Singapore Stock Market News

IHH Healthcare - Dawn of the giants

StockFanatic
Publish date: Mon, 27 May 2013, 12:30 PM
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We stuck our necks out when we predicted that Mt. Elizabeth Hospital is close to operational breakeven. We are vindicated by the 1Q13 results. This is just the beginning. We see more room for IHH to strengthen and deliver its best year ever.

1Q13 core earnings of RM134m (+17% yoy) or 15% of our FY13 numbers are in line as we expect a greater shift up in contributions from Novena and the two new Turkish hospitals in the next nine months. We retain our EPS estimates and Outperform rating as we see a better ramp-up of its operations. Our SOP target price is lifted in recognition of its good execution.
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