Ramsay Health Care: Activity up; Asian JV sold; going digital for the future

About the author:

Author name:

By Dr Derek Jellinek

Job title:

Senior Analyst

Date posted:

15 November 2023, 7:00 AM

Sectors Covered:

Healthcare

• Ramsay Health Care (ASX:RHC) investor day and site tour emphasised Australian operations and its digital ambitions, while the recent Asian JV sale helps jump-start B/S repair.
• Promisingly, activity in Australia is trending favourably across most specialties, with improving volumes expected to continue to drive top line growth.
• While higher volumes and efficiency gains should support operating leverage, it is held in check over the near term as management embarks on a 5-year strategic plan to build the best-in-class, digital-enabled integrative health care system.
• While we view the building blocks and clear approach to this digital transformation as reasonable, it is a complex and ambitious plan, so difficult at this early stage to gauge how implementation and buy-in will play out and what the returns will be.
• We adjust FY24-26 earnings, with our price target decreasing to (login to view). Add.

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