Austco Healthcare Limited

Section 1: Company Overview and Fundamentals Insights

1.1 Company Overview

Manufacturing, supplying, and distributing company, Austco Healthcare Limited (ASX: AHC) is involved in the field of healthcare equipment and services. AHC has subsidiaries in six countries and covers a large market, including Australia, Canada, New Zealand, the UK, Asia, the USA, and the Middle East.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders: The top 10 shareholders together form ~65.91% of the total shareholding. Grey (Robert Edward) and Australian Ethical Investment Ltd. are holding a maximum stake in the company at ~19.23% and ~14.44%, respectively.

1.4 Key Metrics:

During 1HFY22, the company recorded an ROE of 7.4% against 5.1% in 1HFY21. In addition, the EBITDA margin for the half-year period stood at 15.2% as compared to 10.7% in 1HFY21.

Section 2: Business Updates and Financial Highlights

2.1 Business Updates:

 2.2 1HFY22 Results Highlights (Period Ended 31 December 2021): The company’s open sales order book exhibits a growth trajectory, and came in at $24.5 million in 1HFY22, up from $20.1 million reported in August 2021. Cashflow from operating activities was positive $0.4mn for the period.

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

4.2 Stock Summary

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: The reference data in this report has been partly sourced from REFINITIV

Note 2: Investment decisions should be made depending on the investors’ appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the analysis has been achieved and subject to the factors discussed above alongside support levels provided.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.

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