FPH - Fisher Paykel Healthcare Corp

[Shareguy]

$27.55. Go you good thing.

[Waltzing]

amazing from low 18... some will have made a ton on this move...

with such rare performance in the NZX .

[Shareguy]

Craig's Latest note out today.  Its a downgrade and say "we no longer believe that FPH is likely
to upgrade FY23 revenue guidance"

High expectations built into the current share price. FY23 PE60

Have just trimmed my holding.

[Left Field]

Large investment for the future of FPH and their proposed Karaka campus.....

https://www.nzx.com/announcements/410530

Auckland, New Zealand, 27 April 2023 - Fisher & Paykel Healthcare Corporation Limited announced today it has received approval from the Overseas Investment Office (OIO) to proceed with its acquisition of a 105-hectare site in Karaka, Auckland.

The purchase of the Karaka land will be funded through a combination of operating cash flow and debt facilities. In recent months, the company has secured additional debt funding with a number of leading banks. As at 31 March 2023, the company had total available committed debt funding of $704 million, of which approximately $620 million was undrawn.

A 10% deposit of the $275 million purchase price was paid in September 2022. The balance will be paid on staggered settlement dates, with $189.5 million to be paid in May, a further $43 million paid in January 2026 and the final instalment of $15 million in December 2026. A summary of the key terms of the sale and purchase agreement are available in the company's news release dated 1 September 2022.

[Shareguy]

From Craig's this morning

•   FPH – CPAP market leader Resmed has reported strong 3Q23 results, with mask sales up +15% YoY ccy and hardware sales up an impressive +43% YoY ccy, a 2-year and 10-year high, respectively. This result was driven by (i) strong patient demand, (ii) alleviation of shortages previously limiting production of fully functioning devices, with Resmed indicating they can only now meet demand, (iii) continued market share loss from the #2 hardware player, Philips, in line with management commentary at their 1Q23 result earlier this week. This result is in-line with our expectations for a strong 2H for FPH's OSA division which accounted for around 1/3 of total revenue in 1H23. As a reminder, at its Jan-23 guidance FPH noted its OSA mask sales (c.85% of homecare revenues in 1H23) were up 10% YoY ccy in the half-to-date. We expect this to accelerate to 21% YoY ccy off the back of (i) increased supply of hardware, especially Resmed devices, increasing the market size for FPH's masks, (ii) general improvement in customer engagement with DME stores now full re-opened and (iii) OSA mask market share growth for FPH's Evora Full mask

[KW]

Stocks love to "close gaps", and FPH is no exception.  Its just that closing gaps can take time, as they often set up strong resistance levels that impede a move higher.  You can see this play out with FHP trying to get through the several resistance levels that were set up from that volatile March period last year.  So the good news is that FPH has finally smashed through it. 

You cannot view this attachment.

[Left Field]

Thanks for the helpful graph KW. I hope it is 'onwards and upwards' from here.

Short term there may be more SP fluctuations until the next update as PE looking toppy.

Long term, no worries.

[Shareguy]

Craig's downgrade in latest

Investors should consider taking profits ahead of May 26 result
We maintain our Neutral with target price -2% to $24.94 on lower earnings.
FPH shares have rallied c.20% since the January upgrade and are now trading
on 50x FY24e PE, with the market now arguably anticipating a "beat and
raise" at the upcoming result on May 26 which is looking less likely. We think
investors should consider taking some profits at current level

[winner (n)]

Even Kingfish have 'trimmed their position' on FPH (April update)

[Onemootpoint]

Sage advice perhaps. Not a reflection on the company....but as mentioned above the P/E perhaps a bit high again. Can always buy back when the time is right.
It is looking a bit expensive at the moment after it's quick move upwards.

[BlackPeter]

Sage advice perhaps. Not a reflection on the company....but as mentioned above the P/E perhaps a bit high again. Can always buy back when the time is right.
It is looking a bit expensive at the moment after it's quick move upwards.

Agreed (and currently not holding myself). On the other hand ... it seems to be one of FPH's attributes to look a bit dear if measured against PE and historical growth rates. Market seems to price in some enormous future growth rates ... and it always does ...

[Shareguy]

Craig's said today
•   FPH – Key Obstructive Sleep Apnoea (OSA) competitor Philips Respironics announced yesterday that internal testing on 95% of its hardware indicated that usage was "unlikely to result in an appreciable harm to health in patients". As a reminder, the OSA market (which makes up about 1/3 of FPH revenues) has been severely constrained by a lack of hardware, used to (i) diagnose new patients and (ii) resupply existing patients, since Philips found that foam insulation in some of their hardware could degrade and enter users' lungs, initiating a recall of 5.5m units of hardware from June 2021. Yesterday's update makes it more likely Philips' OSA hardware will return to market sooner, which will 1) increase the supply of OSA patients, acting as a tailwind for FPH's OSA consumable sales, but 2) increase competitive pressure in the OSA hardware space, acting as a headwind to FPH's OSA hardware sales. Given 80+% of FPH OSA revenue is derived from consumable sales, we see this announcement as incrementally positive for FPH. Indeed, we have been expecting FPH to gain share in the OSA consumables space from their popular Evora Full mask. Philips' update gives us further confidence in our expectations for good FPH homecare segment growth, with our FPH homecare revenue estimates 16% above consensus in FY24.Nonetheless, we maintain our expectation for modest overall growth in FY24 as the hospital segment will be lapping a strong flu season and China Covid demand. We re-iterate that given (i) a weak revenue print from key hospital segment comparator company Vapotherm, and (ii) a more rapid than expected decline in US and Chinese respiratory hospitalisations, we expect FPH's FY23 revenue to be $1,558m, at the bottom end of the $1,550 – 1,600m range.

[Left Field]

Results down on my expectations.... but a promise to return to normal future revenue/margin growth after covid disruptions....Divvy up a smidgen. No need for holders to panic!

https://www.nzx.com/announcements/412082

Overview of key results for the second half of the 2023 financial year
• 14% growth in operating revenue to $890.5 million, 12% growth in constant currency.
• Net profit after tax of $154.4 million, a decline of 0.5% or 3% in constant currency.
• 9% growth in Hospital operating revenue to $584.8 million, 7% growth in constant currency.
• 13% constant currency revenue growth for new applications consumables; i.e. products used in noninvasive ventilation, Optiflow nasal high flow therapy and surgical applications, accounting for 72% of Hospital consumables revenue.
• 25% growth in Homecare operating revenue to $303.9 million, 22% growth in constant currency.
• 28% growth in OSA masks revenue, or 24% growth in constant currency.

Overview of key results for the 2023 financial year
• 34% decline in net profit after tax to $250.3 million, 39% decline in constant currency.
• 6% decline in operating revenue to $1.58 billion, 9% decline in constant currency.
• 15% decline in Hospital operating revenue to $1.02 billion, 18% decline in constant currency.
• 6% constant currency revenue decline for new applications consumables.
• 18% growth in Homecare operating revenue to $553.8 million, 13% growth in constant currency.
• Investment in R&D was 11% of revenue, or $174.3 million.
• 2% increase in final dividend to 23.0 cps (2022: 22.5 cps).
• 3% increase in total dividends for the financial year to 40.5 cps (2022: 39.5 cps).

Outlook for the 2024 financial year

At current exchange rates*, guidance assumptions for the 2024 financial year include no significant respiratory disease events, and result in full year operating revenue of approximately $1.70 billion, with approximately similar revenue growth rates for both Hospital and Homecare product groups.

[winner (n)]

Hey leftie

What you make of guidance single digit growth company trading at 60 times earnings

[Breezy]

Future looks very bright to me, $50 in 4 yrs.