The Covid-19 has provided opportunity for healthcare related companies – gloves and glove related, face masks, PPE, hospital beds and respirators and among others which the share price have been double fold or more.
However, Edgenta – being the HEALTHCARE Service Provider (which healthcare support contribute almost 50% of the total revenue) the share price yet to move. The share currently trading at RM2.12, a 12.8% higher than the lowest price of RM1.88 (52 weeks highest of RM3.52 on Sep 2019 and lowest of RM1.88 on Mar 2020). As compared to other healthcare companies like Pharma, Dpharma, YSPSAH, Kotra and among others – which the share prices have been double from their 52 weeks lowest.
NTA: RM1.83
PE: 11
EPS:19.27 cents
Divident Yield: 6.4%
Edgenta has registered a compounded annual growth rate (“CAGR”) of 13.4% in core revenue from RM1.27 billion in 2014 to RM2.38 billion in 2019, while core PAT has risen at a CAGR of 13.2% from RM101.0 million to RM188.0 million during the same period.
The Company has recently awarded a contract worth RM284.02 million to provide hospital support services to the Ministry of Health of Singapore’s restructured hospitals. The Covid-19 in Singapore still recorded 3 digits cases everyday with cumulative of 55k cases YTD. With the high cases of Covid-19 recorded in Singapore, the award will definitely benefit Edgenta.
All analysts are positive on the new contracts and upgraded its rating to “buy” with a higher target price.
RHB: RM2.75
HLG: RM2.63
MIDF: RM3.23
The order book of the Company currently stood at RM14bil. With the additional of RM284mil contract awared by Ministry of Health of Singapore, it can last the Company for 6 – 7 years based on revenue of RM2.38bil in year 2019.
Edgenta is 69.14% owned by UEM Group and UJSB (5.81%), and heavily held by local fund as below. The shares held by small shareholders/investor are less than 7%. That mean the shares can easily push up by the local fund.
KNB is said looking to PRIVATISE EDGENTA at price of RM3 – RM4 due to underperform share price of the later. Not sure how true the source (Note: please buy at your own risk). Personally I believe this share worth more than RM3 even without the privatisation deal. I have bought this share recently.
