Daily BriefsHealthcare

Health Care: Arrail Group, Rajthanee Hospital, Opko Health Inc and more

In today’s briefing:

  • Arrail IPO: Peer Comparison and Valuation
  • RJH: 4Q21 Earnings Grew YoY but Drop QoQ
  • Opko Health (OPK US): Diagnostic Business on Solid Grip; Pharmaceutical Business Ready to Take-Off

Arrail IPO: Peer Comparison and Valuation

By Shifara Samsudeen, ACMA, CGMA

  • Arrail, the largest dental services provider in China’s premium dental service market has announced the terms for its IPO.
  • The company plans to raise net proceeds of approx. HK$590m (US$75.9m) through issuing 46.5m at a price of HK$14.62 per share.
  • Cornerstone investors have agreed to purchase approx. US$65m worth of shares and these investors include Abax, Harvest, Hudson Bay, OrbiMed and TVHKL.

RJH: 4Q21 Earnings Grew YoY but Drop QoQ

By Pi Securities PCL, Thailand

  • Maintain HOLD rating with a TP of Bt33.50, based on 19.14xPE’22E,which is pegged to -1SD of 3-years trading mean.Despite drastic drop in 22E profit, its strategic location, combined with undemanding 
  • Its 4Q21 net profit was at Bt283m (+96%YoY, -42%QoQ), given weak QoQ revenue growth, and margin contraction due to lowered Covid-19 related contribution.
  • RJH’s 2021 earnings was at Bt1.01bn, implying +145% YoY, mainly attributed to higher contribution from Covid-related services.

Opko Health (OPK US): Diagnostic Business on Solid Grip; Pharmaceutical Business Ready to Take-Off

By Tina Banerjee

  • Opko Health Inc (OPK US)‘s core clinical testing business began to return to pre-pandemic volumes, while COVID-19- testing volume is expected to decline significantly.
  • Opko’s pharmaceutical business is expected to clock mid-to-high single-digit growth in 2022, with Rayaldee and Ngenla being launched in the international markets.
  • While diagnostic revenue is expected to decline 40% y/y, pharmaceutical business is anticipated to clock mid-to-high single-digit growth in 2022.

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