- AFT Pharmaceuticals signed an exclusive Maxigesic IV® licensing as well as supply agreement with Medochemie for six European countries.
- EBOS Group’s revenue rose by 26.5%, and underlying EBITDA increased by 13.4% during FY20.
- Fisher & Paykel has commenced planning for its 3rd manufacturing facility in Tijuana,
- Summerset Group’s underlying profit was reported at NZ$45.1 million, down 6% for the first half of 2020.
The healthcare shares are generally considered as defensive ones, and at this time of turmoil, healthcare sector companies are more involved in R&D activities and coming up with technologies to prevent and treat COVID-19. At present, there are numerous opportunities in the healthcare sector, and hence several players in this industry are gaining investors’ attention this reporting season.
Here, we will discuss four NZX-listed healthcare companies- AFT, EBOS, FPH and SUM.
AFT Pharmaceuticals Limited (NZX:AFT)
Listed on both NZX & ASX, AFT Pharmaceuticals Limited is engaged in the production of a wide variety of products; both developed the Company and in-licensed from 3rd parties. Products of AFT Pharmaceuticals cover all key pharmaceutical distribution channels including over-the-counter (OTC), prescription and hospital.
Maxigesic IV® Licensed in 6-new European Countries
On 30 July 2020, AFT Pharmaceuticals updated the market that it had signed an exclusive Maxigesic IV® licensing as well as supply agreement for six European countries- Cyprus, the Czech Republic, Bulgaria, Romania, Slovakia, and Hungary with a combined population of almost 53 million.
AFT Pharmaceuticals signed the agreement with a Cyprus-based multinational pharmaceutical company- Medochemie, who has already signed a licensing deal for Maxigesic IV® in Ukraine along with the nine nations of the Commonwealth of Independent States earlier this year.
Dr Hartley Atkinson, Managing Director AFT Pharmaceutical 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 than projected in CY21.
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On 21 August 2020, AFT share price closed at NZ$5.0000 in-line with its previous close. In 52 weeks, the share price rose by 78.57%.
EBOS Group Limited (NZX:EBO)
EBOS Group Limited is listed on both NZX & ASX and is the largest & most diversified marketer, wholesaler, and distributor of healthcare and pharmaceutical products across Australasia.
On 20 August 2020, EBOS Group disclosed its FY20 (year ended 30 June 2020) results, the Company posted record results for the period and substantial increase in earnings.
- During FY20, the revenue of EBOS reported at ~A$8.8 billion increased by 26.5%.
- The underlying earnings before interest, depreciation and amortisation (EBITDA) recorded at ~A$296.6 million up by 13.4% and underlying NPAT increased by 16.5% to A$168.3 million.
- Excellent operating cash flow of A$229.2 million reported during the period as a consequence of the upsurge in earnings combined with the industry-leading the management of working capital of the Group.
- The Group has a robust balance sheet, with net debt/EBITDA of 1.11x, bolstered through the latest refinancing programs which increased the weighted average maturity of debt facilities of the Group to 2.5 years.
- Both segments of EBOS Group healthcare and animal care performed excellently and exhibited the strength of their market-leading positions.
- The Group declared total dividends of 77.5 NZ cents for FY20 representing growth of ~8.4%.
On 21 August 2020, EBO share price was noted at NZ$22.380, up by 1.27%, with a market capitalisation of NZ$3.645 billion.
Fisher & Paykel Healthcare Corporation Limited (NZX:FPH)
Fisher & Paykel Healthcare Corporation Limited 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 initiates planning for new manufacturing facility
On 21 August 2020, Fisher & Paykel announced at its annual shareholders’ meeting that the Company has commenced planning for its 3rd manufacturing facility in Tijuana, Mexico, which is to be commissioned within the upcoming two years.
Lewis Gradon, Managing Director and CEO Fisher & Paykel Healthcare stated-
The Company completed its 2nd Mexico facility in January 2019 and its 4th New Zealand facility, the Daniell Building, in May 2020.
Fisher & Paykel also updated its annual shareholders’ meeting presentation on 21 August 2020, highlighting the financials for FY20 and FY21 trading update.
- During FY20, the revenue of Fisher & Paykel rose by 14% (at constant currency) to NZ$1.26 billion.
- The NPAT was reported at NZ$287.3 million up by 37%.
FY21 Trading Update-
During the initial four months of the FY21, strong demand for the hospital respiratory care products of Fisher & Paykel. Revenue from the hospital product group rose 91% and homecare product group revenue increased by 5%.
Fisher & Paykel also provided guidance for FY21-
Operating revenue in FY21 anticipated at NZ$1.61 billion and NPAT expected to be in the range of NZ$365-NZ$385 million.
On 21 August 2020, FPH share price last quoted at NZ$35.300 up by 1.55% from its last close. The share price of FPH rose by 123.14% in the previous 52 weeks.
Summerset Group Holdings Limited (NZX:SUM)
Dual-listed on ASX and NZX, Summerset Group Holdings Limited is one of the leading operators and developers of retirement villages in New Zealand, with 31 villages completed or in development across the country. The Group provides several living options along with care services to over 5.7k residents.
On 17 August 2020, Summerset Group updated the market with its half-year results of FY20 (ended 30 June 2020). The highlights are-
- For the first half of 2020, the underlying profit was reported at NZ$45.1 million, down 6% on pcp.
- The Group reported (IFRS) profit after tax of almost NZ$1.0 million.
- Summerset has total assets of nearly NZ$3.4 billion, increase by 13% on the assets of the first half of 2019.
- During the period, the Group delivered almost 139 new retirement units, 43 care beds and expect a build rate of around 300-350 retirement units in the fiscal year 2020.
- Total 264 total sales of occupation rights.
The Group mentioned that the reduction in IFRS profit after tax compared to previous periods was mainly triggered by a negative fair value movement in investment property.
After considering recent COVID-19 developments, Summerset Group declared an unimputed interim dividend of NZ6.0 cents per share.
Julian Cook, CEO Summerset Group, stated-
On 21 August 2020, SUM share price was down 1.21% at NZ$8.140. Summerset share price rose by 37.22% in the last 52 weeks.
On 21 August 2020, SUM share price last quoted NZ$8.140 down by 1.21% from its last close. In 52 weeks share price of Summerset Group rose by 37.22%