Is it a structural issue on the JSE when a business reports a Net Asset Value (NAV) of around R16 per share but is trading at under R2?
This is the question that needs to be asked when looking at a business like JSE-listed RH Bophelo which operates in the healthcare sector. As a black-owned healthcare group, RH Bophelo offers a unique entry point into the healthcare sector, but will it succumb to a lack of investor interest?
The company recently released financial results for the financial year ended February 2025.
Highlights from the results included:
- Investment income decreased when compared to the prior period from an investment income of R280.4 million to a net investment income of R106.2 million due to the stabilization of assets;
- Total income after tax decreased when compared to the prior period from a profit of R182.6 million to a profit of R43.9 million;
- Basic earnings per share and headline earnings per share decreased when compared to the prior period from earnings of 282.3 cents per share to earnings of 67.9 cents per share;
- Net asset value increased by 4% when compared to the prior period from R1 034 million to R1 078 million;
- Net asset value per share and tangible net asset value per share increased by 4% when compared to the prior period from R15.99 to R16.67 per share;
You can read the full short-form results here.
In our latest video, CEO Marc Ashton speaks to RH Bophelo Chief Financial Officer Yondie Metu:
The interview looks at:
- The financial results for the year ended February 2025
- The numbers that matter in the world of RH Bophelo
- What differentiates RH Bophelo from the other listed hospital groups
- The RH Bophelo listing on the #Rwanda Stock Exchange
- The deep discount to NAV
About RH Bophelo
RH Bophelo Limited (RH Bophelo) listed on the Johannesburg Stock Exchange (JSE) in July 2017 raising in excess of R500 million and providing investors with an alternative healthcare opportunity in the listed healthcare space.
The company strategy is to identify strategic investment opportunities in the healthcare industry while also creating an ecosystem designed to optimise synergies that deliver value to South Africans in the lower to middle-income brackets.
RH Bophelo has made nine acquisitions since its inception in 2017, giving the company access to 665 beds, 8 hospitals within four provinces, a nursing college, emergency services, pharmacy, complete facilities management, hospital management, healthcare insurance and emergency administration services.
About the “Meet the Management” series:
With business media newsrooms under enormous pressure in South Africa, very few of the smaller and mid-cap businesses receive any tangible media coverage as there simply aren’t the resources to commit to covering these businesses.
We have made a commitment to try and assist JSE and Cape Town Stock Exchange (CTSE) listed businesses as well as South African venture capital firms to helped them share their news and stories.
During our time of running this series, we have hosted a variety of guests across our platforms including interviews with businesses including:
- Capital Appreciation
- Altvest Capital
- OneLogix
- Calgro M3
- GAIA Investment Managers
- ARB Holdings
- Homechoice International
- Alt Capital Partners
- Kalon Venture Partners
By giving back to our ecosystem, we provide a channel in which businesses can engage with their stakeholders and share their stories.
We have a number of other exciting guests lined up and you can follow via our website or our YouTube channel.
Would you like to feature on “Meet The Management” or discuss a stakeholder communication strategy for your business?
We want to see a thriving investor ecosystem where organisations can communicate their strategies to their stakeholders.
If you would like to connect with our team, please find our contact details here. We would be happy to setup an online call or host you at our office in Rosebank, Gauteng.