What are top 3 NZX healthcare stocks of 2021?

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What are top 3 NZX healthcare stocks of 2021?

 What are top 3 NZX healthcare stocks of 2021?
Image source: Andrei_R, Shutterstock

Highlights

  • New Zealand has one of the best healthcare systems in the world.
  • Arvida Group announced a 30% rise in its underlying profit of $26.6 million for the 6 months ended 30 September 2021.
  • Oceania continued to perform well throughout H1 FY22 despite COVID-19 disruptions.

New Zealand has one of the best healthcare systems in the world. The NZ government controls the public healthcare system from its budget. Healthcare is funded via taxes and by the national government.

The country has many companies dealing in pharma verticals, medical devices and the aged care sector within the healthcare space.

Let’s look at the performance of the top 3 NZX healthcare stocks of 2021.

3 NZX healthcare stocks and their details

Image source: © 2021 Kalkine Media®, Data source- Refinitiv

Arvida Group Limited (NZX:ARV)

New Zealand’s largest aged care provider Arvida Group announced a 30% rise in its underlying profit of $26.6 million for the 6 months ended 30 September 2021 despite the interruption of NZ going into a lockdown.

DO READ: Arvida (NZX:ARV) Did the Company report solid 1H22?

It delivered 68 new homes across 7 villages and increased the total number of units and beds by 24% to 5,439 in H1 FY22. The Group confirmed this month that the sale of its 3 retirement villages situated in Rangiora had been settled.

ARV expects high employee costs will be a challenge for the sector in H2 with a restricted labour market and increasing inequality in nurse pay ongoing.

ARV ended the day 1.03% in green to close at $1.97.

Summerset Group Holdings Limited (NZX:SUMASX:SNZ)

An NZ retirement village operator and developer, Summerset Group, saw a significant increase in resale and new sales in Q3 2021, with over 744 transactions for the nine months ended September 2021.

ALSO READ: Summerset (NZX:SUM): Is it the best aged care provider in New Zealand?

The Group pre-sold all of its independent living units at its planned Mt Denby retirement town in Whangarei, which were scheduled to be delivered over the next six months.

SUM ended the day 1.56% in green to close at $13.68. 

Oceania Healthcare Limited (NZX:OCAASX:OCA)

Oceania announced a 19.7% rise in an underlying EBITDA of $35.6 million in 1H FY22, with its sales volumes being 10% ahead of the 6 months ended 30 September 2021. Its total assets soared by roughly 10% since March 2021.

RELATED READ: How are NZX retirement villages stocks doing in December 2021?

OCA completed 49 apartments at Eden in April and 8 villas at Gracelands in September this year. The Group paid an interim dividend of 2.1cps on 20 December.

Oceania continued to perform well throughout H1 FY22 despite COVID-19 disruptions.

OCA ended the day 0.75% in green to close at $1.34.

Bottom Line

Demand for retirement village operators is set to rise in the future as more Kiwis get older and the increased comfort that the elder generation gets by living in retirement villages. 

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)

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