Singapore Stock Market News

IHH Healthcare - Champion calibre

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Publish date: Wed, 28 Aug 2013, 08:33 AM
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IHH continued to execute all of its new operations successfully. The latest includes an operational breakeven point in the shortest amount of time for its hospitals in Singapore and Turkey. The group is also less sensitive to the potential decline in revenue from Indonesian patients.

2Q13 and 1H13 core earnings were in line, accounting for 22% and 37% of our FY13 numbers. However, we cut FY13-15 estimates by 7-9% as we see more start-up and other opex costs going forward. Our SOP-based target price is reduced as a result. We keep our Outperform rating as we expect a more robust ramp-up of the group's global operations.
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