Fisher & Paykel Healthcare Corp Ltd is into designing and marketing of the medical device products and system concerned with the respiratory care, acute care and the treatment of obstructive sleep apnea. The company has its footprints in North America, New Zealand, Asia Pacific and Europe.
The company engages through four divisions and is present in 120 countries. Some of the significant products of the company include adult respiratory products, Optiflow – a nasal high flow therapy, a noninvasive and invasive ventilation systems among other products.
FPH has recently clocked an all-time high on the back of a new product launch. The company has rolled out the F&P 950 Heated Humidification system which is a neonatal respiratory care device. According to the management, the feedback from the nurses have been encouraging in terms of performance and quick access. Starting with the ANZ region, the company is looking to roll out the device in other geographies. F&P950 would ensure earnings boost.
The company is upbeat about the financial year ending March 2019 as the guidance suggest. Operating revenue for H1FY2019, is estimated at NZ$510 million and net profit after tax is estimated at NZ$95 million.
FPH will distribute a dividend of 12.50 NZ cents per ordinary share, a surge of 12% against the final dividend last year. For the fiscal 2018, the company posted operating profit of 248.9 NZ$ million, an increase of 12% compared to the previous year. Cash flow from operating activities has increased which qualifies as the positive for the company. With the company expanding in infrastructure terms, the capex also went North of NZ$98.7 million.
Profit after tax has been growing consistent, clocking 190.2 NZ$ million for the fiscal 2018.
The price is currently hovering around its 52-week high of 14.65 and has delivered year to date return of 12.67%. After three failed attempts, the stock finally gave a breakout from its resistance level of 13.01 in June, clocking high of 14.16. From that level, the stock witnessed a healthy correction and forming a strong support around 13.12 levels. After a brief cooldown and shrinking price action, the stock has given downward sloping trendline breakout this month to reach its all-time high. Volume was supportive of the up movement in the stock. Bollinger bands suggested price tightening with the increase in volume over past couple of months which was a strong indicator of the upcoming rally in the stock.
Going forward, we could see another minor correction in the stock which could present a good opportunity for fresh entry for the investors who missed the previous rally. Immediate support for the stock would come around 14.50 followed by 13.98 whereas resistance would be seen at 14.65 followed by 14.72
The Income available from dividends remains attractive for many investors.
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