Three NZX healthcare stocks to watch out in 2021

  • January 14, 2021 08:58 PM NZDT
  • Team Kalkine
    Team Kalkine
    Team Kalkine
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Three NZX healthcare stocks to watch out in 2021

Summary

  • Fisher and Paykel healthcare set to grow due to the requirement of hardware for respiratory problems.
  • Ryman Healthcare has ambitious plans of opening six more integrated villages for the elderly.
  • Oceania healthcare set to use proceeds of bond issue for future growth.

The COVID-19 pandemic shattered the world economy, but healthcare sector remained relatively insulated from the impact of COVID-19. In fact, some of the healthcare companies flourished as they came up with new vaccines and therapies related to the disease.

Some healthcare companies that were into virtual care also saw a good season last year. The healthcare industry includes a wide range of companies, including that offer medicines, diagnostics, medical devices, and health insurance services.

So due to the increased demand for all these services, the healthcare stocks performed reasonably well across the globe, and in spite of healthcare being a defensive industry, it generated a lot of interest among the investors in 2020.  

Interesting Read:  All eyes on NZ Government’s COVID-19 Vaccine rollout

In the year 2021, several healthcare companies appear to be in a strong position.

Here are the three stocks in healthcare sector to look for in 2021.

Fisher and Paykel Healthcare Corporation Ltd

Fisher and Paykel (NZX:FPH) has shown spectacular results in 2020. Its Net profit after tax in second part of the year was NZ$225.5 million, up 86%, and its operating revenue was up 59% at NZ$910.2 million. The strong results were due to the rise in demand for the company’s products that were used in front-line treatment of COVID-19.

A top manufacturer and marketer of products for use in acute respiratory care, Fisher & Paykel has updated its previous expectations. In its H1 results announced in November 2020, it expected the hospitalisations requiring respiratory support across the globe to return to normal.

The new strains of viruses and COVID-19 showing no signs of retreating will further aid the company’s revenues. Based on these assumptions, the projections for full FY2021 stand at about NZ$1.72 billion and NPAT will be nearly NZ$400 million to 415 million.

The Company plans to start a unit in Mexico. The Company is continuing to increase its capacities of manufacturing products so that there is enough supply of respiratory equipment when the need arises.

The stock closed up by 1.10% at NZ$32.280 on 14 January 2021.

Related Read: Fisher & Paykel Healthcare (NZX:FPH) profit soars 86% amid strong products demand

Ryman Healthcare Limited

Ryman Healthcare (NZX:RYM) is a Company  into building integrated villages for the elderly. In its interim report of Half year results closed September 30, Ryman reported its progress despite COVID-19-induced restrictions. Its Reported (IFRS) profit went up by 12.8% while total assets went up by 14.9% over period ending September 2019.

In its Half Year Report 2020, the company stated owning and managing 39 retirement villages in New Zealand and Australia with 16 new villages in the pipeline.

It announced its robust plans for 2021. It stated that it plans to open six retirement villages in Victoria, where the building work is already on. Even though the projects got delayed due to Lockdowns 3 and 4, they will be opened shortly.

It proposes to focus on sanitising the villages more, improving the experience of living in these retirement villages through innovation, and working in the community in the current year.

The Company has plans to open two more villages in Victoria-Ocean grove and John Flynn at Burwood East.

The stock closed down by 1.99% at NZ$14.750 on 14 January 2021.

Related Read: Ryman Healthcare making progress on its plans of adding retirement villages

Oceania Healthcare Ltd

Oceania Healthcare Ltd (NZX:OCA) is New Zealand’s leading healthcare service provider. It offers a range of services from homes, hospitals, and independent living, to specialised care, for certain diseases.

Of late, the Company announced the issue of secured bonds at NZ$1 per bond. The total number of bonds issued amounted to NZ$125 million.  It is expected that the funds raised through these bonds will be used for the future growth of the Company. 

Leading banks and investment firms are the lead managers for this offer. Some of these include -- ANZ Bank New Zealand Ltd., Jarden Securities Limited, Westpac, and Craigs Investment Partners Limited.

Its results for the period to 30 November 2020 are also expected on January 22, 2021.

The stock closed 0.68% at NZ$1.450 on 14 January 2021.

Interesting Read: 6 NZX Stocks- RYM, OCA, ARV, SUM, FPH, GMT to look at for Retirement Planning

 


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