Sharechat Logo

Ryman rides high on health sector wave

Friday 5th December 2003

Text too small?
Investors with an eye for the healthcare sector have had an impressive six months with notable increases in the share prices of all the key players.

One of them, Christchurch-based Ryman Healthcare, has reported a significant lift in interim earnings and is on track for another year of double-digit growth. The retirement home operator recorded a net profit of $8.3 million for the six months to September, up 10.6% for the period.

That followed a 38.3% increase in net profit to $15.13 million for the 2002 year.

Since May the shares have rocketed 37.5% and, with their price of about $2.10, have surpassed their previous peak of $2 way back in January 2000.

Like its peers, Ryman is putting heavy emphasis on this country's ageing population and is planning further development in the North Island.

The company operates 12 retirement villages and is building a new complex in Napier. During the previous six months it opened two new hospitals, in Wellington and Lower Hutt.

ABN Amro has a positive rating on Ryman's prospects and notes any cyclical slowdown will only have a muted effect on earnings. This is because the company has not priced its new developments too aggressively; therefore providing some headroom should the property market soften substantially.

Investors will be hoping the company can continue its strong earnings growth and take full advantage of what is a long-term growth sector.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: Blue-chip stocks Meridian, A2 lead market lower
NZ dollar rises on Brexit hopes, rate cut reassessment
Three not failing, just needs a new owner - MediaWorks CEO
Major investors back new CBL class action targeting directors
Rip Curl purchase a done deal on Kathmandu proxies alone
Comvita chair Neil Craig eyes the exit once he finds a new CEO
Mercury raises guidance on increased storage, high spot prices
Eroad reports strong 3Q sales growth, eyes ASX listing
MediaWorks puts TV business on the block
NZ dollar benefits as preliminary Brexit deal improves risk appetite

IRG See IRG research reports