WEAK QUARTERLY REVENUE GROWTH, DUE TO PCR PRICE DECLINES SPMD recorded revenues of EGP69 million in 4Q21 (+13.2% YoY, -43% QoQ), mainly driven by a significant drop in lab revenues (-44% QoQ) on the back of lower covid revenues (drop in prices and volumes) along with weak seasonality. Lab revenues recorded EGP65 million (+10.8% YoY, -44.0% QoQ, 93.8% of total revenues). Polyclinics recorded revenues of EGP4.3 million (67.4% YoY, -21.4% QoQ). On an annual basis, revenues recorded EGP365 millio...
ANNUAL TOP-LINE SURGES ON THE BACK OF LABS’ STRONG PERFORMANCE SPMD reported 9M21 results. Top-line surged by 162% YoY, registering EGP296 million. Labs retained the lion’s share with respect to revenue contribution, generating EGP283 million (95.4% of top-line) in 9M21, a jump of 170% YoY, out of which EGP51 million (18%) are Covid-related revenues. Polyclinic revenues recorded EGP13.6 million in 9M21, climbing by 86.9% YoY and contributing 4.6% to SPMD’s top-line. On a quarterly basis, top...
We update our valuation for SPMD with a FV of EGP2.27/Share, down from EGP3.50/Share, and maintain our Overweight recommendation, on an upside of 25.3%. The main updates to our valuation are: • Incorporating 2026 in our DCF valuation. • Factoring in Libya’s contracts (the EGP965 million contract in addition to MEDAF’s EGP336 million contract) in our 2022 and 2023 estimates. • Consolidating the expected revenues of Covid-19 Drive-Throughs (formerly managed by Prime Speed) in SPMD’s financial s...
REVENUES SURGE ANNUALLY ON THE BACK OF LAB EXPANSIONS AND A WEAK BASE EFFECT SPMD reported 1H21 results. Top-line surged by 196% YoY to register EGP175 million. Labs retained the lion’s share with respect to revenue contribution, generating EGP167 million (95.4% of top-line) in 1H21, a jump of 211% YoY, out of which EGP29 million are Covid-related revenues. Polyclinic revenues recorded EGP8.1 million in 1H21, growing by 83.6% YoY and contributing 4.6% to SPMD’s top-line. On a quarterly basis,...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Raise TP by c8% to EGP2.50/share. We widen 2021-26e EBITDA by 12%, on: i) an increased number of tests, on two new government-level contracts, ii) a 75-bed expansion at Obour Hospital to 140 beds, and iii) lower earnings from Nile Scan, on slower-than-anticipated progress. SPMD currently trades on P/Es of 15x for 2022e and 11x for 2023e (Egypt peers at 14x and 12x, respectively), warranting our Neutral call, ahead of the imminent Prime Speed acquisition, which we see as 28% dilutive. Key downsi...
TOP AND BOTTOM LINES STRENGTHEN ANNUALLY AND SEQUENTIALLY SPMD reported 1Q21 revenues of EGP65 million, representing a QoQ growth of 7.2% and a YoY surge of 160%, which came slightly higher than our estimate of EGP62 million. Labs remain SPMD’s greatest revenue contributor (95.6% of 1Q21 top-line), generating revenues of EGP62.5 million. Bottom-line recorded EGP41 million (+35.8% QoQ, +470% YoY), out of which EGP18 million were contributed by Prime Speed. HEALTHY BOTTOM-LINE GROWTH, DESPITE ...
We updated our valuation for SPMD, with a FV of EGP3.50/share (up from EGP2.80/share) and maintain our Overweight recommendation, on the back of strong growth potential from new ventures and further expansion plans set by management. Our new FV accounts for SPMD’s recent plans and developments, as well as some changes in management’s guidance regarding the company’s future financial performance. SPMD TO CONSOLIDATE PRIME SPEED: INVESTIGATING TWO POSSIBLE SCENARIOS SCENARIO 1: ACCOUNTING FOR ...
LABS DRIVE TOP-LINE GROWTH SEQUENTIALLY AND ANNUALLY SPMD reported 4Q20 revenues of EGP61 million, up 13.4% QoQ and up 168% YoY. Labs continue to drive SPMD’s top-line growth (c. 96% of 4Q20 top-line), generating revenues of EGP58 million, which represent a QoQ growth of 14.7% and a YoY surge of 206%. On annual basis, top-line recorded EGP174 million (+107% YoY), where labs’ revenues jumped to EGP163 million in 2020 (c. 94% of 2020 top-line), reflecting a YoY surge of 137%. PRIME SPEED BOOSTS...
We initiate coverage on SPMD with an overweight recommendation and a FV of EG2.80/share, implying an upside of 20%. SPMD is a rapidly growing private diagnostics provider that owns the third largest lab chain in Egypt, namely “Speed Labs”. The company was established at the end of 2015 and started operations with 4 labs in April 2016. Today, on the back of an aggressive growth strategy, SPMD possesses 98 lab branches across 15 Egyptian governorates (out of which 75 branches are operative up t...
Faster-than-expected growth warrants valuation upgrade. We raise our 12M TP by 105% to EGP2.32/share, to primarily reflect our 2021-26e estimates changes as follows: i) +7pp and +33pp higher revenue/test and number of tests, respectively, on a higher-than-anticipated Speed Labs’ traffic ramp-up, improving brand recognition, ii) incorporation of SPMD’s 39% stake in each of the newly established lab management company and radiology service provider, Misr Labs and Nile Scan, respectively, and iii)...
FINANCIAL RESULTS HIGHLIGHTS: TOP AND BOTTOM LINES CONTINUE TO SURGE * Net income for 2020 is expected to record at least EGP75 million (+339% YoY). * Revenues are estimated to record EGP178 million in 2020 (+112% YoY), out of which EGP166 million would be contributed by labs, where Covid-related revenues would account for EGP35 million of lab revenues. Polyclinics should contribute EGP10-11 million to total revenues in 2020. UPDATES ON LABS * SPMD added around 32 Speed Lab branch...
3Q20 FINANCIAL RESULTS HIGHLIGHTS: SURGE IN REVENUES AND PROFITABILITY Net profit jumped to EGP27.8 million, up from EGP14.1 million in 2Q20 (+97.4% QoQ) and EGP7.1 million in 1Q20. The surge in bottom-line is mainly attributed to the remarkable growth of lab revenues. Lab revenues recorded EGP51 million (+59.4% QoQ), out of which EGP18 million were generated from COVID-related tests, while EGP33 million are accounted for by regular blood tests (+50% QoQ). REVENUES AND PROFITABILITY GUIDANCE ...
Healthcare coverage 3Q20e earnings set to rebound; Pharma players to lag. We look for a q-o-q rebound in revenues and earnings for our healthcare coverage, chiefly underpinned by a hike in traffic, following the ease of mobility restrictions, and a slowdown in COVID-19 cases in 3Q20. Pent-up demand is seen as coming more in favour of healthcare services providers, with earnings growing on average by 11% (excluding SPMD). Conversely, pharma players are seen delivering muted earnings growth (exclu...
Story and establishment * Speed Medical — a private diagnostics provider, led by Mr. Mahmoud Lasheen, Chief Executive Officer and a former board member of CLHO — was established at the end of 2015 and started operations with 4 operative labs in April 2016, reaching now more than 70 lab branches in 8 governorates. * The company was called Speed Lab Medical at the beginning, before management decided to expand aggressively by increasing the number of operative labs and entering into new ...
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