PureHealth (PUREHEALTH.AD): Strong Q2 Driven by Margin Expansion and UAE Recovery

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PureHealth (PUREHEALTH.AD): Strong Q2 Driven by Margin Expansion and UAE Recovery

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31 Jul 2026 04:19:49 ET │ 10 pages

PureHealth (PUREHEALTH.AD)

Strong Q2 Driven by Margin Expansion and UAE Recovery

CITI'S TAKE

Buy Purehealth reported strong net income growth in Q2 26A at 57% y/y

driven by HHG consolidation and improvement in domestic hospitals Price (30 Jul 26 14:00) Dh2.22

business. Revenues arrived at AED 7.6bn (+9% y/y and +4% q/q) driven by Target price Dh2.90

consolidation of HHG (c.11% of revenues) and impacted by a 4.6% y/y Expected share price return 30.6%

decline in UAE business, insurance continues to grow 11% y/y while UAE Expected dividend yield 1.4%

care business declined 13% y/y on our estimates, which in turn is a result Expected total return 32.0%

of the UPP reclassifications. Gross margin improved 330bps y/y partly on

Market Cap Dh24,667M HHG consolidation (higher margin international business) and

US$6,716M improvement in local hospitals' profitability on better asset utilization and

operating leverage. EBITDA jumped 42% y/y and net income by 57% y/y as

a result of the operational improvement and consolidation. We have a Buy

rating and TP at AED 2.9. Michel SalamehAC

+971-4509-9587

Implications — Strong set of results, with margin improvement positively surprising michel.salameh@citi.com

and driven by the consolidation of higher-margin international operations and

improving profitability in the domestic Care business. UAE hospital operations

benefited from stronger patient activity, higher utilisation and operating leverage

following a softer Q1 that was impacted by regional disruptions, regulatory changes

and seasonality. The sharp improvement in Q2 profitability suggests underlying