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
Saudi German Hospital: Q4 22 Result Analysis | Strong results on highe...
Saudi German reported a strong set of results with a net income of SAR33mn in Q4 22 against a loss of SAR18mn in Q4 21 (+198.5% qoq). This is higher than the SNB capital and consensus estimates of SAR16.6mn and SAR17.2mn, respectively. We believe the variation was due to a higher top line on revised prices with key customers and a change in the sales mix. Enhanced efficiencies due to ramping up of new facilities also aided earnings. Revenue increased by 23.9% yoy (+20.6% qoq) to SAR618mn and ...
- Talha Nazr
Saudi German Hospital: Q3 22 Results Analysis | Initial costs on new h...
Saudi German reported lower than expected net income which declined 22.6% yoy (+6.5% qoq) to SAR11mn. This was lower than SNB and consensus estimates of SAR13m. We believe the variation was largely due to ramp-up activities and higher initial running costs of Makkah Hospital, Hai Jama Hospital and Abha Clinic, which put pressure on gross margins. Revenues increased by 2.7% yoy (+0.8% qoq) to SAR512mn and were in-line with our estimates. * Revenue increased 2.7% yoy (+0.8% qoq) to SAR512mn an...
- Talha Nazr
Saudi German Hospital: Earnings miss due to lower margins
Saudi German reported a weak set of results. Although net income increased by 14.1% yoy (-49.1% qoq) to SAR10mn, but it was lower than SNB Capital and consensus estimates of SAR22m and SAR16mn, respectively. We believe the variation was largely due to ramp-up activities and higher initial running costs of two new facilities, which put pressure on gross margins. Revenues increased by 11.3% yoy (-1.0% qoq) to SAR508mn and were in-line with our estimates. * Revenue increased by 11.3% yoy (-1.0%...
- 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...
- Iyad KhalidÊGhulam
Saudi German Hospital: Q1 22 earnings call summary
REVENUES * In Q1 22, revenues grew 22.7% yoy to SAR513mn. The growth was due to revised prices with key customers, recovery in patients’ visits – both inpatients and outpatients. * Inpatients increased by 15% yoy to c18k in Q1 22 compared to c16k in Q1 21, signaling a recovery. * Outpatients’ visits increased with an improved rate of 23% yoy to 373k compared to less than c300k in Q1 21. Outpatients increase was largely driven by insurance and cash segments. * The number of sur...
- Nauman Khan
Saudi German Hospital: Higher operating expenses drag net income
Saudi German reported a net profit of SAR14mn for Q3 21, down 58.9% yoy (+57.0% qoq). This is significantly below the SNB Capital and consensus estimates of SAR36mn and SAR33mn, respectively. Revenues increased by 1.3% yoy (+9.2% qoq) to SAR499mn and were in line with our estimates. We believe the weaker-than-expected result primarily came from higher operating expenses which may be due to higher accounts receivable impairments. * Revenue increased 1.3% yoy (+9.2% qoq) to SAR499mn and was in...
- Nauman Khan
Saudi German Hospital: Continued losses at Dammam drag earnings
Saudi German reported a weak set of Q1 21 results, as net income declined 42.9% yoy (-57.6% qoq) to SAR12mn. This compares with the NCBC and consensus estimates of SAR17mn and SAR21mn, respectively. The weakness primarily came from lower revenues, which declined by 4.1% yoy (-11.1% qoq) and were lower than our estimates of SAR428mn. The decline is attributed to lower volumes from one of its key clients. * Revenues declined 4.1% yoy (-11.1% qoq) to SAR418mn and were lower than our estimate of...
- Nauman Khan
Saudi German Hospital: Higher losses at Al Dammam drag earnings
Saudi German reported a weak set of Q4 20 results, with a net income of SAR29mn, down -23.9% yoy (-18.3% qoq). This compares to the NCBC and consensus estimates of SAR38mn. We believe the variance can be attributed to higher losses at Al Dammam facility. Al Dammam facility, which started operations in Q1 20, reported a loss of cSAR19mn in Q4 20 vs net loss of SAR11mn in Q3 20. Revenues grew +15.7% yoy (-4.4% qoq) to SAR471mn and were higher than our estimates of SAR435mn. We believe the varia...
- Nauman Khan
Middle East Healthcare Co: Expansions to drive growth, cash cycle is a...
We remain Neutral on Middle East Healthcare Company, the operator of Saudi German Hospital (SGH), with a PT of SAR39.8. The COVID-19 impact was significantly lower than our initial assessment, with operations normalizing in Q3 20 which we believe would enable SGH to reach a net income of SAR122mn in 2020f (+24.6% yoy). Expansions and improved efficiency are SGH’s key positives, while an inflated cash cycle and high leverage are the key concerns.
- Nauman Khan
MEAHCO: Inpatient segment supports strong results
Saudi German reported a net income of SAR16.4mn in Q2 20, in-line with our estimates of SAR16.5mn. Earnings increased 33.1% yoy, but declined 22.8% qoq. The yoy growth is primarily driven by an increase in higher margin inpatient segment, while the qoq decline reflects the impact of COVID-19 lockdown on outpatient numbers. We believe the outpatient numbers were severely impacted during the lockdown period, but recovered quickly in June as the lockdown eased. Revenues grew +5.7% yoy (-14.4% qo...
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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