Singapore Stock Market News

Health Management International - Insured against market volatility

StockFanatic
Publish date: Mon, 16 Jul 2018, 12:46 PM
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■ We expect HMI to report a 4QFY6/18F core PATMI of RM12.5m (+20% yoy), which is a seasonally-weaker quarter due to the Ramadan effect.

■ The recent majority stake acquisition in StarMed marks its return to Singapore's private healthcare, enabling it to leverage on rising popularity of day procedures.

■ The removal of the 6% GST in Malaysia could lift some pressure off margins, while HMI's affordable pricing could fend off competition from more public hospitals.

■ At 22x forward P/E (45% discount to regional peers), HMI offers greater value with 42.9% 3-year EPS CAGR vs. regional peers' 12.2% average.

Maintain Add. HMI remains our top small-cap pick in the healthcare sector - Read More
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