Shocking - these guys have not even their own thread ... unless my search function stopped working.
Grown from the old Pharmacy Brands (Unichem and Life Pharmacies) and adding "The Doctors" is this an essential part of our health system, though perhaps not the most exciting.
I know its a boring company and the share price drop reflects that. Question is, whether this trend is just changing?
HY came out - and while not stellar, it is much better than that of many other retailers:
Revenue and Profit up compared to previous years HY results and outlook is cautiously optimistic.
https://api.nzx.com/public/announcement/442749/attachment/432992/442749-432992.pdf
While not a growth company - the backward PE (10 years) is 6.2 - i.e. it clearly looks undervalued, and the dividend yield (at current SP) is 5.2%. Not as good as still 4 weeks ago (somebody started buying), but not to spit at either.
GXH trend light.jpg
higher lows and higher highs, SP confirmed above MA100 and rising despite Ex-dividend - somebody is buying.
Just and accident of confirmed green shoots? Who knows ... but at this price the risk to buy too dear appears limited.
Discl: holding a small parcel ...
They still around BP and unloved
Might update my file on them u
chemist warehouse opening up in NZ murdered a big part of there business model
Quote from: snapiti on Dec 09, 2024, 11:50 AMchemist warehouse opening up in NZ murdered a big part of there business model
Sure - we discussed this argument on the other forum to death. The rise of the Chemist discounters is clearly last decades news ... and lets face it, for a chain being murdered by them they still have a rather lively business.
Of course did the Chemist Warehouse (and the other discounters) take some of their business, but they still managed to grow as group revenue and earnings. Only drop in revenue I see was in 2023, when they sold their community care (which really was a hand break on their earnings) - otherwise revenue always up and earnings typically around the 14 cents +/-. Customers are conservative, the discounters offer frequently quite different brands (which are different, but neither better nor cheaper) and some of them look more like $2 shops. Very difficult to find in them what you need.
Medical services (like flu and Covid vaccinations - and others) are adding to the business - and at least in our area provide the established pharmacies a better job in this area than the discounters. And yes, there is as well the doctors. GP's are hard to find these days, i.e. they don't have to complain about lack of clientele. Future growth business in my view - they managed to grow the earnings in this area and should get better with increasing scaling up of business..
Anyway - where I am coming from they have the saying "those who are declared dead live longer". In this spirit I think they are doing so far quite well for a cost of living crisis.
Well, apologies for rising this boring subject again. I know, the discounters are going to murder them and they are bust anyway.
But still - It looks like the green line (MA50) was creeping some weeks ago over the red line (MA200), what we used to call in the good old times a Golden Cross. Bollinger Channel is narrowing and pointing upwards - and looking into the boring fundamentals - PE is between 6 (10 yrs backwards) and 6.8 (3 yrs forward) - admittedly, without EPS CAGR - i.e. earnings pretty static.
Screenshot 2025-02-19 083449.png
Still wondering, whether this could be an opportunity to buy into a currently undervalued essential stock, as long as one doesn't expect them to double or triple over time, but a 50% rise should well be in the cards. Just a nice dividend ride (5.4% currently) on a likely appreciating share price. Anyway, lets go back to more exciting subjects, shall we?
What was your thesis for buying? IMO there are some wider macro factors at play for this industry which could be a positive and/or a negative for GXH.
This one is interesting, don't own but been digging into it.
PE is 8ish
BV is around 1.16
but the balance sheet is a bit of red flag, fair amount of debt.
EPS is negative.
will continue to watch
Quote from: HAWKDOG on Aug 10, 2025, 04:53 PMThis one is interesting, don't own but been digging into it.
PE is 8ish
BV is around 1.16
but the balance sheet is a bit of red flag, fair amount of debt.
EPS is negative.
will continue to watch
Yes, "interesting" book - used to watch (and sometimes own) them.
Had however earlier this year my personal experience with them ... and found that they offer (in this case with their Unimed Pharmacy) little to their customers. Their managers seem to be able to do whatever they want.
I changed after the event my pharmacy and sold my small GXH shareholding.
But yes, RoE is low and NTA is low. Future may or may not be looking good - and given that they are anyway basically majority owned by others in the industry I suppose whatever happens won't be done for the minority shareholders.
So, yes - some potential gains, but as well plenty of risks, and whatever happens, it won't be the resident shareholders able to impact on it.
Feels a bit like CDI, just that healthcare is still a bit more risky.
LPL TRUSTEE LIMITED 45,935,821 31.96
CAPE HEALTHCARE LIMITED 45,840,983 31.90
LPL Trustee Ltd.is owned by director John [Andrew] Bagnall.
Cape Healthcare Ltd is 49% owned by director Peter Merton and 51% by Peter Zuellig.
Long term Ebos shareholders will remember EBO merging with Zuellig's Symbion Australian business.
I think there is an agreement between LPL Trustee Ltd and Cape Healthcare Ltd,something along the lines they will not increase their shareholdings.
Ebos has had influence over GXH, and has worked closely with them.At one stage Ebos had a director on GXH's board and Peter Merton served on Ebos board.
It has been expected for as long as I can remember [1992] that EBO would take over GXH.
Sale of Green Cross Health's Medical DivisionGreen Cross Health Limited (NZX: GXH) advises that it has entered into a conditional sale and purchase agreement to sell its Medical division (trading as The Doctors) to Tend Health for NZ$270 million, subject to certain adjustments, including for net debt and net working capital.The Doctors serves the largest enrolled patient base in New Zealand, with a network of 65 clinics delivering co-ordinated primary care to more than 400,000 enrolled patients. Tend Health is also a primary care provider in New Zealand delivering GP services through a network of clinics and a nationwide digital platform. Tend Health is backed by a number of iwi and local investors, meaning The Doctors will remain under New Zealand ownership.The sale is conditional on Green Cross Health shareholder approval which will be sought at a meeting to be held in July.Subject to the satisfaction of the shareholder approval condition, the sale is expected to be completed at the end of July 2026. Following completion, the Board will consider options for the most efficient use of the sale proceeds, which may include retaining some proceeds to invest in the growth of the Pharmacy division and a distribution or return of capital to shareholders.The sale will enable Green Cross Health to refocus on its core pharmacy business, which operates a network of pharmacies throughout New Zealand under the Unichem and Life Pharmacy brands.
Interesting to note GXH's current market cap is$215mil,and sale of Medical Division is $270mil.
Well done holders.
Once completed will just be the Pharmacy division. Ripe for Ebos OR Sigma to aquire.
$1.88 per share notional sale price less/plus adjustments.
I pick it will be EBO acquiring the rump after a capital return.
Goodbye Chemist Warehouse NZ supply contract in Dec and hello UniChem / Life Pharmacy.