Does New Zealand have a good healthcare system? What are the best NZX healthcare stocks for investment?

Summary

  • What is the healthcare Industry of New Zealand like?
  • What provisions does the new Budget hold for the healthcare sector?
  • What stocks could be valuable investments?

The healthcare industry of New Zealand is diverse and has several bifurcations. Right from medical cannabis producers to medical equipment producers, to aged care homes, there are different kinds of healthcare verticals in the country that collectively work to help people in different ways.

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Budget 2021 healthcare provisions

The Budget 2021 gave a significant boost to the healthcare sector. It also revealed points regarding how the government has included healthcare diligently to ensure that the people of the country are taken care of the best way, without having to spend huge amounts of money.

For this reason, exactly there has been the allocation of a sum of NZ$486M to ensure that changes are made in the current health policies of the country, so much so that each of its citizens are better equipped to deal with health problems in the future, whether it comes to cover their hospital expenses, medicines, etc.

Further, the Maori Health Authority is a major part of the Government’s budget plans for health reforms. The Government is trying to make available more medicine and equipment to people on discounted prices, shedding light on the effort being put to develop the health industry of the country further.

It can additionally be witnessed that the healthcare system of the country is sound and exemplary through the fact that COVID-19 virus was tackled by New Zealand before most countries in the world came into action.

Let’s discuss some of the top NZX-listed companies which serve in different genres of healthcare. Analyse all the pointers to figure out if you may want to put your money in them.

Fisher and Paykel (NZX: FPH)

Offering the manufacture of different kind of medical equipment for both home and hospital use, Fisher and Paykel is one of the biggest names in the business. It provides critical healthcare equipment such as myAIRVO2 besides other respiratory aids for infants as well as adults. In Its most recent NZX announcement, the company revealed that its annual meeting should be held virtually this year considering the norms of social distancing. The meeting is to be held on 18 August 2021 and the last date for filing director’s nominations is 21 June 2021.

On June 9, Fisher and Paykel Healthcare Corporation Limited traded at NZ$29.590, up by 1.51% at the time of writing.

Image Source: Copyright © 2021 Kalkine Media

Ryman Healthcare (NZX:RYM)

One of the top listed healthcare companies in the country, Ryman Healthcare, deals in care homes for the elderly throughout New Zealand and Australia. There are 36 villages that function under its care. In the recently updated full-year results by the Company, it was found that the profit earned by it this year was NZ$224.4M, total assets were recorded at NZ$9.17B. It was further added that the growth rate for the demand of aged healthcare has been consistent in both jurisdictions. The Company offered a final dividend of 13.6 cents to the shareholders.

On June 9, Ryman Healthcare limited traded at NZ$12.610, up by 1.59% at the time of writing.

AFT Pharmaceuticals Limited (NZX:AFT)

As the name suggests, this Company is all about the manufacture and distribution of different types of pharmaceuticals. It produces everything from over-the-counter prescription drugs to specific hospital use medicines, which are then distributed through their wide network of distribution to regions such as South East Asia and countries like Australia and New Zealand. According to the latest NZX announcement, the total revenue earned in FY21 is NZ$113.1M with the operating profit of NZ$10.8M, while the NPAT was NZ$7.8M.

On June 9, AFT Pharmaceuticals limited traded at NZ$4.680, down by 0.43% at the time of writing.

Cannasouth Limited (NZX:CBD)

A different kind of healthcare brand, one that uses Cannabis to create different types of products, which provide pain relief and aid in many other health conditions, Cannasouth Limited is one of the primary medical cannabis-related producers in the country. According to the latest Medical Cannabis Industry update, by the year 2028, the medical cannabis industry is expected to be of value US$13.4B and a CAGR expansion of 21.2% is expected.

On June 9, Cannasouth Limited traded at NZ$0.490, down by 0.01% at the time of writing.

Blis Technologies (NZX:BLT)

The creators of the first-ever orally consumable probiotics in the world, Blis Technologies is known for its different applications in health and skin care. Its two mainly marketed strains are BLISK12TM and BLISM18TM. In the recent announcement on the NZX, the Company has set 21 July 2021 as the date for its annual meeting. The last date for nominations for director is 18 June 2021. In its FY21 financial results, the Company announced a revenue of NZ$10.6M, NPAT of NZ$0.6M and EBITDA of NZ$1.0M.

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