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Company Overview: Healius Limited (ASX: HLS) is a healthcare company offering medical and health-related services and healthcare technology solutions to medical and allied health professionals. HLS generates revenue from various segments. The company employs over 11,000 people and operates in more than 2200 locations throughout Australia.
1.1 HLS announced the successfully completion of Institutional Entitlement Offer
Institutional Entitlement Offer
Retail Entitlement Offer
FY23 Financial Results for the Period Ended 30 June 2023
The company’s FY23 results, released in late August, depicted growth in diagnostic platforms, particularly Pathology. Imaging revenue surpassed market expectations, whereas Specially Business as Usual (BAU) revenues noted a 6.3% growth YoY and stood at AUD 1.6 bn. Underlying Earnings Before Interest and Taxes (EBIT) came in at AUD 99mn in FY23. The Board decided not to pay a final dividend for FY23. As of 30 June 2023, net debt stood at AUD 447mn, which was reduced by AUD 78mn.
1.2 Key Risks and Challenges
Shareholders have been warned of dilution of respective holdings if the shareholders do not participate in the Offer. Failure to meet the terms and conditions of the Offer may become a hurdle for the group. The company is exposed to risks from a shortage of qualified professionals, regulatory challenges, and intense competition.
Stock Update
HLS expects growth in margin owing to volume recovery, cost reset strategy, organic growth, and development pipeline in the pathology market. It focuses on its core R&D strengths and enhances its market position in FY24 and beyond. The stock has witnessed a dip of ~40.6% in the last month, and over the last six months, it has declined by ~57.3%. The stock has a 52-week low and 52-week high of AUD 1.182 and AUD 3.405, respectively, and is currently trading below the 52-week high-low average. At the market close of 22 November 2023, HLS was trading at a price of AUD 1.225.
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 22 November 2023. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual’s appetite for upside potential, risks, holding duration, and any previous holdings. An ‘Exit’ from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.
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