Apex’s earnings potential to improve with strong sales, says osk research
Posted on August 4, 2012, Saturday
KUALA LUMPUR: OSK Research Sdn Bhd (OSK Research) is optimistic Apex Healthcare Bhd (Apex) has potential for future earnings in view of its continuous strong sales.
“Going forward, we expect the group’s earnings to grow at a compounded annual growth rate of 16.6 per cent,” it said in a research note.
Besides strong sales, the healthcare group would also benefit from higher contributions from its own-brand products, higher margins, prudent management, solid balance sheet and potential business opportunities from off-patent drugs sales.
“We also like Apex for its good dividend payout track record and for the last five years the company has been consistently paying dividends of above 40 per cent.
“Going forward, we expect the group to maintain a dividend payout of between 45 per cent and 55 per cent, translating into dividend yield of above 6 per cent,” the research house added.
OSK Research had initiated a coverage on the group with a ‘buy’ call at RM3.84 per share. — Bernama