Pro Medicus Limited (ASX: PME) shares have continued their record-breaking run on Monday.
In morning trade, the health imaging technology company's shares have risen over 2% to a record high of $226.79.
This means that its shares are now up a staggering 160% since this time last year.
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Why are Pro Medicus shares breaking records today?
Investors have been buying the company's shares this morning following the release of its annual general meeting presentation before the main event.
While that presentation focused a lot of what happened in FY 2024, there was also commentary on the future that appears to have got investors excited.
But let's start with a look at the last financial year. Commenting on the 12 months, Pro Medicus' chair, Peter Kempen, said:
FY2024 was another record year for the company with revenue increasing by 29.3% to $161.5 million and net profit after tax increasing by 36.5% to $82.8 million. The Company continued to be cash flow positive with retained cash and liquid investments increasing from $121.5 million to $155.4 million, after a A$2.77m buyback of shares in February/March, a $US5m investment in cardiac CT AI company Elucid and paying increased dividends.
Pleasingly, Kempen then stated that "the Board anticipates FY25 will be another strong year." He then adds:
The budget for the current financial year has been determined recognising anticipated continuing strong growth, from both existing and new clients. I am pleased to advise that results to date are ahead of budget on a constant currency basis and an Australian dollar basis, despite some volatility in currency markets during the period. We anticipate that the second half of the financial year will be stronger than the first half, as is traditionally the case.
Big future
Also giving Pro Medicus shares a boost is likely to be a part of its presentation which focuses on its total addressable market (TAM).
The company notes that it has a huge TAM in the United States. It highlights that there are 650 million exams performed each year and this is growing by 2% to 3% per annum.
It points out that Pro Medicus' best in class Visage platform is able to address 100% of this TAM from a product perspective and 85% from a commercial perspective.
Whereas at present, its current penetration is just a modest but lucrative 7%. It believes this provides it with a "large addressable runway." Management also sees opportunities to leverage artificial intelligence to drive further growth.
All in all, the future looks bright for Pro Medicus and its shares.
