Are there any Rock-solid NZX-listed Healthcare Stocks? A lens on AFT, FPH, GXH

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Are there any Rock-solid NZX-listed Healthcare Stocks? A lens on AFT, FPH, GXH

 Are there any Rock-solid NZX-listed Healthcare Stocks? A lens on AFT, FPH, GXH

Summary

  • The healthcare industry, along with the ICT industry, has been a bright spot in an otherwise challenging environment.
  • AFT Pharmaceuticals’ Maxigesic IV® licensed in six new European nations; regulatory approvals are anticipated in upcoming months with sales projected in CY21.
  • In FY20, AFT’s revenue increased by 24% to NZ$105.6 million with strong growth across all markets.
  • Fisher & Paykel’s operating revenue surged by 18% in FY2020.
  • Green Cross Health recorded an operating profit of ~NZ$31.0 million, moving up 5.4% during FY2020.

The healthcare sector has been resilient in 2020 and has grabbed the opportunities that have come its way amidst the pandemic. Healthcare, along with the ICT industry, has probably been the saving grace for an otherwise struggling economy.

The sector, considered as a defensive one, has been actively involved in R&D activities and is coming up with novel technologies, to prevent and treat COVID-19. At the moment, there are several opportunities in the healthcare sector, and hence many healthcare players are gaining attention.

GOOD READ: Healthcare Sector in New Zealand with Three Large Health Care Stocks

From the ever-growing need of getting respiratory equipment, other protective gear (such as mask, PPE kits, sanitizers, etc.) to providing daily medical needs, healthcare sector companies are gaining attention during this pandemic.

In the meantime, NZX-listed companies are updating the market with their yearly reports. In this article, we are highlighting three NZX-listed healthcare stock which reported sturdy results in the financial year 2020.

DO READ: Healthcare Sector Defying the Norms

Let us delve deep and discuss three potentially hot NZX-listed healthcare stocks - AFT, FPH and GXH.

AFT Pharmaceuticals’ Maxigesic IV® licensed in six new countries in Europe

Dual-listed, on both NZX and ASX, growing multinational healthcare firm AFT Pharmaceuticals Limited (NZX:AFT) is engaged in manufacturing and selling of pharma products. The products include the ones developed by the Company and the ones in-licensed from 3rd parties. AFT’s products cover all key pharmaceutical distribution channels, including over-the-counter (OTC), prescription and hospital.

On 30 July 2020, AFT Pharmaceuticals disclosed that the Company had signed an exclusive Maxigesic IV® licensing as well as supply agreement for Cyprus, the Czech Republic, Bulgaria, Romania, Slovakia, and Hungary with a combined population of nearly 53 million.

The agreement is signed with Medochemie, a Cyprus-based multinational pharmaceutical Company, that has already signed a licensing deal for Maxigesic IV® in Ukraine along with the nine countries of the Commonwealth of Independent States (CIS) earlier this year.

AFT Pharmaceutical’s Managing Director Dr Hartley Atkinson stated-

The regulatory approvals of Maxigesic IV® in the six European nations covered by this agreement are anticipated to complete in the upcoming few months, with sales projected in CY21.

About Maxigesic IV®

Maxigesic IV® is an infusion of Paracetamol (1000mg) and Ibuprofen (300mg) developed as a line extension to Maxigesic tablets, for its post-operative use in hospitals when patients are not able to take medicine orally.

A major Phase 3 clinical study conducted in the US found that Maxigesic IV provided substantially better pain relief as compared to either ibuprofen IV or paracetamol (acetaminophen) IV alone in similar doses.

After the registration of Maxigesic IV® in New Zealand and Australia in mid-2019, the Company has now licensed the medication in over 90 nations. Meanwhile, Maxigesic tablet form has been licensed in over 125 countries.

FY2020 Results – A Quick Glance

On 20 May 2020, AFT announced its FY20 results (period ended 31 March 2020), emphasizing a robust increase in revenue as well as earnings driven by impressive performance in all the key markets.

AFT revenue climbed 24% to NZ$105.6 million with strong progress across all markets and all sales channels. Moreover, revenue in Australia rose ~22%, while in New Zealand and the Asian region, revenue moved up by 12% and 130%, respectively.

ALSO READ: Strong Lift in Revenue and Earnings for AFT Pharmaceuticals in FY20

Stock Information: On 6 August 2020, AFT stock quoted at NZ$4.660 going up by 1.30% (at 4:18 PM NZST). The market cap of AFT stood at NZ$483.25 million. The stock experienced a 52.65% share price rise in the last 52 weeks.

Fisher & Paykel’s Operating Revenue Rose by 18% in FY20

Fisher & Paykel Healthcare Corporation Limited (ASX:FPH) is employed in the designing, production as well as the marketing of products & systems used in the acute care, respiratory care, surgery and for the treatment of OSA (obstructive sleep apnea).

Fisher & Paykel declared its results for FY20 (year ended 31 March 2020) on 29 June 2020. During the year, the products of Fisher & Paykel were used by ~16 million patients, involving many patients suffering from COVID-19.

  • Operating revenue in FY20 was reported at ~NZ$1.26 billion, up by 18% on pcp backed by robust customer requirement for Optiflow and AIRVO systems.
  • Fisher & Paykel recorded an NPAT of ~NZ$287.3 million climbing 37% as compared to FY 2019.

Source: Company Presentation

For the fiscal year 2021, FPH anticipates reporting operating revenue of approximately NZ$1.48 billion and NPAT in the range of NZ$325-NZ$340 million. The capital expenditure is expected to be nearly NZ$160 million.

READ MORE: FPH continues delivering stupendous returns; stock performance aided by impressive FY2020 results

Stock Information: On 6 August 2020, FPH traded at NZ$36.400, down 1.49% (at 4:21 PM NZST) with a market cap of NZ$20.93 billion. Fisher & Paykel experienced a 136.18% share price increase in the last 52 weeks.

GOOD READ: NZ Market Darling Fisher & Paykel Demonstrates Value and Growth

Green Cross Health’s Operating Profit up 5.4% in FY20

NZX-listed primary healthcare provider Green Cross Health Limited (NZX:GXH) provides its services to communities of New Zealand. Green Cross Health offers support, care along with advice to its communities through medical centres, pharmacies, and community health services.

On 24 July 2020, the Company provided its annual report for the year ended 31 March 2020.

  • During the year, Green Cross Health recorded an operating profit of approximately NZ$31.0 million up by 5.4%.
  • The Company reported revenue of approximately NZ$569 million in the financial year 2020.
  • The balance sheet of GXH continues to have strong liquidity, which will let the Company traverse the upcoming period, with challenges stemming from the COVID-19 turmoil.
  • The Company is well-placed to consider acquisitions over the medium term selectively.
  • Medical Revenue of GXH climbed by 8.5% to NZ$76.5 million, and operating profit increased by 81.1% to NZ$8.0 million, indicating organic revenue growth.
  • Pharmacy division revenue dwindled by 1.1% and operating profit down NZ$4.8 million to NZ$22.5 million.
  • The Community Health division of GXH reported a robust upsurge in operating profit to NZ$2.5 million, an increase of NZ$2.4 million over the pcp.

Stock Information: On 6 August 2020, GXH stock was trading at NZ$1.050 (at 4:20 PM AEST), in line with the previous close. The market cap of the stock noted at NZ$150.3 million.

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