reports
- Talha Nazr
Saudi Healthcare Sector update: NHIC to drive growth
We maintain our long-term positive outlook on the Saudi Healthcare sector. The introduction of NHIC is a key catalyst for the sector which is expected to 1) increase the insurance penetration by 3x and 2) improve the receivables cycle. We expect the sector's bed capacity to record a CAGR of 10% during 2022-25f, while revenue and net income are forecasted to grow at a CAGR of 13.7% and 21.7%, respectively. We maintain our neutral rating across our coverage, as we believe the current valuations...
- Talha Nazr
Dr Sulaiman Al Habib: Q4 22 Result Analysis | Strong topline offset by...
HMG reported an inline set of Q4 22 results, with a net income of SAR441.5mn, up 15.0% yoy (+5.0% qoq). This is in line with the SNB Capital and consensus estimates of SAR441.2mn, and SAR443.5mn, respectively. Revenues grew by 14.5% yoy (+9.8% qoq) to SAR2.25bn, higher than our estimates of SAR2.1bn. We believe the variance is due to higher inpatients and improving efficiency. However, the top line growth was offset by higher expenses. Opex to sales increased to 13.7% in Q4 22 vs our estimate...
- Talha Nazr
Dr Sulaiman Al Habib: Q3 22 Results Analysis | Higher-than-expected re...
Sulaiman Al-Habib Group (HMG) reported a mix set of Q3 22 results, with a net income of SAR421mn, up 20.7% yoy (+5.6% qoq). This is higher than the SNB Capital and consensus estimates of SAR405mn, and SAR403mn, respectively. Revenues grew by 11.8% yoy (+1.9% qoq) to SAR2.05bn, but were marginally lower than our estimates. Operating expense were significantly higher with opex-to-sales increasing to 12.0% in Q3 22 vs our estimate of 11.0%. The impact of higher operating expense was more than of...
- Talha Nazr
Dr Sulaiman Al Habib: Earnings Call Summary – Q2 22
Below are the key highlights of Dr. Sulaiman Al Habib Medical Group's (HMG) Q2 22 earnings call. REVENUES * In Q2 22, revenues grew by 15.0% yoy (+1.2% qoq) to SAR2.01bn, driven by the healthy growth across the business segments. * Hospitals revenue increased by 12.2% yoy to SAR1.53bn in Q2 22, pharma grew by 29.0% yoy to SAR407mn, and solutions by 5.9% on yoy basis to SAR73.2mn. * Hospitals remains the major contributor at 76.2% in Q2 22. However, the contribution from pharmacies ...
- Talha Nazr
Saudi Healthcare Sector | Expansions and NHIC to support the sector
We remain positive on the Saudi healthcare sector driven by the Healthcare Transformation Program (HSTP). The establishment of the Healthcare Holding Company (HHC) and National Health Insurance Company (NHIC) are among the first steps taken by the MoH to achieve its long-term goal of restructuring the sector. We believe the establishment of NHIC is expected to lead to higher patient inflows for the private sector and potentially reduce the receivables cycle. For stocks under coverage, we beli...
A double requalification allows DR SULAIMAN AL-HABIB to improve to Sli...
DR SULAIMAN AL-HABIB (SA), a company active in the Health Care Providers industry, has received a double requalification by the independent financial analyst theScreener. Its fundamental valuation is now 3 out of 4 stars while its market behaviour can be considered as defensive. theScreener believes that the gain of a star(s) and an improvement in the market risk perception allows upgrading the general evaluation to Slightly Positive. As of the analysis date March 11, 2022, the closing price was...
- Nauman Khan
Dr Sulaiman Al Habib: Strong results on higher top-line growth
Dr. Sulaiman Al-Habib Medical Group (HMG) reported a strong set of Q1 21 results, with a net income of SAR319mn (up 29.4% yoy, flat qoq). This is higher than the NCBC and consensus estimates of SAR274mn and SAR300mn, respectively. The positive variance was primarily on account of higher than expected revenues of SAR1.70bn, up 26.2% yoy and compared to our estimates of SAR1.52bn. We believe higher than expected revenues were due to higher inpatient occupancy. Based on our last published update...
- Nauman Khan
Dr Sulaiman Al Habib: Growth across segments drives higher net income
Dr. Sulaiman Habib Medical Group (HMG) reported a strong set of Q4 20 results, with a net income of SAR318mn (up +17.6% yoy, +6.4% qoq). This is higher than the NCBC and consensus estimates of SAR279mn and SAR302mn, respectively. The deviation was primarily on account of higher than expected revenues of SAR1.62bn, up +20.4% yoy (+4.2% qoq), vs our estimates of SAR1.55bn, which we believe is due to increased inpatient occupancy. Revenues grew +20.4% yoy (+4.2% qoq) to SAR1.69bn, higher than ou...
- Nauman Khan
Dr Sulaiman Al Habib: Strong growth prospects priced in
We downgrade Sulaiman Al Habib (HMG) from Overweight to Neutral with a revised PT of SAR94.4. COVID-19 impact was significantly lower than our initial assessment, with operations normalizing in Q3 20 (both in terms of patient volumes and revenue mix). Hence, we expect net income to grow by 8.8% yoy to SAR947mn in 2020f. Strong expansion pipeline (+70% by 2024f), improved efficiency and growth of HMG solutions are the key drivers going forward. The stock trades at 2021f of 32.4x, which we bel...
- Nauman Khan
Dr Sulaiman Al Habib: Inpatient occupancy drives earnings growth
Sulaiman Al Habib (HMG) reported a net income of SAR299mn, up +50.9% yoy (+55.4% qoq). This is higher than NCBC and consensus estimates of SAR242mn and SAR237mn, respectively. The growth is driven by higher revenue across all segments and increased inpatient occupancy rates. We are overweight on HMG with a PT of SAR70.4. Since our initiation report published in April 2020, the stock has increased by 76.4% and exceeded our PT. We await for Q3 20 financials to update our view and estimates on ...
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