5 Health Care Stocks on ASX – NAN, PME, HLS, PNV and EBO

The benchmark index S&P/ASX 200 was trading at 6,496.4, up 0.05% from its previous close, while S&P/ASX 200 Health Care (Sector) was trading upward by 1.75% to 35,646.9 on 4 October 2019 (AEST 11:54 AM). Below discussed are five healthcare stocks that are listed on the Australian Stock Exchange.

Nanosonics Limited  

Nanosonics Limited (ASX: NAN) is a leading health care company, which manufactures and distributes the trophon electron paramagnetic resonance (EPR) ultrasound probe disinfector and its accessories.

FY2019 Highlights

The company for FY2019 ended 30 June 2019 reported a 137% rise in profit after tax to $13.6 million and a 201% increase in profit before tax to $16.8 million, including $1.8 million from net gain on foreign currency, compared to the corresponding period last year. Nanosonics also delivered a 39% growth in sale of goods and services to $84.3 million, 28% increase in capital revenue to $32.8 million and 47% surge in revenue associated with consumables and service to $51.5 million.

During the 12-month period, there was an 18% growth in the trophon installed base to 20,930 units. Geographically, during FY2019, there was a 41% rise in sales in North America to $76.5 million and a 27% growth in sales in Europe/Middle East to $3.8 million, while Asia-Pacific’s sales went up by 21% to $4 million. The company’s free cash flow for FY2019 fell to $2.6 million compared with $6.2 million in prior corresponding period, on the back of rise in inventory of $5.1 million and increase in trade and other receivables of $11.1 million.

FY2020 Outlook

  • The company intends to introduce the next significant new product by the end of FY2020, after getting all the requisite approvals.
  • Continued growth in trophon installed base
  • For FY2020, the company projects operating expenses to be about $67 million, including a 32% rise in R&D to approximately $15 million compared to FY19.
  • Profit for the fiscal 2020 would be mostly weighed towards the second half of FY2020. This projected profit would depend upon the planned increase of investment in new products and geographical expansion of its base trophon business, realisation of margin benefits due to the new GE Healthcare distribution agreement, etc.

Stock Performance 

With a market cap of $ 1.83 billion, the stock of Nanosonics Limited was trading at $6.160 on 4 October 2019 (AEST 12:01 PM), up 1.316% from its previous closing price. The stock has delivered a return of 11.36% and 36.32% in the last three months and six months, respectively.

 

Pro Medicus Limited

Pro Medicus Limited (ASX: PME) is into the distribution of healthcare imaging products across Australia, Europe and North America. The company in order to improve the liquidity of its stocks had earlier asked its founders to consider selling their stocks (up to 3 million shares each); however, they had sold 1 million shares each. According to a company announcement on 6 September 2019, further 1 million shares each have been sold by the founders.

FY2019 Highlights

For the financial year ended 30 June 2019, the company reported

  • A rise of 91.9% in net profit after tax to $19.13 million, backed by significant increase in the performance of all geographical segments
  • Increased transactions in North America and Europe, in addition to increased RIS sales in Australia
  • A 47.9% growth in revenue to $50.11 million
  • During FY2019, the company was added to S&P/ASX 200 index.
  • A key contract with Duke Health for $14.0 million
  • Another key contract worth $27.0 million with Partners Healthcare 

Stock Performance

With a market cap of $3 billion, the stock of Pro Medicus Limited was trading at $29.840 on 4 October 2019 (AEST 12:03 PM), up 3.575% from its previous closing price. The stock has delivered a return of 13.92% and 75.99% in the last three months and six months, respectively. 

Healius Limited

Healius Limited (ASX: HLS), formerly known as Primary Health Care Limited, offers diagnostic imaging services and pathology services. For the fiscal 2020, the company expects underlying NPAT to be more than FY2019. The company is undertaking strategic initiatives and redesigning of organisation to improve its business.

FY2019 Highlights

HLS, for FY2019 ended 30 June 2019, reported a 6.5% growth in underlying NPAT to $93.2 million and a 5.9% rise in revenue to $1804.5 million. Its reported NPAT had risen to $55.9 million in FY2019 compared to $4.1 million in FY2018.

The company witnessed overall positive EBIT in all the three divisions, which included double digit growth of Imaging and Medical Centres and a 46% rise in the Pathology segment. Pathology segment had rebounded in the second half of FY2019, as it had faced challenging environment in the first half of FY2019. Overall during FY2019, there has been a 4.5% increase in EBIT to $167.3 million.

Moreover, HLS’ four key projects are transformational in nature. Moreover, iCAR is anticipated to cease after FY2020, Leapfrog opex is expected to significantly decline after FY2020 and corporate renewal is likely to change after redesigning of the current organisation.

Source: Company Reports

Stock Performance 

With a market cap of $1.89 billion, the stock of Healius Limited was trading at $3.045 on 4 October 2019 (AEST 12:04 PM), up 0.164% from its previous closing price. The stock has delivered a return of 0.66% and 11.36% in the last three months and six months, respectively. 

PolyNovo Limited

PolyNovo Limited (ASX: PNV) is into the development and manufacturing of products that use NovoSorb biodegradable polymer technology. Recently, the company announced the appointment of Mr Ed Graubart as Senior Vice President of PolyNovo North America LLC. He would support the company in its sales and marketing operations in the US business. Meanwhile, as per September 2019 quarterly rebalance of the S&P/ASX Indices, the company has been added to S&P/ASX 200 Index, which was effective from 23 September 2019.

FY2020 Plans

During FY2020, the company intends to significantly expand the sales of BTM in the United States, Australia and New Zealand, expand the sale territories, introduce new products in pipeline for breast and hernia and boost the manufacturing capacity commission hernia production, in addition to filing Hernia US FDA 510(K), achieving US DoD sales and boosting EU/UK/Ireland sales with CE Mark.

Moreover, the final publication of results of CE Burn trial is due to be released by the end of CY2019. BARDA funded the pivotal burn trial, which is anticipated to start after the US FDA approves its protocol, which is expected by October/November 2019.

Meanwhile for FY2019 ended 30 June 2019, the company’s revenue grew by 128.4% to $13.68 million; however, there has been a 46.6% decline in loss after tax to $3.19 million.

FY2019 Financial Performance (Source: Company Reports)

Stock Performance 

With a market cap of $1.39 billion, the stock of PolyNovo Limited was trading at $2.170 on 4 October 2019 (AEST 12:06 PM), up 2.844% from its previous closing price. The stock has delivered a return of 26.35% and 179.47% in the last three months and six months, respectively. 

 

EBOS Group Limited

EBOS Group Limited (ASX: EBO) is into the distribution of healthcare, medical and pharma products. For FY2019 ended 30 June 2019, EBO reported

  • An increase of 4.6% in underlying EBITDA to $261.6 million
  • Growth of 5.2% in underlying NPAT to $144.4 million
  • However, during FY2019, there has been a 0.8% decline in revenue to $6930.4 million, on the back of a $425 million combined impact of lower sales of Hepatitis C medicine and also the PBS reforms in Australia.
  • Excluding sales of hepatitis C medicine and the impact of PBS reforms, the 2019 revenue rose by 5.7%.
  • Meanwhile, the company expects its FY2020 earnings to rise significantly versus FY2019.

FY2019 Financial Performance (Source: Company Reports)

Stock Performance

With a market cap of $3.72 billion, the stock of EBOS Group Limited was trading at $23 on 4 October 2019 (AEST 12:10 PM). The stock has delivered a return of 2.22% and 12.20% in the last three months and six months, respectively.


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