Fight­ing fit

Finweek English Edition - - Companies&markets -

TRAD­ING AT around 1350c and on a mul­ti­ple of 17 times, Net­care – worth al­most R20bn on the JSE – is ex­pen­sive and trad­ing close to its best lev­els in 12 months. How­ever, the share has proven to be rel­a­tively de­fen­sive over the past year, as it’s with­stood the short-term pull­backs in eq­uity mar­kets and has seen a sus­tained rally from its low of 880c a year ago to cur­rent lev­els.

Prospects for pri­vate health­care in both its pri­mary mar­kets – South Africa and Bri­tain, where it has a con­trol­ling stake in Gen­eral Health­care Group (GHG) – re­main strong. Grow­ing pres­sure on the wel­fare state in Bri­tain, par­tic­u­larly its Na­tional Health Ser­vice (NHS), means a ris­ing de­pen­dence on the pri­vate sec­tor.

In SA, Govern­ment’s been forced to ac­knowl­edge the role of the pri­vate sec­tor in not only main­tain­ing stan­dards but also de­liv­er­ing many of the cut­ting edge ser­vices

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