Avior Capital Markets - Netcare Limited (10EE) Netcare | All about execution

Report

Avior Capital Markets

Steph Erasmus

Netcare | All about execution

Netcare delivered a credible set of results given persistent pressures from medical funders and affordability. In our view, Netcare is the purest play on the SA hospital industry, given the location of its beds (good), ability to drive occupancies and unguarded balance sheet. Netcare has recently been added as one of two anchor providers for the Government Employee Medical Scheme EVO plan in 2020, a key step to increasing occupancies.

03/12/2019 10 EN

Underlying

Netcare Limited

Netcare is engaged in provision of a range of general and other medical care services in South Africa and the U.K. Co operates its business within the following three segments: Hospital and Emergency Services, which include the operation of Co.'s private hospital network and emergency medical services; and Primary Care, which is engaged in the provision of primary healthcare services and managed care. Co.'s primary care segment provides medical and dental services through Medicross family medical and dental centers and Prime Cure clinics. Co.'s U.K. segment includes operation of private acute care hospitals in the U.K.

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ZAE000011953 Johannesburg Stock Exchange South Africa

Provider

Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.

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Analysts

Steph Erasmus

Other Reports on these Companies

TheScreener

NETCARE sees an upgrade to Positive due to a better fundamental star rating

The general evaluation of NETCARE (ZA), a company active in the Health Care Providers industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 3 out of 4 possible stars while its market behaviour can be considered as defensive. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Positive. As of the analysis date March 29, 2022, the closing price was ZAR 15.81 and its potential was estimated at ZAR 16.83.

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March 30, 2022 March 30, 2022 1 EN

Avior Capital Markets

Netcare | ESG analysis

We rank Netcare's (JSE: NTC) corporate governance as â€˜good' with a score of 3.16. Based on our ESG risk framework, NTC's ESG risk exposure is moderate, with a residual risk rating of 3.2 out of 5. We commend the Group's willingness to engage in ESG topics. The Group's Board comprises eight non-executive members, of which three have served over nine years. NTC's board is 80% independent (Avior: 50%). We consider Board members with a tenure of over nine years to be non-independent. We support variable compensation comprising 42% and 35% of NTC's CEO and CFO total FY '19 remuneration, respect...

January 21, 2020 January 21, 2020 16 EN

Tiger Brands | ESG | Pressed to execute

TBS receives a corporate governance score of 3.37 out of 5 (FY '18: 3.42) and is rated as â€˜good'. TBS receives an ESG risk score of 2.6 (FY '18: 2.6) which we consider moderate. As in FY '18, there were various changes to the Board which raises corporate governance concerns surrounding succession planning and the execution of strategies. Post year-end, L Mac Dougall retired as CEO of the Group. N Doyle has become the new CEO of the Group as of 1 Feb '20. We note the corporate governance concerns around the appointment of N Doyle given that he left the Group at an important juncture in FY...

February 7, 2020 February 7, 2020 15 EN

Ayan Ghosh

Ayan Ghosh

SA Investment Strategy | Review of January 2020 for SA investors: Coronavirus weighs on the ZAR

From an SA asset-allocation perspective, SA Bonds (ALBI +1.2%) outperformed cash (STEFI +0.6%) and equities (Capped SWIX -2.6%) in Jan â€˜20. The ZAR was the worst performing EM currency in Jan â€˜20, depreciating by 6.8% against the USD, as EM risk appetite declined, with the Coronavirus spreading further than the Sars virus, which began in 2002, likely to hit global growth. Our discussions with various corporates in China suggest that the Coronavirus will peak over the coming weeks and could take until Mar '20 to resolve. In USDs, MSCI SA (-8.8%) underperformed MSCI EM (-4.7%) in 2020, as ...

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Harry Botha

Harry Botha

SA Banks | Low credit risk in commercial property | Time to buy SA banks

Challenging SA economic conditions bring SA REITs credit health and banks' lending to the sector into the spotlight. Our analysis in this report provides greater detail on SA banks' exposure to commercial property and listed REITs. Our stress tests highlight that SA banks' lending to listed REITs (exposed to SA or offshore operations) has been conservative to date. REITs' equity capital and diversified portfolios support the property companies' credit health. While SA banks' near-term earnings growth prospects are geared to SA economic conditions, we highlight that valuations are undemandin...

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Netcare | All about execution

NETCARE sees an upgrade to Positive due to a better fundamental star rating

Netcare | ESG analysis

Tiger Brands | ESG | Pressed to execute

SA Investment Strategy | Review of January 2020 for SA investors: Coronavirus weighs on the ZAR

SA Banks | Low credit risk in commercial property | Time to buy SA banks

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