Performance of ASX Healthcare Shares this Reporting Season - RHC, AGH

The healthcare sector in the Australian Stock Exchange has been one of the top-performing sectors throughout 2019. In the current reporting season, shares from almost every sector have been affected, including healthcare shares. The stocks were first affected by the bushfires, and subsequently by the COVID-19 pandemic.

During the reporting season, several companies have shared their financial outcomes. Despite the significant challenges the Australian economy is facing, some of the stocks have recorded positive performances as well. There are many health companies to watch for in the forthcoming years that have reported positive performance amidst bushfire and coronavirus outbreak.

Also Read: Opportunities to be Tapped in the Healthcare Sector Amid Coronavirus

In this article, we are highlighting two health care companies that could be the best ASX healthcare stocks in 2020 – RHC and AGH.

Ramsay Health Care Limited (ASX:RHC)

An ASX-listed health care player, Ramsay Health Care Limited is focused on offering high-quality services including hospital management services. The Company also offers exceptional patient care services. RHC is a large, highly diversified, private health care sector company offering acute and primary health care facilities from its 480 facilities across 11 geographies.

Ramsay has various facilities and services, including:

The Company revealed its financial results for H1 FY2020 (period ended 31 December 2019) highlighting that the performance was consistent with respect to the expectations.

During H1 FY2020, Ramsay maintained its investment in research and infrastructure to place the business for the upcoming years, including IT systems integration and digitalisation.

Financial highlights:

• RHC stated that net profit after tax (core) was recorded at approximately $273.6 million, up by 3.4% compared to the previous corresponding period (pcp).
• The Company reported revenue of ~$6.3 billion up by 22.5% compared to pcp.
• EBITDAR reported to nearly $1.1 billion up by 17.4%.
• The core earnings per share of Ramsay were reported at 132.5 cents, up by 3.7%.
• The Company announced an interim dividend of 62.5 cents (100% franked), an increase of 4.2% against pcp.
• Notably, the Company has a strong balance sheet and dependable cash flow generation that continue to support the constant requirement for brownfield capacity extension, continuing requirements of working capital as well as for upcoming acquisitions.

Ramsay’s businesses in Europe, Asia and the UK performed well during H1 FY2020. However, its overall performance was negatively impacted by the challenging conditions in Australia. The Company also highlighted the positive signs for its business growth in Europe and the UK.

Stock Information:

On 16 March 2020, stock of RHC last traded at $56.170, down by 10.128%. The Company had a market capitalisation of nearly $12.63 billion, and ~202.08 million shares outstanding. RHC’s 52 weeks high and low prices were $80.930 and $54.950, respectively.

Althea Group Holdings Limited (ASX:AGH)

An ASX-listed licensed medicinal cannabis sector player, Althea Group Holdings Limited is into the supply of pharmaceutical-grade cannabis formulations for the patients having debilitating diseases. Currently, Althea operates in the cannabis market of Australia and the UK and has plans to expand in European as well as Asian developing markets.

The Company updated the market with its half-yearly report for the period ended 31 December 2019, highlighting its financial as well as operational updates. Key achievements from the first half of FY2020 are:

• The Company generated revenue of approximately $1.8 million from ordinary activities, up by 963.8%.
• Patient growth exceeded targets, and sales continue to create positive patient growth for the Company, with a total of ~4,018 patients being prescribed Althea’s medicinal cannabis products in Australia to 31 December 2019.
• Portfolio extension, in October 2019, the Company expanded its medicinal cannabis product portfolio with the successful launch of Althea CBD100.
• In June 2019S after receiving the first prescription for Althea medicinal cannabis in the UK, the market has continued to experience steady growth, with a total of 88 prescriptions received as at 29 January 2020.
• In early November 2019, Althea signed a Memorandum of Understanding (MOU) with nimbus health GmbH for the sale and distribution of Althea’s medicinal cannabis products throughout Germany.
• During the first half of the financial year 2020, another significant achievement was the acquisition and settlement of Peak Processing Solutions, a Canadian-based contract manufacturing as well as cannabis extraction organisation.

Stock Information:

On 16 March 2020, stock of AGH last traded at $0.160, down by 17.949%, from its previous close. The Company had a market capitalisation of nearly $45.5 million, and ~233.31 million shares outstanding. AGH’s 52 weeks low and high prices were $0.160 and $1.445, respectively.

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