Dubai's decision to roll out mandatory healthcare insurance is good news for United Arab Emirates-based private healthcare operator, NMC Health (NMC). That should boost patient numbers once those Dubai residents currently without medical cover (around 66 per cent of the population) prepare to join the scheme this year.
Even before that, the group has been growing solidly. NMC's healthcare division, for instance, grew patient numbers by 9.5 per cent in 2013 to 2.1m, which boosted revenue per patient by 5.6 per cent to $112 (£67). The division's revenues, which are generated from operations in Abu Dhabi, Al Ain, Dubai, Sharjah and Umm Al Quwain grew 15 per cent to $289.3m.
NMC has also grown its reputation as a pharmaceuticals distributor. Top-line growth in the distribution division accelerated by 10.7 per cent to $300.2m in 2013, and plans to open a new general hospital in Dubai should also help to bolster NMC's market share. Moreover, that's just one of three new hospitals, and a medical centre, that are due to join NMC's portfolio this year
The construction timescale here, however, will have implications for forecasts. Broker Numis Securities currently expects EPS for 2014 to fall to 34.9ȼ and believes estimates could be reduced once construction plans are updated.
NMC HEALTH (NMC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 454p | MARKET VALUE: | £843m | |
| TOUCH: | 451p-454p | 12-MONTH HIGH: | 506p | LOW: 263p |
| DIVIDEND YIELD: | 1.0% | PE RATIO: | 21 | |
| NET ASSET VALUE: | 208ȼ | NET DEBT: | 16% | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (ȼ) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 444 | 43.8 | 33.1 | nil |
| 2012 | 490 | 59.8 | 34.3 | 4.10 |
| 2013 | 551 | 69.1 | 36.7 | 4.40 |
| % change | +12 | +16 | +7 | +7 |
Ex-div: 28 May Payment: 3 Jul £1=$1.66 | ||||
