Life Healthcare (LHC) is the second-largest, JSE main-board listed, healthcare company with private hospitals, same-day clinics and surgeries and healthcare companies in South Africa, the UK (Alliance Medical), and Western Europe.
The out-going CEO, Shrey Viranna, says that the group is trying to diversify away from conventional hospitals more towards day-clinics and non-acute services. It is also trying to diversify away from medical aid schemes towards people who pay for their medical attention out of their own pockets. They have launched MyLife Clinic which offers a consultation and basic medication for R300.
In its results for the year to 30th September 2023 the company reported revenue up 10,3% and headline earnings per share (HEPS) down 16,9%. The company said, "The Group's SA operations experienced strong demand for their services in the current year driven by the Group being the preferred network provider for medical aids. This led to higher utilisation of the Group's hospitals and complementary services which delivered PPD growth of 9.5%."
In a trading statement for the six months to 31st March 2024 the company estimated that earnings per share would increase by more than 20% due to the disposal of Alliance Medical Group. This will not affect HEPS, however.
In its results for the year to 30th September 2024 the company reported revenue up 12,7% and headline earnings per share (HEPS) up 73,4%. The company said, "NEPS, which excludes non-trading related items, increased by 48.5% to 132.3 cents (2023: 89.1 cents). The LMI RM2 transaction contributed 30.1 cents net after tax."
In a trading statement for the six months to 31st March 2025 the company estimated that it would make a headline loss of between 150,9c and 158,7c compared with a profit of 65,2c in the previous period.
Technically, the share peaked at R47 in September 2014 and then entered a long downward trend. It is now trading for around 1380c and is on a P:E of 10,6. The multiple reflects the share's defensive nature and its overseas diversification – which gives it some rand-hedge characteristics. It has not yet broken up through its long-term downward trendline.
In our view, this share looks like reasonable value.
The out-going CEO, Shrey Viranna, says that the group is trying to diversify away from conventional hospitals more towards day-clinics and non-acute services. It is also trying to diversify away from medical aid schemes towards people who pay for their medical attention out of their own pockets. They have launched MyLife Clinic which offers a consultation and basic medication for R300.
In its results for the year to 30th September 2023 the company reported revenue up 10,3% and headline earnings per share (HEPS) down 16,9%. The company said, "The Group's SA operations experienced strong demand for their services in the current year driven by the Group being the preferred network provider for medical aids. This led to higher utilisation of the Group's hospitals and complementary services which delivered PPD growth of 9.5%."
In a trading statement for the six months to 31st March 2024 the company estimated that earnings per share would increase by more than 20% due to the disposal of Alliance Medical Group. This will not affect HEPS, however.
In its results for the year to 30th September 2024 the company reported revenue up 12,7% and headline earnings per share (HEPS) up 73,4%. The company said, "NEPS, which excludes non-trading related items, increased by 48.5% to 132.3 cents (2023: 89.1 cents). The LMI RM2 transaction contributed 30.1 cents net after tax."
In a trading statement for the six months to 31st March 2025 the company estimated that it would make a headline loss of between 150,9c and 158,7c compared with a profit of 65,2c in the previous period.
Technically, the share peaked at R47 in September 2014 and then entered a long downward trend. It is now trading for around 1380c and is on a P:E of 10,6. The multiple reflects the share's defensive nature and its overseas diversification – which gives it some rand-hedge characteristics. It has not yet broken up through its long-term downward trendline.
In our view, this share looks like reasonable value.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.