GXH - Green Cross Health (formerly PHB - Pharmacybrands)

[winner69]

Share price just about got to 120 today

Later in the week maybe

[flyinglizard]

failed again, but be patient, patient patient!

[nztx]

The GXH board probably have a smile & a pat on the head reserved for all those who bought into
the changed stance on "Withholding the Dividends" for yet further durations on another
replacement reason thrown into the hat after Covid-19 excuses were starting to look thin ..


You may even wind up gracefully contributing to preservation of the pot of readies for a bit
of Aussie competition .. if no suitable acquisitions come GXH's way as well ..

How long is a piece of string and are they responding to market changes well ?

[flyinglizard]

Need replace CEO and the whole board members ASAP.

[flyinglizard]

The annual report shows some positive signs.

- Net debt to positive finally after easing dividend, around $12.9m. First time in recent years.
- The decrease in pharmacy revenue from FY21 to FY20 is 19.6m, the gain in both medical and community revenue during the period is ($5.7m+$15.80m) = $21.5m.
- The decrease in pharmacy profit from FY21 to FY20 is $1.1m, the gain in both medical and community revenue during the period is ($2.7m+$2.5m) = $5.2m.
- Net Assets approximate $150m

If the trend continues, the loss in pharmacy division has been offset by the growth from medical and community divisions. It already happened this financial year.

We take a look at the whole medical sector,

PE PB DIVIDEND YIELD REVENUE MARKET CAP
AFT 62.06 117 0% $113.1M $489.8M
EBOS 28.55 - n/a 2.79% $8.8B (2020) $5.33B
GXH 9.74 - n/a 0% $570.4M $163.2M
FPH 34.9 13.5 1.657% $1.97B $18.6B

A company in medical service sector with annual revenue of $570.4m, but its market cap is only 163.2m.

What's wrong? It is definitely a five bagger, in my view.

[BlackPeter]

Annual report is out: https://announcements.nzx.com/detail/374504

Obviously - the big news came already a month or so ago with the annual financials. Still - one of the reports worthwhile reading ... and, it even is readable! Compliments to the CFO ...

Apart of from the things already discussed at full year announcement:

Net asset value per share is (rounded) $1.05 (which is good for a share trading for $1.14) however - they do have a lot of intangibles on the books (given their earnings I think quite justifiable) ... and NTA per share looking now slightly healthier (up to negative 2 cents from negative 10 cents).

Liabilities to assets down from 64% to 59% (which is good and feels like manageable);

The direction looks clearly right.

RoE is 14% - not too bad.

Ah yes - and just for winner: 10 year revenue CAGR is 38.5, while 10 year earnings CAGR is only (a still healthy) 8.9; I know - they have been a different company 10 years ago, but still ... they probably should watch these low margin activities like community services ... high revenue, low earnings - but I think they know that.

[BlackPeter]

Nice ending to the week - somebody recognizing value?

GXHtrend.JPG

I do like the picture :

[flyinglizard]

Screenshot 2021-07-05 121607.jpg

Cannot be faking it again and again! ENOUGH IS ENOUGH!

[flyinglizard]

Screenshot 2021-07-05 121607.jpg

Cannot be faking it again and again! ENOUGH IS ENOUGH!

[flyinglizard]

disappointed doctor shareholders or upset institutions keep selling at $1.18, no dividend, slow business model transition, no attention from retail investors. The ship is sinking, wait for 2-3 more months?