HEALTHY REVENUES ON VOLUMES AND PRICES GROWTH CLHO reported 1Q23 revenues of EGP777 million (+22.0% YoY, +9.1% QoQ), in line with our estimates of EGP781 million. Growth in revenues came despite a strong base in 1Q22, that included covid revenues. Annual and sequential revenue growth is driven by volumes and price increases. Number of cases served during the quarter grew by 5% YoY, along with a healthy double digit revenue growth across different services offered. Sequential growth was capped...
FLAT REVENUES ON AN UNFAVORABLE BASE EFFECT CLHO reported flat 1Q22 revenues of EGP637 million (+0.6% YoY, -1.8% QoQ), in line with our estimates of EGP640 million. Revenue performance is driven by an unfavorable solid base effect in 4Q21 and 1Q22, that were partially fueled by solid covid revenues business. Revenues were driven by a healthy 16% YoY growth in non-covid business, offsetting a 50% YoY decline in covid-related revenues. CLHO served 0.26 million cases (+10% YoY), driven by higher...
CLEOPATRA HOSPITAL (EG), a company active in the Health Care Providers industry, now shows a lower overall rating. The independent financial analyst theScreener just confirmed the fundamental rating of 3 stars out of 4, as well as the stock market behaviour of the title as moderately risky. However, environmental deterioration penalises the general evaluation, which is downgraded to Neutral. As of the analysis date January 14, 2022, the closing price was EGP 5.14 and its expected value was estim...
ROBUST REVENUE GROWTH ACROSS ALL SEGMENTS, CAPPED BY A RELATIVELY WEAKER JULY CLHO reported solid 3Q21 revenues of EGP624 million, broadly in line with our estimates of EGP600 million, compared to EGP536 million in 3Q20 and EGP644 million in 2Q21, showing an increase of 16.4% YoY and a slight decline of 3.1% QoQ. Solid annual performance came on the back of an increase of 11.0% YoY and 6.4% QoQ in number of cases served, along with an optimized case mix, improving utilization rates, and ramp ...
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....
SOLID REVENUE GROWTH DRIVEN BY FAVORABLE PRICING DESPITE A STRONG COMPARABLE QUARTER CLHO reported solid 1Q21 revenues of EGP633 million, compared to EGP503 million in 1Q20, and compared to EGP611 million in 4Q20; showing an increase of 25.9% YoY and 3.7% QoQ. Solid annual performance came despite a strong comparable quarter that included only minor impacts to patient volumes and operations related to covid-19 pandemic. Revenue growth continues to be driven by optimized case mix, favorable pr...
STRONG QUARTERLY REBOUND CLHO reported 4Q20 revenues of EGP611 million, compared to EGP511 million in 4Q19, and compared to EGP536 million in 3Q20; showing an increase of 19.5% YoY and 13.9% QoQ. Solid sequential recovery in 4Q20 is mainly attributed to a robust recovery in patients volumes across all segments, where total number of patients served reached 271.0k patients (+13% QoQ, -6% YoY), which resulted in revenues reaching a record-high, attributed as well to improving utilization and an...
ON THE GROUND UPDATE AND 2020 OVERVIEW * 4Q20 and 2020 Outlook: management expects revenues to grow by around 20% YoY in 4Q20, bringing 2020 revenue growth to more than 10% YoY. On the margins side, 4Q20 margins were back to historical averages. * During 2020, CHG started with a very strong performance, where patients' volumes were growing along with a favorable case mix. Starting March 2020, which was the beginning of the pandemic lockdowns, the group’s main focus was sustainability al...
CI Capital is effective today restricting equity research coverage on Cleopatra Hospitals Group (CHG). Restriction of coverage entails that our analyst(s) will no longer be giving any forward-looking statements or views on the stock until further notice. Our last published rating on Cleopatra Hospitals Group (CHG) was Overweight and target price was EGP6.30 per share.
SOLID SEQUENTIAL RECOVERY DESPITE LOWER ANNUAL VOLUMES CLHO reported 3Q20 revenues of EGP536 million, compared to EGP462 million in 3Q19, and compared to EGP340 million in 2Q20; showing an increase of 16.0% YoY and 57.5% QoQ. Solid sequential recovery in 3Q20 is mainly attributed to a gradual patient recovery that started in June 2020. CLHO had witnessed strong signs of recovery across all segments, where patient volumes started to be on track to return to pre-crisis levels after a solid mont...
Healthcare coverage 3Q20e earnings set to rebound; Pharma players to lag. We look for a q-o-q rebound in revenues and earnings for our healthcare coverage, chiefly underpinned by a hike in traffic, following the ease of mobility restrictions, and a slowdown in COVID-19 cases in 3Q20. Pent-up demand is seen as coming more in favour of healthcare services providers, with earnings growing on average by 11% (excluding SPMD). Conversely, pharma players are seen delivering muted earnings growth (exclu...
Solid business model at undemanding valuation. We reiterate our Overweight rating on CHG, a unique exposure to Egypt’s healthcare story, on the mix of a high growth profile, healthy margins, strong FCF generation, liquid BS, and solid business model. We foresee a strong rebound in 2H20, translating into a 2020e y-o-y flattish adjusted EBITDA of EGP507mn. We revise our TP downwards by c15% to EGP6.30/share, as we trim our 2020-24e EBITDA forecasts by 15%, as the pandemic resulted in a difficult t...
REVENUE GROWTH DRIVEN BY INPATIENT SERVICES AND SURGERIES REVENUES CLHO reported 1Q20 revenues of EGP503 million, compared to EGP416 million, an increase of 20.9% YoY which can be mainly attributed to a healthy revenue growth during January and February –outperforming management targets- and showing an increase of 18.9% YoY in inpatient revenues (highest revenue contributor at 24.5% in 1Q20) which was fueled by a growth of 13.8% in volumes and 4% in average revenue per patient, followed by a ....
CLHO management believes that the number of covid-19 cases will continue to increase until June when the curve for new cases will peak and then the number of cases will start to normalize. This is about the same time when the government starts the reopening phase plans. 1. MoH currently asks private hospitals not to send suspect covid-19 cases to isolation hospitals directly, but to make proper CT scan and lab analysis then send the swap to the MoH. If cases test positive, they will be direc...
Superior revenue visibility, with further room for upside. CHG’s growth story remains intact, offering a robust 2019-21e EBITDA CAGR of 26%, 20% of which is organic, while the balance stems from the company’s recent acquisitions. CHG trades on a 2020e P/E of c23.1x, while offering a c23% discount to peers when adjusted for growth. We cut our TP by c7%, as we opt to increase our WACC assumption by 100bps to 14.5% (on lower debt weight of c2% vs. 30% previously), while stretching our forecast hori...
A market leader propelled by expansion plans, Cleopatra Hospitals Group (CLHO) is the prominent private hospital group in Egypt in terms of number of beds and facilities with an expected capacity of c800 beds in four organic hospitals, two polyclinics launched in 2019, a newly acquired 50-bed hospital and the acquisition finalisation of a 100-bed hospital. CLHO currently has a 46% market share among the top-10 large private hospitals in Cairo. Management’s key objective is expanding its geogra...
Operations: • Management stressed that Ramadan is a key factor for the sequential drop. It also advised that annual volume increase (+7% YoY) showcases management’s promise to continue to serve more patients. • Management to maintain its annual price increase at 11-14% YoY, in line with inflation figures.
CLHO reported 2Q19 revenues of EGP409 million, down 2% QoQ and up 25% YoY. Annual improvement came on the back of higher volumes (15% YoY) as well as improved case-mix (4.9% YoY). Most business segments witnessed higher volumes, except for ‘Catheterizations’ (CAT) which witnessed a 7% YoY drop. However, the drop was compensated by improved signs of efficiency (revenue/CAT +2% YoY). Management noted that the number of patients served increased to 232,000 patients (+14% YoY) as well as increa...
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