- NARH’s 57%/233% YoY EBITDA/PAT growth surprised the street by 17%/24%.
- NARH demonstrated strong operating improvement across both domestic and Cayman Hospital (EBITDA grew 59% and 112% YoY respectively).
- Domestic EBITDA margin improved by 4ppt as 16% YoY patient growth drove operating leverage, especially in mature hospitals in South and East.
- Revenue/patient also held up due to: i) improving case mix (transplants); ii) scaling up of oncology; and iii) steady international patients.
Valuation and View: NARH’s RoCE improved from 9% in 2QFY19 to 18% in 2QFY20.
At 37x one-year forward PE, the stock price is reasonable given expected EPS CAGR of 72% over FY19-22 without any growth capex as operating and financial leverage play out.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
Found this insight useful?
Please share with your friends and family as well. You can also subscribe to one of our channels listed at the bottom of this page.