(The Group's Comment)  Medicare Group Net Profit Rises 5.6% to QR 84.51 Million


January 31, 2019


 Profit: The Company's profits amounted to QR84.51 million in 2018, compared to QR80.00 million in 2017, up by 5.64%.  Profit realized in the last fourth quarter was QR43.76 million, compared to QR43.75 million in the fourth quarter of 2017. Earnings per share hit QR 3.00 per share, compared to QR2.84 per share in 2017.
 
Revenues: It increased by 2.89% in 2018 to QR 484.21 million, compared to 470.62 million in 2017. The operating costs to revenues ratio reached 58.89%. The profit margin ratio was 41.11% for 2018, while the operating cost to revenues ratio reached 57%, with gross profit margin at 43% in 2017.
 
Comprehensive Income:  Total comprehensive income amounted to QR130.92 million in 2018, compared to QR 71.44 million at the end of 2017. The statement of comprehensive income shows an increase in the fair value of property and investments by QR 46.38 million  in 2018, compared to a decline of QR 8.56 million 2017.
 
Assets: The assets of the company at the end of 2018 amounted to QR 1,207.85 million compared to 1,001.75 million at the end of 2017. Net fixed assets constitute about 82.56% of the total assets. Receivables item is of importance and impact on the company's profits, and it stood at QR168.75 million in 2018.  Net receivables (deducting provision) amounted to QR 93.36 million, ie, about 45% of receivables are doubtful. It is worth noting that the company deducted an amount of QR 16 million as provision for the latter in 2017,  compared to QR 1million 2018.
  
 Shareholders 'Equity: It reached QR 1,017.98 million at the end of 2018, compared to QR 1,001.75 million at the end of 2017. The return on equity was about 8.30% in 2018, and the book value of the share was QR 36.17 per share.
 
Dividends: The Board of Directors recommended to the General Assembly the distribution of 30% (4.55% dividend yield) of the nominal value of share capital as cash dividends for 2018, compared to 40% in 2017.
 
The stock is currently traded at a PE multiple of 22.00 times, and a book value multiple of 1.83 times.