Five ASX-listed healthcare service providers for investors’ watchlist


  • ASX-listed healthcare service providers are playing a crucial role in providing essential services during the COVID-19 pandemic.
  • Amid the COVID-19, the companies are witnessing increasing demand for healthcare services in pathology, radiology, laboratory, etc.
  • Sonic Healthcare, Healius, Integral Diagnostics, Australian Clinical Labs and Capitol Health are ASX-listed healthcare service providers.

The health workforce of Australia has been at the frontline in dealing with the COVID-19 pandemic. The Australian government is also committed towards ensuring patient access to quality healthcare-related services in response to COVID-19. This has led to an increased use of telehealth services.

DID YOU KNOW: Australia’s health system under attack by Cyber attackers amid COVID-19

Many ASX-listed healthcare shares are equally playing a crucial role in providing their services during the COVID-19 pandemic, thus, augmenting Australia’s public health response during the pandemic.

RELATED READ: A look at five ASX multibagger healthcare stocks

In this backdrop, let us discuss five ASX-listed healthcare service providers- SHL, HLS, IDX, ACL and CAJ.

Sonic Healthcare Limited (ASX:SHL)

ASX-listed healthcare service provider Sonic Healthcare Limited provides services related to laboratory, pathology, and radiology. The Company is an internationally renowned healthcare provider and is a market leader.

5 ASX listed medicine stocks

In the financial year 2021, the Company has reported net profit growth of AU$1.3 billion, up by 149%. Furthermore, Sonic Healthcare is playing a crucial role in providing essential services amid the ongoing COVID-19 pandemic. As a result, in FY21, SHL witnessed significant revenue and earnings contribution from COVID-19 testing.

On 23 September 2021, SHL shares were trading at AU$41.600 at 10:56 AM AEST.   

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Healius Limited (ASX:HLS)

One of Australia’s leading healthcare companies Healius provides high-quality, accessible, and cost-effective healthcare services through its three main businesses- Pathology, Imaging and Day Hospital. The pathology business of Healius has played a significant role in the public health response of Australia to the COVID-19 pandemic. It has conducted more than six million COVID-19 tests to date.

In FY21, Healius generated revenue of nearly AU$2 billion, up by 22%, while the underlying EBIT of the Company increase to a record AU$266.5 million. Pathology and Day Hospitals were up significantly on the prior period and imaging improved from a lock-down impacted prior year.

On 23 August 2021, Virtus Health Limited (ASX:VRT) has entered into a share sale agreement with Healius to acquire the Adora Fertility and three-day hospitals from Healius. The acquisition is not subject to regulatory authorisations and the companies anticipate it to complete in the second quarter of FY22.

ALSO READ: How did healthcare shares HLS, AC8, and JHC perform in FY21?

On 23 September 2021, HLS shares were trading at AU$5.020 at 10:56 AM AEST.    

Integral Diagnostics Limited (ASX:IDX)

ASX-listed leading provider of medical imaging services Integral Diagnostics offers its services across Australia and New Zealand. The Company provides state of the art diagnostic services to patients as well as their referrers at 67 radiology clinics, including 27 comprehensive sites.

In FY21, the Company delivered robust growth organically as well as via acquisitions. Furthermore, the organic revenue growth was increased by 12.2% in Australia and 12.5% in New Zealand. Integral Diagnostics declared a fully-franked final dividend of 7.0 cents per share, would be paid on 6 October 2021.

The Company continues to offer patients and referrers high-quality diagnostic imaging services across Australia and New Zealand.

On 23 September 2021, IDX shares were trading at AU$4.740 at 10:56 AM AEST.    

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Image Description: Healthcare service providers playing crucial role amid COVID-19 pandemic

Australian Clinical Labs Limited (ASX:ACL)

Australian Clinical Labs is a leading private provider of pathology services across Australia. The Company has nearly 86 NATA (National Association of Testing Authorities) certified laboratories that perform a distinct range of pathology tests for different clients, including patients, doctors, hospitals and specialists.

In August 2021, ACL updated the market with its performance in FY21, the year ended on 30 June 2021. During the year, the Company successfully transitioned to being an ASX listed player with its listing on 14 May 2021. The Company has delivered total revenue of AU$674.4 million in FY21, which was 4.2% ahead of Prospectus forecast.

Furthermore, as a leading private pathology provider in Australia, ACL continues to play a vital role in the response of Australia to safeguarding the country during the COVID-19 pandemic.

On 23 September 2021, ACL shares were trading at AU$4.610 at 10:56 AM AEST.    

Capitol Health Limited (ASX:CAJ)

Melbourne-headquartered Capitol Health provides diagnostic imaging and other related services to Australia. The Company owns and operates clinics in South Australia, Tasmania, Victoria, and Western Australia.

During the period, the Company delivered revenue of AU$178.0 million, up by ~15.7% as compared to the prior reporting period. Also, CAJ maintained its final dividend (fully franked) at 0.5 cps to provide a total dividend of 1.0 cps for FY21.

Despite the industry's modest growth during FY21, the Company attained organic revenue growth of 10.3% for the full year.

Furthermore, the growth of the medical imaging industry continues to be backed by increasing population, aging demographics and Medicare Benefits Schedule (MBS) re-indexation.

On 23 September 2021, CAJ shares were trading at AU$0.385 at 10:56 AM AEST.

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