The medical diagnostics service Integrated Diagnostics Holdings (IDH) has reported its first quarter (Q1) of 2021 performance, noting that it was as strong as that of Q4 of 2020. The company added that this was especially with regards to the volumes of PCR tests and other tests related to the novel coronavirus (COVID-19) pandemic. The IDH Management expects the same trend for 2021, highlighting that PCRs might decrease starting from Q4 of 2021 depending on vaccination rollout. The company's medium-term expansion plan encompasses adding 30-35 new pathology lab branches in Egypt per annum. In addition, the group is expected to inaugurate the third branch of Al Borg Scan next month, as part of its plan to reach six branches by 2022. Meanwhile, the management expects the year-on-year (y-o-y) percent growth in the company's top line to range between the late teens and early twenties. At the same time, margins are expected to remain healthy, with the EBITDA margin over 40% in 2021. Capex would remain within the normal range of 5.5% of sales. In addition, IDH is securing a cash reserve for potential merger and acquisition (M&A) opportunities, which would be announced when possible. IDC is currently trading at a 2021 P/E of 14.9x and EV/EBITDA of 8.0x. It witnessed exceptional top and bottom line performance in Q4 of 2020, fuelled by an adaptive offering of services, in addition to strong demand for PCRs and other related tests. Revenues were up 71% y-o-y in Q4 of 2020, recording EGP 986m, whilst COVID-19-related revenues contributed 41% to the Q4 of 2020 top-line, noting that the contribution of PCRs alone was 31%.
