The Pro Medicus Ltd (ASX: PME) share price went up as investors liked what they saw in the FY23 half-year result.
Pro Medicus is a ASX healthcare tech share that provides a full range of radiology IT software to hospitals, imaging centres and so on, with its cloud offering called Visage.
HY23 result
Here are some of the highlights from the FY23 half-year result:
- Revenue jumped by 28.3% to $56.9 million
- EBIT (EBIT explained) margin of 66.1%
- Underlying profit before tax improved 30% to $37.2 million
- Net profit after tax (NPAT) rose 31.5% to $27.2 million
- Half-year dividend up 30% to $0.13 per share
The business continues to win new contracts, such as the University of Floria contract renewal for another seven years, with a minimum value of A$15.5 million.
Pro Medicus continues to win new contracts in the North American market, with three major implementations completed, including Novant Health. The ASX healthcare share is actively pursuing a “growing number of opportunities” in key markets.
With the business continuing to invest significantly in research and development in Australia and overseas, this could help maintain and grow the business.
Outlook for the Pro Medicus share price
The CEO Dr Sam Hupert thinks that the second half could be even better, with those three large implementations in the first half, which will now provide a full six months of transaction volumes in the second half, as well as other smaller sites that were brought online.
Pro Medicus thinks that clients will continue to want multiple products from Pro Medicus, provided through the cloud, which is “very positive” for the company.
The business is also looking expand in Europe, and there are “early signs” that the market is catching up. A growing acceptance of cloud offerings could also help.
Pro Medicus could be the best business on the ASX. But, it also comes with a very high price/earnings ratio (p/e ratio).
I think the ASX healthcare share’s profit can continue to perform exceptionally well, but without a crystal ball it’s difficult to know if a more attractive price is coming. I’d be patient and wait for a lower buying price, considering interest rates are still going higher.
