ASX:REG

Regis Healthcare Faces Margin Pressure From Inadequate Aged-Care Funding, Jefferies Says

Regis Healthcare (ASX:REG) faces weaker fiscal 2027 earnings growth as the 2.6% increase in Australian National Aged Care Classification (AN-ACC) funding to AU$303.19 per resident per day falls short of rising wage and non-labor costs, Jefferies said in a Sept. 4 note.The investment firm cut its fiscal 2027 earnings before interest, taxes, depreciation, and amortization (EBITDA) growth forecast to 4.2% from over 13%.Jefferies said government funding would need to better account for rising costs in residential aged care, as providers face wage increases from multiple sources alongside broader inflationary pressures.The investment firm noted that AN-ACC pricing has risen steadily since October 2022, with earlier increases supporting mandated care and healthcare inflation, while the latest rise is the lowest annualized increase to date and class weights remain unchanged.It cited the March Stewart Brown survey, which found average direct-care revenue of AU$310.11 per resident per day and a direct-care margin of AU$5.91 per bed day, while 35% of the 1,149 surveyed homes recorded an EBITDA loss as deficits in everyday living and accommodation outweighed direct-care surpluses.Jefferies said the projected rise in Australians needing residential aged care to 400,000 from 200,000 by 2040 highlights the need for more capacity, with just 802 net new beds added in fiscal 2025.Jefferies reaffirmed a buy rating on Regis Healthcare with a price target of AU$7.40.

ASX Biggest Gainers

Here are the ASX-listed companies with the biggest gains on Friday.BCI Minerals (ASX:BCI): +7%, AU$0.58HMC Capital (ASX:HMC): +7%, AU$3.32Orabanda Mining (ASX:OBM): +6%, AU$1.60MAAS Group (ASX:MGH): +5%, AU$5.41DroneShield (ASX:DRO): +5%, AU$1.75Predictive Discovery (ASX:PDI): +5%, AU$4.60Regis Healthcare (ASX:REG): +4%, AU$4.49MA Financial Group (ASX:MAF): +4%, AU$5.35Catapult Group (ASX:CAT): +4%, AU$3.23Sunrise Energy Metals (ASX:SRL): +4%, AU$14.82

Australian Shares Gain; Regis Healthcare Flags Aged Care Funding Rise as Below Cost Inflation

Australian shares rose on Thursday, tracking gains on Wall Street.The S&P/ASX 200 Index gained 0.46%, or 41.70 points, to close at 9,020.10.Overnight on Wall Street, the S&P 500 and the Nasdaq Composite each rose 0.5%, while the Dow Jones Industrial Average gained 0.6%.Brent crude oil futures ​continued to trade around $95 per barrel as the US and Iran continued hostilities.On the domestic front, the S&P Global Australia Services PMI Business Activity Index edged down to 53.2 in August from 53.6 in July, but continued to signal a "solid" expansion in business activity.Australia's goods balance recorded a seasonally adjusted surplus of AU$1.92 billion in July, up from AU$2.34 billion in June, according to data published by the Australian Bureau of Statistics.In company news, Regis Healthcare (ASX:REG) said the Australian Government's 2.55% increase in the Australian National Aged Care Classification starting price to AU$303.19 from AU$295.64 per resident per day from Oct. 1 falls well short of sector cost inflation. Its shares closed down 25%.Santos (ASX:STO) commenced seawater injection at the Nanushuk Drillsite-B of its Pikka oil project on Alaska's North Slope, with injection rates reaching around 40,000 barrels per day following successful milestone testing.Eureka Group Holdings (ASX:EGH) entered into contracts with Ingenia Communities (ASX:INA) to acquire six lifestyle and mixed-use communities in New South Wales comprising 953 sites for AU$123.8 million.

Update: Regis Healthcare Flags Aged Care Funding Rise as Below Cost Inflation, Shares Reach Two-Year Low

(Update to add stock movement in the headline and the fifth paragraph.)Regis Healthcare (ASX:REG) said the Australian Government's 2.55% increase in the Australian National Aged Care Classification starting price to AU$303.19 from AU$295.64 per resident per day from Oct. 1 falls well short of sector cost inflation, according to a Thursday filing with the Australian bourse.The hotelling supplement will remain unchanged at AU$22.15 per resident per day, with care-minute requirements and funding categories also staying the same, per the filing.The company highlighted escalating labor costs, including the 4.75% annual wage review increase, further aged-care wage rises and 3.8% consumer price index growth, while expressing disappointment that government funding does not adequately reflect the underlying cost of care, the filing said.The company said it will continue measures such as increasing room rates and everyday living service fees, optimizing revenue, and improving operational efficiency to mitigate margin pressure, the filing added.Its shares fell over 29% in recent trading on Thursday, reaching the lowest point in over two years.

ASX Biggest Losers

Here are the ASX-listed companies with the biggest losses on Thursday.Regis Healthcare (ASX:REG): -27%, AU$4.29Lindian Resources (ASX:LIN): -9%, AU$0.70Sunrise Energy Metals (ASX:SRL): -8%, AU$14.75EQ Resources (ASX:EQR): -6%, AU$0.36Electro Optic Systems (ASX:EOS): -5%, AU$8.93Lendlease Group (ASX:LLC): -5%, AU$2.84DroneShield (ASX:DRO): -5%, AU$1.64MA Financial Group (ASX:MAF): -3%, AU$5.20Woodside Energy (ASX:WDS): -3%, AU$32.15TechnologyOne (ASX:TNE): -2%, AU$30.70

Regis Healthcare Flags Aged Care Funding Rise as Below Cost Inflation

Regis Healthcare (ASX:REG) said the Australian Government's 2.55% increase in the Australian National Aged Care Classification starting price to AU$303.19 from AU$295.64 per resident per day from Oct. 1 falls well short of sector cost inflation, according to a Thursday filing with the Australian bourse.The hotelling supplement will remain unchanged at AU$22.15 per resident per day, with care-minute requirements and funding categories also staying the same, per the filing.The company highlighted escalating labor costs, including the 4.75% annual wage review increase, further aged-care wage rises and 3.8% consumer price index growth, while expressing disappointment that government funding does not adequately reflect the underlying cost of care, the filing said.The company said it will continue measures such as increasing room rates and everyday living service fees, optimizing revenue, and improving operational efficiency to mitigate margin pressure, the filing added.

ASX Preview: Australian Shares to Rise as Oil Rally, Gold Gains; Regis Healthcare Flags Aged Care Funding Rise as Below Cost Inflation

Australian shares are poised to rise on Thursday, tracking gains in global oil prices as renewed US-Iran military strikes stoked concerns over disruptions to crude supplies through the Strait of Hormuz.Investors are also watching softer US Treasury yields and a weaker dollar, which lifted gold prices, while awaiting US payrolls data for clues on the Federal Reserve's interest-rate path.Overnight, the S&P 500 and the Nasdaq Composite each rose 0.5%, while the Dow Jones Industrial Average gained 0.6%.In the macroeconomy, Australia's services sector expanded for a third straight month in August, supported by stronger new orders, hiring and improving business confidence, even as rising fuel and wage costs pushed input price inflation higher, according to a monthly survey by S&P Global released Thursday.In corporate news, Regis Healthcare (ASX:REG) said the Australian Government's 2.55% increase in the Australian National Aged Care Classification starting price to AU$303.19 from AU$295.64 per resident per day from Oct. 1 falls well short of sector cost inflation.Vault Minerals (ASX:VAU) delivered group mineral resources of 12.1 million ounces of gold and ore reserves of 3.9 million ounces of gold as of June 30.Australia's benchmark index fell nearly 1%, or 88.3 points, to close at 8,978.40 on Wednesday.

Regis Healthcare Appoints CFO

Regis Healthcare (ASX:REG) appointed Stuart Hooper as chief financial officer, effective Sept. 1, according to a Monday filing with the Australian bourse.Hooper most recently served as CFO at Bupa Asia Pacific, the filing said.Hooper will succeed Rick Rostolis, who will retire on Aug. 31, the filing added.

Regis Healthcare Fiscal 2026 Underlying Earnings, Revenue Up

Regis Healthcare (ASX:REG) logged AU$0.1842 in underlying earnings per basic share for fiscal 2026, compared with AU$0.1773 a year ago, a Monday filing showed.For the 12 months ended June 30, revenue from ordinary activities was AU$1.35 billion versus AU$1.16 billion previously, the Australia-listed healthcare company added.The board declared a final dividend of AU$0.094 per share, up from AU$0.0813 a year earlier, payable Sept. 23 to shareholders on record as of Sept. 9.

Australian Shares to Open Lower; Westpac Completes Sale of Home Loan Portfolio to Consortium Including Pepper Money

Australian shares are poised to open lower on Monday, as investors react to the uncertainty around a resolution to the conflict in the Middle East after US President Donald Trump said he cancelled strikes on Iran after Iran and other Middle Eastern countries had asked for time to complete a peace deal.On July 31, the Nasdaq Composite rallied 1% on the back of strong earnings from tech giants, while the S&P 500 and the Dow Jones Industrial Average rose 0.7% and 0.5%, respectively.In the macroeconomy, investors are eyeing the release of the Melbourne Institute monthly inflation gauge report and Cotality's house prices data.In corporate news, Westpac Banking (ASX:WBC, NZE:WBC) completed the sale of the RAMS home loan portfolio, around AU$15.4 billion at completion, to a consortium consisting of Pepper Money (ASX:PPM), credit funds and accounts managed by KKR, and PIMCO managed funds.Regis Healthcare (ASX:REG) struck a deal to acquire the business and assets of Royal Freemasons Homes of Victoria's Home Care, a not-for-profit provider of at-home support services.Australia's benchmark index was little changed to close at 8,976.80 on July 31.

Regis Healthcare to Acquire Royal Freemasons Homes of Victoria's Home Care

Regis Healthcare (ASX:REG) struck a deal to acquire the business and assets of Royal Freemasons Homes of Victoria's Home Care, a not-for-profit provider of at-home support services, according to a Monday filing with the Australian bourse.The target business has about 480 clients and is expected to increase Regis Healthcare's home care revenue by over AU$10 million, taking annualized revenue to about AU$50 million, per the filing.The deal will be financed using existing cash and is expected to complete in the second quarter of fiscal year 2027, subject to regulatory approvals, the company said.

ASX Biggest Gainers

Here are the ASX-listed companies with the biggest gains on Friday.Coles Group (ASX:COL): +3%, AU$23.31Xero (ASX:XRO): +3%, AU$71.17Woodside Energy Group (ASX:WDS): +3%, AU$30.27AMP (ASX:AMP): +3%, AU$1.95Amcor (ASX:AMC): +3%, AU$63.72Generation Development Group (ASX:GDG): +3%, AU$3.57Regis Healthcare (ASX:REG): +3%, AU$6.15GQG Partners (ASX:GQG): +3%, AU$1.41News Corp (ASX:NWS): +2%, AU$46.69Guzman y Gomez (ASX:GYG): +2%, AU$21.74

Regis Healthcare's RAD Retention Revenues Expectations Delayed Amid Staggered Admissions, Says Jefferies

Regis Healthcare (ASX:REG) is expected to lag in delivering expected refundable accommodation deposit (RAD) retention revenue due to the staggered timing of resident admissions, according to a Wednesday Jefferies note.The sector is still awaiting aged care funding reforms to improve long-term sustainability, the note added.Regis continues to benefit from record-high occupancy levels, supporting a positive demand outlook, Jefferies said.Jefferies maintained a buy rating on Regis Healthcare and cut its price target to AU$8 from AU$9.

Regis Healthcare CFO to Retire

Regis Healthcare (ASX:REG) said Chief Financial Officer Rick Rostolis has advised the board of his decision to retire, effective Aug. 31, according to a Monday Australian bourse filing.The company has started the process of appointing a successor, the filing added.

UBS Starts Regis Healthcare at Neutral with AU$7 Price Target

ASX Biggest Gainers

Here are the ASX-listed companies with the biggest gains on Wednesday.Wisetech Global (ASX:WTC): +13%, AU$32.51BCI Minerals (ASX:BCI): +11%, AU$0.42Anteris Technologies (ASX:AVR): +10%, AU$14.99Xero (ASX:XRO): +8%, AU$70.31Telix Pharmaceuticals (ASX:TLX): +7%, AU$15.54Neuren Pharmaceuticals (ASX:NEU): +5%, AU$12.99Tasmea (ASX:TEA): +5%, AU$9.45Lindian Resources (ASX:LIN): +5%, AU$0.92Regis Healthcare (ASX:REG): +4%, AU$6.53Iluka Resources (ASX:ILU): +4%, AU$7.54

Jarden Research Downgrades Regis Healthcare to Neutral from Overweight; Adjusts Price Target to AU$7.50 from AU$8.20

Regis Healthcare Faces Headwind as HELF Adoption Falls Short of Expectations, Says Jarden

Regis Healthcare (ASX:REG) faced the impact of the adoption of the Higher Every Day Living Fee Package (HELF) not being as robust as first anticipated, according to a Thursday Jarden note.Jarden said the introduction of a decision for incoming residents on whether to take up the package has seen some opting down and opting out, which is likely to be a headwind for fiscal year 2027 and fiscal year 2028, prompting the downgrade until the HELF impact is fully understood.Jarden downgraded Regis Healthcare to neutral from overweight and cut its price target to AU$7.50 from AU$8.20.

Regis Healthcare to Benefit from Higher Govt Spending on Aged Care, Says Jefferies

Regis Healthcare (ASX:REG) is expected to reap benefits from higher government funding into aged care sector, Jefferies said Monday in a note, adding that it is awaiting clarity from the upcoming federal budget announcement this month.The government has announced plans for a AU$3 billion investment in aged care, which includes an increased accommodation supplement.The investment firm assumes that if 40% of Regis' residents received a AU$15 higher daily accommodation supplement, the company could see around a 10% boost in EBITDA per place over 12 months. Regis expects fiscal 2026 underlying EBITDA of around AU$135 million.Jefferies is also confident in the company's fiscal 2027 outlook despite near-full occupancy as Regis continues to expand its portfolio and increase the proportion of residents paying Refundable Accommodation Deposit (RAD). The company reported average occupancy of 95.9% in mature homes in the third quarter.Jefferies maintained a buy rating and increased its price target by 35% to AU$9.

Regis Healthcare Expects Fiscal 2026 Underlying EBITDA at Top End of Guidance

Regis Healthcare (ASX:REG) said it expects fiscal 2026 underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) of about AU$135 million, at the top end of guidance, according to a Thursday Australian bourse filing.Occupancy across mature homes averaged about 96% in the fiscal third quarter, per the filing.The company said it generated net refundable accommodation deposit (RAD) cash inflows of AU$44.5 million in the third quarter, taking the total net RAD cash inflows for the year to date to AU$223 million.As resident turnover occurs, the progressive repricing of existing paid-up RADs to current advertised room prices is expected to generate net operating cash inflows of about AU$400 million over time while also increasing RAD retention earnings, the company added.