Revisiting growth. PCR test prices fell sharply (EGP450 vs. cEGP2k last year) and COVID-19 business is no longer margin-accretive. But regardless, the fast dissipation of COVID-19 (51% of 2021 revenue) was in our model. EGP weakness and the ensuing impact this will have on affordability, however, has us reducing our 12M TP by 38% to USD1.17/share, warranting a rating downgrade to Neutral. Pricing of medical services in Egypt are contextually high and cost pressures are seen as deterring traffic....
INTEGRATED DIAG (GB), a company active in the Health Care Providers industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 1 out of 4 stars, as well as its unchanged, defensive market behaviour. The title leverages a more favourable environment and raises its general evaluation to Slightly Positive. As of the analysis date March 1, 2022, the closing price was USD 1.22 and its potential w...
IDH stands out, on attractive yield. While Omicron has raised case count, COVID-19 testing prices in IDH’s core Egyptian market have come off after the Ministry of Healthy lowered pricing in Oct-21. IDH followed suit, reducing its prices by c25%. On conventional business though, it introduced the customary price hikes for walk-in (of 10%) and for corporate clients (case by case, of 5-7%), as of Jan-22. The net effect of these developments are broadly EBITDA-neutral, but as we rollover our DCF, o...
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....
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