Key message: ACT experienced a challenging H1, with normalised diluted HEPS down 10% y/y, although we estimate a decline of only 3% (excluding NH legal costs). Significant increase in receivables explains the increase in gearing and results in dividends being suspended and to be reviewed in June. Sanlam transaction on track to close in CY Q2 23E.
Key message: Once off impact from COVID vaccine weighs on Services Business, while profit contribution from Retail continues to increase. Sanlam relationship appears to be gaining further traction. Gearing remains well managed and dividends stable.
Key message: H1 22A results benefitted from Pharma diversification. Excluding once offs, normalised HEPS would have increased by 19% y/y (H1 22A: flat). Interim DPS was stable at ZAr 17/share.
Key message: Most diversified healthcare company in SA remains focussed on growth and creating value for shareholders on undemanding valuation multiples.