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
Mouwasat: Q3 22 Results Analysis | New hospital costs drive earnings m...
Mouwasat reported a weak set of results with a net income of SAR122mn, down 14.3% yoy (-13.6% qoq) in Q3 22. This is lower than the SNB Capital and consensus estimates of SAR142mn and SAR143mn, respectively. The variance in bottom-line was due to initial costs related to ramp up of expansion of Mouwasat Hospital in Dammam and the New Mouwasat Hospital in Madinah. Additionally, increase in financial costs also pressurized the earnings. Revenues for Mouwasat increased 3.4% yoy (-1.6% qoq) to SA...
- Talha Nazr
Mouwasat: Expansion activities lead to earnings miss
Mouwasat reported a broadly in-line set of Q2 22 results. Although the net income remained flat yoy (-5.8% qoq) at of SAR141mn in Q2 22, it was in-line with the SNB Capital and consensus estimates of SAR148mn and SAR145mn, respectively. The flat bottom-line was a function of 5.9% yoy (-1.6% qoq) revenue growth to SAR558mn, which was offset by a contraction of gross margins. * Revenue increased by 5.9% yoy (-1.6% qoq) to SAR558mn and was in-line with our estimate. The revenues increased due t...
- 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...
MOUWASAT MEDICAL SVS. receives a double requalification that leads to ...
MOUWASAT MEDICAL SVS. (SA), a company active in the Health Care Providers industry, sees its general evaluation downgraded to Neutral on account of a double requalification. The independent financial analyst theScreener just removed a fundamental star(s) for a 2 over 4-star rating. As such, market behaviour has also deteriorated and is evaluated as moderately risky. theScreener believes that the loss of a star(s) and the increased risk justifies the general evaluation downgrade, which passes to ...
- Nauman Khan
Mouwasat: Revenue growth drives net income
Mouwasat reported a net income of SAR147mn in Q4 21, up 2.6% yoy (+2.9% qoq). This is in line with the SNB Capital and consensus estimates of SAR147mn and SAR144mn, respectively. The earnings improvement was driven by revenue growth of 3.5% yoy (+4.0% qoq) and cost efficiencies with opex-to-sales declining to 16.7% vs 18.4% in the same period last year. We downgrade the stock to Neutral while maintaining our PT of SAR 214.1. * Revenue increased by 3.5% yoy (+4.0% qoq) to SAR552mn and was in ...
- Nauman Khan
Mouwasat: Attractive valuation, discount is not justified
We maintain our Overweight rating on Mouwasat with a revised PT of SAR149.1. The COVID-19 impact was significantly lower than our initial assessment, with operations normalizing in Q3 20 which we believe would enable Mouwasat to reach net income of SAR536mn in 2020f (+27.4% yoy). A healthy balance sheet, favourable client mix and strong expansion pipeline are the stock’s key strengths. The stock is trading at an attractive 2021f PE of 24.9x vs its peer group average of 25.7x, which we believ...
- Nauman Khan
Mouwasat: Strong top-line growth drives earnings
Mouwasat’s net income for Q3 20 stood at SAR161mn, higher than the NCBC and consensus estimates of SAR120mn and SAR115mn, respectively. The deviation is primarily on account of higher than expected revenues growth and margin expansion. Furthermore, lower financing cost and positive contribution from Khobar facility had a positive impact on the bottom line. Since our last update note in April 2020, the stock has surged c70% to exceed our PT. We await Q3 20 financials to update our view and es...
- Nauman Khan
Mouwasat: Positive long-term outlook, despite near-term headwinds
We maintain our Overweight rating on Mouwasat with a revised PT of SAR95.1. Given its strong balance sheet, low leverage and diversified client base, we believe Mouwasat is well-positioned to weather the near-term headwinds arising from the Covid-19 pandemic. We believe expansion projects in Dammam and Madinah, together with the ramp-up of Khobar operations, remain the key earning drivers. The stock is trading at an attractive 2021f PE of 19.5x, well below its the five-year average of 25.7x.
- Ahmed El Moataz
- Khaled Sadek
Saudi healthcare | Resilient to shocks; Mouwasat our top pick
Balancing risk with growth; Mouwasat stands out, Dallah lags. MMS’s story continues to unfold, with Riyadh Hospital’s contribution on the rise, improving revenue/patient and mitigating pressures from higher overheads stemming from Khobar Hospital (scheduled for 3Q18). MMS trades on a 2018e P/E of 23x vs. peers’ 25x, while offering RoE 22% vs. peers’ 13%. We believe Dallah will witness negative FCF in 2018-19 and flattish 2018 EPS growth, on pre-operating costs related to Namar and Nakheel expans...
Ford Equity International Rating and Forecast Report
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
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