Director, Pearl Hill Advisors

Nicholas Tanner

Director

Pearl Hill Advisors

Equity Bottom-Up

<p>SMS is a great business, offering nursing recruitment services via the internet. Need for nurses is growing, and the way nurses search for jobs is increasingly Internet based. This business continues to grow at c 10% p.a. SMS is now doing same thing for care workers, and also offering a service to help with administrative processes at care worker facilities such as helping to recoup elderly care payments from the government. This year sales (Y32.3bn) and operating profits (Y4.8bn) expected to be up 20% respectively. This is probably slightly conservative. We would look for another 20% profits growth next year. Consensus is for Y6.1bn, and is not unreasonable. Issue is price, shares off 15% this month on sell off. Now on 35x 3/20, they are not cheap but a great domestic growth business. BUY as a longer term growth story.</p>

SMS is a great business, offering nursing recruitment services via the internet. Need for nurses is growing, and the way nurses search for jobs is increasingly Internet based. This business continues to grow at c 10% p.a. SMS is now doing same thing for care workers, and also offering a service to help with administrative processes at care worker facilities such as helping to recoup elderly care payments from the government. This year sales (Y32.3bn) and operating profits (Y4.8bn) expected to be up 20% respectively. This is probably slightly conservative. We would look for another 20% profits growth next year. Consensus is for Y6.1bn, and is not unreasonable. Issue is price, shares off 15% this month on sell off. Now on 35x 3/20, they are not cheap but a great domestic growth business. BUY as a longer term growth story.

SMS (2175) Medical Recruiter Offering Steady Long Term Growth. BUY Here.

Sms Co Ltd

SMS (2175) Medical Recruiter Offering Steady Long Term Growth. BUY Here.