Daily ShareChat: Ryman Healthcare

By Jenny Ruth

Friday 4th December 2009

Retirement village builder and operator Ryman Healthcare remains a "solid long-term growth story" after it reported a 12.7% rise in first-half net profit (under the old Generally Accepted Accounting Principals), says Craigs Investment Partners analyst Michelle Perkins.

"The value of Ryman's business model continues to shine through following the release of another record result," she says.

"While peers have struggled to maintain momentum, Ryman has again cemented its strong position relative to its peers."

Despite a slowing volume of sales in the wider housing market, Ryman's sales volumes remained robust, rising 8.5% to 319 units, Perkins says. While sales volumes in the wider market more than halved from their peak before bouncing back since March this year, Ryman's first-half sales were up 31.3% on its sales in the six months ended March 2007, she says.

"The resilience of Ryman's sales volumes is a reflection of the quality of the company's management," she says. "It also adds credence to our view that the company is a service provider to the aged care sector, not a property play."

Ryman's vacancy rate fell to 1.1% from 1.7% in March, another indication of the strong demand for its units.

"The fundamentals underpinning Ryman's long-term growth profile remain sound," Perkins says.

BROKER CALL: Craigs Investment Partners rate Ryman Healthcare as buy.

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