Healthcare sector earnings set to pick up pace

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Earnings prospects for the healthcare sector are looking positive for the longer period on higher demand.

Although recovery in inpatient volume is only expected to be modest in 2021, AmInvestment Bank said earnings are set to pick up due to potential public-private collaborations, improved margins as a result of cost-cutting measures and a focus on low capex and gestational period projects.

So far, the government has procured Pfizer, AstraZeneca and COVAX-sourced vaccines for 40% of the population. It is in negotiations with CanSino, Sinovac and the Gamaleya National Centre to provide vaccines for another 40% of the population. The vaccine supply chain is expected to benefit a number of companies including those not directly involved in healthcare.

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