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....
We reiterate our AUD 3.50 per share fair value estimate for Primary Health Care as we transition coverage to a new analyst. Our no-moat and medium fair value uncertainty ratings are unchanged. Shares in Primary Healthy Care currently trade at a meaningful discount to our fair value estimate. We continue to project earnings per share growth of around 7% a year on average during the next five years. The government is increasingly focusing on preventative health, which typically results in superio...
Primary Health Care provides investors with exposure to a portfolio of medical businesses with reliable earning streams. We expect the latter to grow solidly over the medium and longer term as the firm fills excess capacity and benefits from rising demand from an ageing population. Earnings should be relatively insulated from cuts to public healthcare budgets, as the effective delivery of diagnostic services helps to constrain healthcare costs by enabling early treatment of disease. The ageing p...
We reiterate our AUD 3.50 per share fair value estimate for Primary Health Care as we transition coverage to a new analyst. Our no-moat and medium fair value uncertainty ratings are unchanged. Shares in Primary Healthy Care currently trade at a meaningful discount to our fair value estimate. We continue to project earnings per share growth of around 7% a year on average during the next five years. The government is increasingly focusing on preventative health, which typically results in superior...
No-moat Primary Health Care met our expectations following recently issued guidance. However, the firm surprised by announcing a AUD 250 million capital raising to fund the acquisition of a day-hospital network, along with new initiatives aimed at improving operational capacity in existing medical centres and upgrading pathology infrastructure over a five year horizon. The capital raising is a 1-for-5.21 rights issue at AUD 2.50 per share. We assume the hospital purchase component is around AUD ...
The general evaluation of PRIMARY HEALTH CARE LTD. (AU), 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 moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date September 28, 2018, the...
Reporting Season Performance. Our recently published Earnings Season Wrap highlighted concerns about the number of downgrades to FY19 earnings during the reporting period, particularly in Mining, Financials and Consumer Discretionary. Taking a Leap of Faith. ALU, WEB, SKI, SGP, CHC and SWM have seen not only strong increases in consensus EPS growth forecasts, but the strong net number of upgrades add a further layer of conviction to the outlook for these stocks. Clearing the Decks with C...
FY18 reporting season was solid with 56% of stocks reporting either better-than-expected or in line underlying earnings. Growth has again outperformed Value in Line with our Expectations. Lean pickings for Value Hunters. Costs pressures on the Rise. Acquisitions driving earnings growth. Capital Management was delivered mostly via special dividends
No-moat Primary Health Care met our expectations following recently issued guidance. However, the firm surprised by announcing a AUD 250 million capital raising to fund the acquisition of a day-hospital network, along with new initiatives aimed at improving operational capacity in existing medical centres and upgrading pathology infrastructure over a five year horizon. The capital raising is a 1-for-5.21 rights issue at AUD 2.50 per share. We assume the hospital purchase component is around AUD ...
Primary Health Care provides investors with exposure to a portfolio of medical businesses with reliable earning streams. We expect the latter to grow solidly over the medium and longer term as the firm fills excess capacity and benefits from rising demand from an ageing population. Earnings should be relatively insulated from cuts to public healthcare budgets, as the effective delivery of diagnostic services helps to constrain healthcare costs by enabling early treatment of disease. The ageing p...
No-moat Primary Health Care met our expectations following recently issued guidance. However, the firm surprised by announcing a AUD 250 million capital raising to fund the acquisition of a day-hospital network, along with new initiatives aimed at improving operational capacity in existing medical centres and upgrading pathology infrastructure over a five year horizon. The capital raising is a 1-for-5.21 rights issue at AUD 2.50 per share. We assume the hospital purchase component is around AUD ...
We cut our fair value estimate for no-moat Primary Health Care by 4% to AUD 3.85 from AUD 4.00 per share after adjusting for management’s confirmed expectations for fiscal 2018 earnings, now at the lower end of previous guidance of AUD 92 million-AUD 97 million, compared with our previous forecast of AUD 99 million. This assumes slower ramp-up of general practitioners, or GPs, dampening operating leverage, leading to EBITDA margin compression for the medical centre division in conjunction with...
We cut our fair value estimate for no-moat Primary Health Care by 4% to AUD 3.85 from AUD 4.00 per share after adjusting for management’s confirmed expectations for fiscal 2018 earnings, now at the lower end of previous guidance of AUD 92 million-AUD 97 million, compared with our previous forecast of AUD 99 million. This assumes slower ramp-up of general practitioners, or GPs, dampening operating leverage, leading to EBITDA margin compression for the medical centre division in conjunction with...
Primary Health Care provides investors with exposure to a portfolio of medical businesses with reliable earning streams. We expect the latter to grow solidly over the medium and longer term as the firm fills excess capacity and benefits from rising demand from an ageing population. Earnings should be relatively insulated from cuts to public healthcare budgets, as the effective delivery of diagnostic services helps to constrain healthcare costs by enabling early treatment of disease. The ageing p...
We cut our fair value estimate for no-moat Primary Health Care by 4% to AUD 3.85 from AUD 4.00 per share after adjusting for management’s confirmed expectations for fiscal 2018 earnings, now at the lower end of previous guidance of AUD 92 million-AUD 97 million, compared with our previous forecast of AUD 99 million. This assumes slower ramp-up of general practitioners, or GPs, dampening operating leverage, leading to EBITDA margin compression for the medical centre division in conjunction with...
We expect the much-anticipated reinstatement of Medicare rebate indexation for general practitioners effective July 1, 2018 to be positive for Primary Health Care's medical centre division, given that over 95% of services are bulk-billed and therefore highly sensitive to Medicare funding. This regulatory change underpins our assumed 2.5% uplift in growth for the division in fiscal 2019 and is incorporated into our five-year revenue CAGR of 2.9%. As such, our fair value estimate of AUD 4.00 per s...
We expect the much-anticipated reinstatement of Medicare rebate indexation for general practitioners effective July 1, 2018 to be positive for Primary Health Care's medical centre division, given that over 95% of services are bulk-billed and therefore highly sensitive to Medicare funding. This regulatory change underpins our assumed 2.5% uplift in growth for the division in fiscal 2019 and is incorporated into our five-year revenue CAGR of 2.9%. As such, our fair value estimate of AUD 4.00 per s...
No-moat Primary Health Care reported a mixed first-half fiscal 2018 result that was nonetheless in line with our expectations with little that would alter our long-term view of the company. We are leaving our fair value estimate at AUD 4 per share. Nonetheless, we found the commentary provided by incoming CEO Dr Malcolm Parmenter, previously CEO of Sonic Healthcare’s Independent Practitioner Network as promising. The revamp of the medical centres is focused on customising services at the medic...
In the March 2018 edition of the Hardman Monthly Newsletter, Nigel Hawkins addresses the attractions of quoted infrastructure funds that maintain a low profile. Over the next decade, infrastructure investment levels will remain high, especially in the energy, utilities and railways sectors. As such, infrastructure funds are well-placed to benefit from this trend. These funds, three of which are valued by the market at over £2bn, have been resilient performers over the last five years, althou...
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