2023-06-15 09:38:09
Aljazira Capital revealed its expectations for the growth of profits in the health care sector, supported by increased employment and strong expansions, adding that the sector companies are preparing for a new round of expansions to accommodate the developments that the sector is going through, and the current developments such as regulatory changes and the expansion of insurance coverage with favorable demographics will provide fundamental shifts in the sector In the immediate and long term.
According to “Al-Jazira Capital”, the expected increase in the number of patients of categories A and B and VIPs as a result of the privatization of health care through insurance coverage will lead to the private sector racing to benefit from the expected growth in patients, as the private sector currently covers only about a third.
She added that health care service providers are preparing for the transformation through their own strategies, and she said, “taking into account the geographical differences, services, pricing and target patients. We took into account each company’s position and expansion plans in our optimistic outlook for the sector, in which we saw no signs of slowing growth.”
On the other hand, “Al-Jazira Capital” recommended neutrality for the shares of 6 companies in the health care sector, noting that the current evaluations of the shares reflect the expected growth of the sector.
According to the “Al-Jazira Capital” report, the Saudi health care index achieved a total return of 51.3% in the past two years, compared to a return of 5.9% for the main market index (TASI), during the period in which instability prevailed in the market and the economy, indicating that 50.2% of the increase in the sector index It came from the share of Dr. Sulaiman Al Habib Medical Group, whose share rose by 66.2%, followed by the share of Dallah Health, the second largest influencer, by 21%.
She added that the performance of most of the healthcare indices globally was similar to the performance of the healthcare sector index in TASI. Despite the similarities, the incentive for the healthcare sector in Saudi Arabia was different from the incentives for the rest of the market during the period.
And “Al-Jazira Capital” showed that in terms of performance for a month period, the sector’s correlation with the market was most often during the past two years closer to 0, with a correlation for the period at 0.53 through 486 samples during the past two years. The health care sector index closed at an increase of about 38% from the comparison period. At a time when the main market index is declining. The same data applies to year-to-date performance.
A table showing the expected profits for 6 companies listed in “TASI” and the target prices for their shares
| company | Expected profits (million riyals) | Target price per share (SAR) | recommendation | ||||
| 2023 | 2024 | 2025 | 2026 | 2027 | |||
| Dr. Suleiman Habib | 1820.3 | 2007.3 | 2423.9 | 2776.7 | 3177.7 | 243 | neutral |
| Care | 199 | 238.1 | 261.8 | 280.6 | 294.4 | 117 | neutral |
| Al Hammadi | 307.1 | 341.5 | 392.1 | 441.1 | 496.2 | 52 | neutral |
| German Saudi | 83.7 | 99.5 | 135.8 | 168.9 | 204.6 | 56.1 | neutral |
| the heart | 356.6 | 434.3 | 528.8 | 612.4 | 678.1 | 144 | neutral |
| consolation | 681.8 | 807.4 | 941.5 | 1094.7 | 1257.5 | 229 | neutral |
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