contracts secure predictable, growing revenues in one of our most strategically important markets.
'Coupled with increasing traction in the US and across our connected platforms, we are now scaling a more focused, cash-generative global business.'
This article was developed in collaboration with Compumedics, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
ABC News
4 hours ago
- ABC News
Kmart denies sourcing any products from factories linked to forced labour in China
An Australian-based Uyghur group has filed legal action in the Federal Court against Kmart, alleging the retail giant is sourcing some of its products from factories linked to forced labour camps in western China. Kmart has denied the allegations. Ramila Chanisheff, representing the Australian Uyghur Tangritagh Women's Association (AUTWA), has sought documents from Kmart — requesting the retailer prove its public claims of operating a "sustainable" and "ethical" company, with products free from slavery or forced-labour. The court action is seeking preliminary disclosure of documents relating to Kmart's supply chains that could be linked to labour in the Uyghur homeland, now known as the Xinjiang. Australia, unlike the United States and some European nations, does not prohibit goods imported from China's Xinjiang region. The US has banned goods from that region since 2021, over credible evidence that many products are manufactured there using forced labour — particularly involving Uyghur Muslims and other minority groups. Jennifer Kanis, a solicitor from Maurice Blackburn representing AUTWA, said the legal case was designed to compel Kmart to, "prove their public position". By cross-referencing Kmart's supplier list with "numerous credible reports" connecting companies in the Xinjiang region to forced labour, the plaintiffs say they will allege they found a match for at least two factory suppliers. The application alleges at least two garment suppliers are linked to the use of Uyghur forced labour in the Uyghur region. In a statement, Kmart said it was disappointed AUTWA took this course of action and had invited the association to meet with them "several times" to understand their concerns. "Kmart has been in correspondence with the applicant's lawyers for over 12 months and has provided extensive details of our Ethical Sourcing Program," the spokesperson said. "For over 15 years, we have had in place an Ethical Sourcing Program, which helps us to identify and mitigate modern slavery risks, including the risk of forced labour, in our operations and supply chains. "Suppliers in the Kmart Ethical Sourcing Program are regularly monitored through activities including our site visits, audit programs and investigations if we receive any reports or complaints of concern." The spokesperson also said it was the first Australian retailer to publicly disclose its factory list on its website for transparency. Human rights groups and the United Nations have previously accused China of committing crimes against humanity and possible genocide against the Uyghur population and other mostly-Muslim ethnic groups in the north-western region of Xinjiang. The Chinese Government has repeatedly denied these claims. Freya Dinshaw from the Human Rights Law Centre, said alarm bells had been "ringing for a long time" regarding forced labour risks, especially in the Chinese garment industry, and pointed out that "85 per cent of the cotton in China comes from the Xinjiang region". Australian retailers, she said, "have been on notice for some time" regarding these risks. The allegations against Kmart also sheds light on the potential shortcomings of Australia's current Modern Slavery Act. Professor Justine Nolan of the Australian Human Rights Institute said while Australia was considered a leader when it introduced the Act in 2018, the law primarily imposed a mandatory reporting obligation for large companies (those with over $100 million in annual consolidated revenue) to identify modern slavery risks, but not an obligation to act on those findings. And a quarter of Australian companies were not complying with their basic reporting requirements, because there is "no significant enforcement framework," according to a Federal Government review led by John McMillan in 2023, "A non-compliance rate of 25 per cent just by false reporting or not reporting: that shows that the law that we currently have are not sufficient and that we really do need reforms," Professor Nolan said. She said other jurisdictions, such as the European Union and the United States, have moved further, adopting laws that mandated human rights due diligence and implementing forced labour import bans, which Australia lacks. A 2023 independent review of the Act confirmed deep inadequacies and found that "no meaningful change had been shown for people at the greatest risk of modern slavery." Last month the Australian Government released a consultation paper aiming to strengthen the Modern Slavery Act, focusing on streamlining existing mandatory reporting criteria (link here: "The reforms they are proposing are useful, not sufficient," Professor Nolan said. "We're still not tackling the root causes of the problem and we need to think about introducing an obligation to act, not just an obligation to report." Australia continues to import an estimated $27 billion worth of goods at risk of forced labour into the country every year with no laws that would prevent the importation of such goods, according to a 2023 report from human rights group Walk Free, an arm of Andrew Forrest's Minderoo Foundation. Ramila Chanisheff said if Kmart could prove beyond doubt that they were not linked to forced labour, the association would be satisfied. However, if links were found, AUTWA's call to action would be for Kmart to "divest" from those suppliers. "You can get your cotton from elsewhere," she said. Ms Kanis, said a successful outcome would be greater transparency and accountability in relation to being able to make claims about ethical sourcing, ensuring these were not "empty claims". Ms Chanisheff, who was born in East Turkestan/Xinjiang, but raised in Australia, still has family and friends in the province. She believes Australians do care about how their products and that "consumers can make a difference". Professor Nolan said without stronger laws, Australia risks becoming a "dumping ground" for goods made with forced labour if other countries implement effective import bans. She also noted a "willingness among Australian companies to go further" and align with global standards, but the current modern slavery law, introduced to federal parliament in 2018 is "not sufficient". "Seven years is a long time to wait for people who are working in modern slavery every day," she said. In a statement, the Attorney-General Michelle Rowland said the federal government "is committed to combating modern slavery" and "its immediate priority is implementing its response to the statutory review of the Act to strengthen its operation." Minister Rowland also said the public consultation process "will inform the development of balanced measures to support and incentivise Australian businesses to take actions to eliminate modern slavery risks and practices, and combat them in their supply chains."
News.com.au
5 hours ago
- News.com.au
Labor government to increase international student cap by 25,000 for 2026 academic year
Australia will lift the number of foreign students allowed to study in the 2026 academic year to 295,000, in a bid to safeguard the 'incredibly important export industry'. The figure is 25,000 higher than the number allowed by Education Minister Jason Clare for the 2025 academic year, but is still 8 per cent lower than the influx of international students after borders opened post-pandemic. It will also not account for students at TAFE or those who enrol in a public-funded university but previously attended an Australian high school. Universities will be able to request an increase to their 2025 allocations, but they must be able to show an increased engagement with Southeast Asia - as part of Australia's Southeast Asia Economic Strategy to 2040 - and that they have enough student accommodation to cater to both domestic and international students. The largest proportion of students from overseas were from China (23 per cent), India (17 per cent) and Nepal (8 per cent). Mr Clare said international education - worth $51bn to the Australian economy in 2023-24 and employing more than 250,000 workers - was an 'incredibly important export industry', but needed to be sustainably managed. 'International education doesn't just make us money - it makes us friends,' he said. 'This is about making sure international education grows in a way that supports students, universities and the national interest.' Home Affairs Minister Tony Burke said the government's priority was ensuring the international education sector maintained the 'integrity of the migration system'. 'We are making sure student visa processing supports genuine education outcomes and our strategic priorities – including increasing provision of student accommodation,' he said. 'This is about backing providers who do the right things and giving them the certainty they need to grow sustainably.' Skills and Training Minister Andrew Giles also welcomed the exclusion of TAFE from the cap, saying it would allow the international VET sector to grow sustainably and better meet skills needs. 'The diverse nationalities of international VET students present an opportunity to strengthen our international partnerships,' he said. 'From today, VET providers can plan recruitment with confidence for 2026, knowing they will continue to enjoy equitable access to student visa processing.'
Perth Now
6 hours ago
- Perth Now
Shares in Asia rally, dollar lower against yen
Shares in Asia rose for a second consecutive session and the US dollar held most of its losses on Tuesday as investors increased bets the Federal Reserve will act to prop up the world's largest economy. US shares rallied on Monday on generally positive earnings reports and increasing bets for a September rate cut from the Fed after disappointing jobs data on Friday. Oil remained lower after output increases by OPEC+ and threats by US President Donald Trump to raise tariffs on India over its Russian petroleum purchases. Japan's Nikkei rallied, with data showing a jump in the nation's service sector activity in July. "There are signs of weakness in parts of the US economy, that plays to the view that maybe not in September, but certainly this year that the Fed's still on course to ease potentially twice," said Rodrigo Catril, senior currency strategist at National Australia Bank. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.6 per cent in early trade. The Nikkei climbed 0.5 per cent after falling by the most in two months on Monday. The dollar dropped 0.1 per cent to 146.96 yen. The euro was unchanged at $US1.1572 ($A1.7904), while the dollar index, which tracks the greenback against a basket of major peers, edged up 0.1 per cent after a two-day slide. Odds for a September rate cut now stand at about 94 per cent, according to CME Fedwatch, from a 63 per cent chance seen on July 28. Market participants see at least two quarter-point cuts by the end of this year. The disappointing nonfarm payrolls data on Friday added to the case for a cut by the Fed, and took on another layer of drama with Trump's decision to fire the head of labour statistics responsible for the figures. News that Trump would get to fill a governorship position at the Fed early also added to worries about politicisation of interest rate policy. Trump again threatened to raise tariffs on goods from India from the 25 per cent level announced last month, over its Russian oil purchases, while New Delhi called his attack "unjustified" and vowed to protect its economic interests. Second-quarter US earnings season is winding down, but investors are still looking forward to reports this week from companies including Walt Disney and Caterpillar. Tech heavyweights Nvidia, Alphabet and Meta surged overnight, and Palantir Technologies raised its revenue forecast for the second time this year on expectations of sustained demand for its artificial intelligence services. "Company earnings announcements continue to spur market moves," Moomoo Australia market strategist Michael McCarthy said in a note. In Japan, the S&P Global final services purchasing managers' index climbed to 53.6 in July from 51.7 in June, marking the strongest expansion since February. Oil prices were little changed after three days of declines on mounting oversupply concerns, with the potential for more Russian supply disruptions providing support. Brent crude futures were flat at $US68.76 ($A106.38) per barrel, while US crude futures dipped 0.02 per cent to $US66.28 ($A102.55) a barrel. Spot gold was slightly higher at $US3,381.4 ($A5,231.6) per ounce. The pan-region Euro Stoxx 50 futures were up 0.2 per cent, while German DAX futures were up 0.3 per cent and FTSE futures rose 0.4 per cent. US stock futures, the S&P 500 e-minis , were up 0.2 per cent. Bitcoin was little changed at $US114,866.06 ($A177,716.35) after a two-day rally.
