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Fisher & Paykel Healthcare

By Dan Stratful

Monday 16th January 2012

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Fisher & Paykel Healthcare is a quality company, but it is facing a strong NZD against most major currencies (except Australia) and it will continue to battle a high NZD in 2012.

Despite this FPH operates in a growth, defensive sector and the shares have sold off recently to reflect the strong NZD. In fact the shares have sold off so much that they are beginning to stack up from a dividend yield perspective, which at $2.20 per share provides almost an 8% gross dividend yield. Dividends are expected to remain constant in future years so the dividend yield looks sustainable.  

FPH’s interim result for the six months to 30 September 2011 showed that it is still growing in constant currency terms. In US dollars, operating revenue grew 18% to US$205.7 million in the interim period which is fairly strong growth.

In the year to 31 March 2012, FPH expects continuing growth in demand for its products and is expecting constant currency growth of approximately 25% in net profit after tax for the full year ending 31 March 2012 (FY12), excluding last year’s deferred tax charges. Based on an exchange rate range of 0.75 to 0.80 for the NZD:USD for the remainder of the FY12 year, FPH expects operating revenue to be in the range of NZ$520 million to NZ$530 million and net profit after tax to be in the range of NZ$62 million to NZ$67million.

Status: Growth/Yield buy

FPH shares today traded at $2.20

For sharemarket and fixed income trading enquires contact:
Dan Stratful at Investment Research Group (IRG)
Authorised Financial Adviser (AFA)
0800 437 8489, 09 304 0232,
**A disclosure statement is available, on request and free of charge.

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