01/03/2024 09:30

Healius Ltd (HLS) $1.11

One of the positive aspects that shone through this reporting season has been the ability of companies to reduce costs to maintain profits as top-line growth becomes harder. This flexibility was enhanced through COVID, where companies had to be incredibly nibble as many watched sales plummet overnight. The opposite is true at Helius, with COVID testing volumes a huge win for their pathology business, underpinning a significant uplift in sales.

Read more

21/11/2023 09:25

Healius Ltd (HLS) $1.83

HLS is looking to raise $187mn through a rights issue at $1.20, a steep 34.6% discount to the stock's last trade on Friday – they needed the cash! The offer was on a 1-for-3.65 basis, with the freshly listed equity looking to list under a separate ticker code as its suitor, Australian Clinical Labs (ACL), still has its scrip-only offer open.

Read more

27/10/2023 09:06

Healius Ltd (HLS) $1.93

HLS is testing its 2020 lows as debt levels weigh on investor sentiment. e.g. on June 30th, their gearing ratio was at 3.48x, still below the latest increased 4.0x covenant agreed with bankers. At the start of the month, we wrote, “We think HLS is residing in the “if in doubt, stay out” category as long-dated yields rise at a time when their debt levels are simply too high, the stock has subsequently fallen -11% but nothing’s changed.

Read more

05/10/2023 09:01

Healius Ltd (HLS) $2.17

HLS fell another -1.4% yesterday, taking the stock down towards its COVID lows, debt levels are likely to be weighing on investor sentiment – on June 30th, their gearing ratio was at 3.48x, below the latest increased 4.0x covenant agreed with bankers.

Read more

30/08/2023 17:03

Healius (HLS) $2.92

HLS +7.75%: A tough year for HLS culminated in a poor result, although it was not as poor as the market was expecting, EBITDA was actually a touch better however net profit was weaker given higher interest expense. Revenue of $1.7bn dropped down to just $25m in profit as they grappled with multiple challenges which caused them to scrap their final dividend – a prudent move given gearing remains too high. In terms of commentary, imaging with solid while pathology was turning, and given the cost out and improving demand, FY24 should be a better year.

Read more

20/03/2023 16:52

Healius (HLS) $3.01 & Australian Clinical Labs (ACL) $3.68

HLS +8.27%: Healius jumped today after a takeover bid from competitor Australian Clinical labs was announced pre-market. The deal would see Healius shareholders receive 0.74 ACL shares for each HLS owned, which represents no premium to Friday’s close price, but Healius shareholders would end up with 68% of the combined group.

Read more

17/02/2023 09:19

Healius Ltd (HLS) $3.02

HLS probably shouldn’t be on today’s list but it rallied strongly this week including a +7.1% move yesterday, however, the stock did initially fall after its report 10 days ago - it’s now recovered most although not all of those losses. The drop in mass COVID testing hurt its 1H earnings and investors simply don’t believe its optimism for the 2nd half, but as SHL illustrated diagnostic testing is gaining strength. However to play this post-COVID theme we prefer SHL i.e. the stronger option.

Read more

29/11/2022 09:05

Healius Ltd (HLS) $3.03

HLS fell over -10% yesterday following a weak trading update, revenue for the year-to-date has fallen by 32% weighed down by an 85% fall in Covid testing revenue i.e. tests have fallen from an average of 13,000 in July to 3-4,000 in recent weeks. The business has experienced the double whammy of margin contraction which has almost halved to ~20%, normal business revenues such as pathology and day hospital have fortunately seen margin revenues edge higher over the same period, although volumes are still fairly weak. If we put Covid testing to one side, Healius gets a lot of its work from hospitals so listening to what the hospital operators are saying is important to get a read on HLS. Ramsay Healthcare (RHC) holds its AGM today so worth listening for those interested in HLS, however, in previous announcements, RHC has only called recovery late in 2023 which implies HLS will be similar. Ultimately, the underlying problem for MM is this is a business that’s been struggling for more than a decade and from a valuation perspective, it doesn’t look attractive until it falls towards the $2 region. • We see no reason to consider HLS around the $3 region, but it is one for the Hit List mid 2023.

Read more

28/11/2022 17:05

Healius (HLS) $3.03

HLS -10.09%: the healthcare and diagnostics company tumbled to a 2-year low today on the back of a weak trading update.

Read more

30/08/2022 17:27

Healius (HLS) $3.83

HLS +$3.51: An inline FY22 result for the healthcare company today following a more challenging past 6 months, and the meet (rather than beat) was enough to see the share price higher. Revenue of $2.34bn compared to consensus of $2.36bn with Net Profit After Tax (NPAT) of $309.30m a whisker ahead of the $305.87 tipped. The FY22 dividend...

Read more