RYM - Ryman Healthcare

[Vaygor1]

Good solid result with plenty in the pipeline, 13% growth in underlying profit might disappoint the market though.

Agreed Couta. SP based upon this announcement and the historical correlation with Underlying Profit should be in the $10.50 to $10.75 range.
It will be interesting to see if the market drives it down below $8.00... or further?

[winner69]

Agreed Couta. SP based upon this announcement and the historical correlation with Underlying Profit should be in the $10.50 to $10.75 range.
It will be interesting to see if the market drives it down below $8.00... or further?

$8 .........no way mate

[Vaygor1]

They have heaps of work ahead so I like the result. Solid but the market isnt going to like that 13% today.

They do have a load of work in front of them, but will they realise the number of new builds before 31-March-2018 to get to 15% increase in UP this current financial year? I think they will struggle. Either way FY ending 31-March-2019 will be a corka.

Market reaction will be interesting. RYM's target, as I have stated before, is an average of 15% increase in UP/annum, but my perception is the market views and expects this figure to be the minimum these days.

[Nasi Goreng]

The difference between 13% and 15% underlying profit growth is about $3m. So everyone needs to put that in perspective. The pipeline looks healthy... can't see it getting smashed over this.

[Vaygor1]

$8 .........no way mate

There are enough short-term thinkers out there to do it imho. Provide a fantastic buy opportunity if it did.

Results briefing live as I type at http://edge.media-server.com/m/p/agv4zgtt

[Beagle]

Announcement this morning. RYM increase in underlying profit up a 'pitiful' 13%... here we go boys !!

Ref: https://www.nzx.com/companies/RYM/announcements/301389

Hi Vaygor1,

I'm going to go out on a limb here and say that although this is the first time ever they've failed to meet their medium term target of 15% growth in underlying earnings per share the market will forgive them this one indiscretion as they have a very solid development pipeline ahead and I think they did very well to negotiate their way through some tough opposition to get the green light for their Devonport development. Underlying EPS is 35.6 cps. Projected underlying EPS for FY18 with profit growth of 15% is 41 cps. Line up Ladies and Gentleman and choose what PE you believe is appropriate.

[percy]

Good solid result with plenty in the pipeline, 13% growth in underlying profit might disappoint the market though.

Another fantastic result.
Will not take long before we are back to 15% growth.13% a minor blip.
We remain "well positioned."

[trader_jackson]

I'll summarize it in alarming terms: Arvida Group ('the old dog') is likely to have nearly (give or take a few percent) as much EPS growth this year, and the bigger, better, faster years are still ahead of it... yet Ryman is trading at a huge premium (due to its supposed exemplary management).

They didn't miss it by 2% or a couple of million, they were off it by 15% (2% / 13%) in my view.

Lets hope they get the pipeline sorted and don't miss it again, otherwise a re-rating is required (if not already over due)

Will be interesting to see how market reacts

[hardt]

A lot of people just buy into the news of 13% growth without even looking at what was expected...

Chances are the market will be friendly this morning.

[Beagle]

SUM grew underlying profits 50% in the last year and an average of 48% per annum for the last five years and currently trades on a forward PE of 5 less than RYM...Hmmmm
RYM about 21 for 31/3/18 year and SUM about 16 for 31/12/2017 year. Interesting situation...