NMC first half results show a healthy performance

Share price boosted by positive revenue and profits.

Article updated: 20 August 2018 9:00am Author: Ian Forrest

  • The Abu Dhabi-based company said it has a positive outlook for the rest of the year as its profits surged
  • The shares responded positively to the news, swelling by 5% in early morning trading
  • The Share Centre continues to recommend NMC Health as a ‘hold’ for investors looking for capital growth and willing to accept a medium to high level of risk.

Interim results from healthcare group NMC Health today beat expectations and showed revenue up 20% to $932m along with net profit up 19% to $116.7m. The company said its profit margin improved by 220 basis points in the first half and management have a positive outlook for the second half.

The healthcare division saw revenues up 26% in the period and increased the number of operational beds in its hospitals by 36%. NMC sees its recent agreement with Hassana in Saudi Arabia as a good opportunity for further growth in the country.

These are good results from NMC Health and the positive outlook has clearly been well received by the market. The shares are up 5% in early trading following a strong run already this year. After such a rise, valuation becomes a key issue and at more than 30x forward earnings we feel that investors could wait for better buying opportunities. We therefore suggest a ‘hold’ recommendation for investors looking for capital growth and willing to accept a medium to high level of risk.

All information given including prices, yields and our opinion is correct at the time of publication. Our opinions on investments can change at any time and for our latest view please go to www.share.com. To understand how our Investment research team arrive at their views please read our Investment Research Policy.

Ian Forrest portrait photo
Ian Forrest

Investment Research Analyst

Ian’s background in investments, financial journalism and research has seen him advising private investors on equities and helping to manage portfolios. His qualifications include the Certificate in Financial Planning and the Chartered Institute for Securities & Investment’s Investment Advice Diploma.