Japara Healthcare Ltd

JHC Dividend Details
 
Approval of new aged care places: Japara Healthcare Ltd (ASX: JHC) recently noted that from the outcome of the Australian Government 2015 Aged Care Approvals Round, the company has been allocated 313 new residential aged care places under the 2015 process. The company chief executive believes that this will underpin the delivery of its development pipeline. For the first half of FY2016, revenue increased 13.4% to $155.9 million from year ago period. EBITDA increased 10.2% to $28.1 million for the same period. JHC declared an interim dividend of 5.75 cash per share, an increase of 4.5% from prior year.
 

Financial highlights (Source: Company reports)
 
Looking ahead to FY16, earnings are seen higher than previous year as Profke acquisition is foreseen contributing EBITDA of over $4 million in the current financial year. In the past six months trading session, the stock has corrected almost 9.1% (as of April 13, 2016) giving an attractive opportunity. With a strong dividend yield, we believe there is room for growth based on above stated fundamentals and thus recommend a "BUY" rating at the current share price of $2.85
 
 
JHC Daily Chart (Source: Thomson Reuters)

 
Monash IVF Group Ltd

MVF Dividend Details
 
Growing treatments at the core markets: Monash IVF Group Ltd (ASX: MVF)for the first half 2016 delivered a 31.6% rise in group revenues to $79.3 million and 27.6% increase in net profit after tax to $14 million compared to year ago period. Total IVF patient treatments for the period in Monash key markets increased 9.8%.
 

Australian market share (Source: Company reports)
 
Balance sheet is strong as indicated by improved net debt to equity ratio of 62.4% compared to 67.2% earlier and a 120 basis point improvement in return on equity to 17.1%. In the last six month trading session, the company's stock price recorded 30.60% gains (as at April 13, 2016). Also, with a strong dividend yield, the company declared an interim dividend of 4 cents indicating an increase of 23.1% from prior year period. Based on the above stated positive company fundamentals, we believe that investors can "HOLD" the stock at the current share price of $1.775
 
 
MVF Daily Chart (Source: Thomson Reuters)
 

Primary Health Care Ltd

PRY Dividend Details
 
Recycling initiatives: Primary Health Care Limited (ASX: PRY)recently announced that it has entered into a binding agreement to sell 100% of its Medical Director business to funds advised by Affinity Equity Partners for $155 million. This is part of the company's recycling initiatives from the Strategic Review and with this PRY's balance sheet would be strengthened and also fund future growth from existing capital base.
 

Second half of 2016 and forecast (Source: Company reports)
 
First half financial year 2016 results indicate a 4.6% and 28.5% rise in revenue and net profit after tax respectively. In the past three months trading session, the company's stock price has surged 52.42% (as of April 13, 2016). However, we believe that the stock is "Expensive" at the current share price of $3.79
 
 
PRY Daily Chart (Source: Thomson Reuters)
 

Virtus Health Ltd

VRT Dividend Details
 
Expanding Australian market: For the first half financial year 2016, Virtus Health Ltd (ASX: VRT) recorded an increase of 15.4% in its revenue to $132.2 million mainly driven by growth in the Australian and International ARS cycle numbers. The eastern states of Australia reported a 10.2% growth in ARS market based on IVF cycles performed. Reported group EBITDA was higher by 10.3% to $36.2 million, while net profit after tax pre-minorities rose 9.2% to $18.8 million.
 

Diversifying revenue mix (Source: Company reports)
 
Interim dividend stood at 14 cents per share compared to 13 cents in year ago period. With a strong dividend yield and about 7.67% gain in the past one month trading performance (as of April 13, 2016), we believe there is more room for the stock to garner profits based on strong company financials and thus recommend a "BUY" at the current share price of $6.66
 
 
VRT Daily Chart (Source: Thomson Reuters)

 
Healthscope Ltd

HSO Dividend Details
 
Boosting Capital Position: Healthscope Ltd (ASX: HSO) recently announced the successful pricing of a new $300 million private placement note issuance to U.S. debt investors. The proceeds of the same will be used to replace a tranche of existing corporate debt facility and provide additional funding flexibility. For its first half financial results, HSO recorded a group revenue of $1.15 billion, an increase of 5.5% from prior year period. Statutory net profit after tax surged 64% to $95.9 million, reflecting strong results from core operations and divestment of the loss making Australian Pathology operations. Trading at a decent dividend yield, the company declared an interim dividend of 3.5 cents per share compared to 3.3 cents in year ago period.
 

CapEx and Gearing supporting future growth (Source: Company reports)
 
Looking ahead, HSO has three major projects that would be completed in the second half of the year thereby leading to accelerated growth in FY17 and beyond. In the past three months, the HSO's stock price has gained about 5.6% (as at April 13, 2016) and we believe that based on strong growth outlook and fundamentals, there is more upside yet to be witnessed and thus recommend a "BUY" at the current share price of $2.72
 
 
HSO Daily Chart (Source: Thomson Reuters)
 

Integral Diagnostics Ltd

IDX Details
 
Aiming to leverage industry growth: Integral Diagnostics Ltd (ASX: IDX)recorded statutory revenue of $82.1 million in first half financial year 2016, an increase of 16.6% from year ago period. EBITDA was up 70.5% to $11 million, net profit after tax increased 235.9% to $3.8 million. IDX has a strong balance sheet and a conservative gearing with net debt at 1.5x pro-forma EBITDA LTM.
 

Industry Thematics (Source: Company reports)
 
Comparative to the industry growth of 2.3% in patient examination volumes in first half 2016, IDX stood at 3.9% growth. In the past 3-months trading session, the stock dipped over 17.6% (as at April 13, 2016). IDX aims to have a better 2H16 but FY16 prospectus forecast is difficult to be achieved given industry headwinds. Accordingly, at the back of mixed outlook, we recommend the stock to be "Expensive" at the current share price of $1.36
 
 
IDX Daily Chart (Source: Thomson Reuters)

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