Ramsay healthcare (ASX: RHC) focuses on accelerating digital and operational transformation programs

4 min read | February 20, 2024 06:36 PM AEDT | By Team Kalkine Media

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Ramsay healthcare (ASX: RHC) focuses on accelerating digital and operational transformation programs — Image source: © Nyul | Megapixl.com

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Highlights

Ramsay is an Australia based firm that provides healthcare services across the globe

In FY23, RHC’s revenue surged by 11.58% YoY to AUD 15,339.1 million

In RHC, the highest stake is held by Paul Ramsay Holdings with a shareholding of nearly 18.74%

Ramsay Health Care Limited (ASX:RHC), an ASX-listed company, offers healthcare services across Australia, Asia, Europe, and the United Kingdom and multiple other countries via a network of clinics, hospitals, and facilities. The company operates more than 73 day surgery units and private hospitals throughout the country.

The AUD 11.65-billion-market-cap company witnessed 11.58% YoY growth in revenue to AUD 15,339.1 million in the financial year 2023 (FY23), driven by recovery in non-surgical activities and increased surgical admissions. During the stated period, EBITDA grew by 10.3% YoY to AUD 2,002.20 million and NPAT increased by 7.5% YoY to AUD 278.2 million.

In FY23, the company boosted its digital and operational transformation, negotiated higher reimbursement rates and advanced other growth initiatives.

Top 10 shareholders of RHC

The top 10 shareholders of RHC have around 45.90% shareholding in the company, while the top four have 36.40% shareholding. Paul Ramsay Holdings Pty. Ltd., Netwealth Investments Ltd. have maximum stake in RHC with a shareholding of ~18.74% and ~10.36%, respectively.

Recent business update

The company informed on 25 January 2024 that State Street Corporation and its subsidiaries have increased their stake in RHC to 6.21% on 23 January 2024.

On 28 December 2023, the company shared that it had completed the sale Ramsay Sime Darby Health Care, an Asian joint venture. In the joint venture RHC had a 50% shareholding.

Outlook

In FY24, the company expects mid-single digit revenue growth. The focus is on strengthening the core hospital business segment via a series of transformation campaigns. To improve profitability, the company is accelerating its cost control programs.

The company intends to invest AUD 250-300 million to tap greenfield and brownfield opportunities.

Share performance of RHC

RHC shares closed 0.06% down at AUD 50.79 apiece on 20 February 2024. With this, in the past one year, RHC’s share price has decreased by 23.97% and has dropped by 6.01% in the last three months.

The 52-week high of RHC is AUD 69.66, recorded on 12 April 2023, while the 52-week low is AUD 46.76, recorded on 25 August 2023.

RHC Daily Technical Chart, Source: EODHD/Others

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 20 February 2024. The reference data in this report has been partly sourced from EODHD/Others.

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