Best play on industry dynamics. ISP is best-positioned among healthcare listings to capture Egypt’s: i) post COVID-19 normalisation within the pharma market, ii) digitalisation and B2B e-invoicing displacing small, informal players, and iii) higher public spending. The stock is one of our high-conviction ideas for 2022. Having underperformed the EGX30 by 36% y-o-y, ISP trades on a 2022e P/E of 9.1x, 22% below its two-year average of 11.7x. Our 2022 EPS implies 23% y-o-y growth, ~10% below guidan...
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....
ISPH is the fastest growing pharmaceutical distributor in the Egyptian market for the last 6-7 years and is positioned as the second largest market player, with a market share of 20.0% in June 19 vs 12.0% in FY 13. Management expect to capture further market share in the coming period as the market witnesses increased tender business, where multinational manufacturers are more open to tie up with private sector companies vs over-dependence on public sector distributors in the past. We believe th...
With the need to improve healthcare and pharma services as a result of the increasing supply-demand gap, both CLHO and ISPH continue to demonstrate strong growth levels, higher efficiencies, which results in higher margins and continuous market share growth.
Q1 19 conference call highlights: Market trends: Development Egypt’s pharmaceutical market grew 23.5% yoy (+9% volume and +14.5% ASP). ASP growth in Q1 19 contributed to two-thirds of total market growth, whereas volume growth contributed to one-third of total market growth. This was in line with management’s forecast.
ISPH reported a 29% YoY surge in revenues. Revenue growth was driven by 17% YoY growth in volumes sold, supported by 23% and 5% YoY increase in clients and deliveries, respectively. ISPH’s business segments recorded enhanced YoY performance, which resulted in market share increasing to 19.7% in 1Q19 from 18.7% in 1Q18.
IbnSina Pharma reported a +12% qoq and +36% yoy surge in revenues, driven primarily by improved performance across all business segments, which resulted in market share increasing to 19.7% in FY 18 from 18.0% in FY 17. ISPH also increased their deliveries by 23% yoy to accumulate 8mn deliveries, with their client base expanding by 6% yoy, with a total of 42,157 clients.
Market share gains drive revenue growth and margin resilience: ISPH has successfully surpassed our estimates in FY2018 on revenue growth, where top line is expected to record EGP13.6 billion vs our previous estimate of EGP12.8 billion. We maintain our GPM estimates of 8.5-8.8% by FY18-end. Going forward, over 2019-2023, we project net sales CAGR of 31% over 2018-2023, with an average GPM of 8.3%, consistent with average margins achieved between FY17-18 (8.4-8.5%) and versus 7.2% average between ...
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