Kenanga starts IHH with ‘market perform’
KUALA LUMPUR, Feb 21 — Kenanga Research started IHH Healthcare Bhd, Asia’s largest hospital operator, with a “market perform” call and a target price of RM3.51 a share, citing stable growth in the global healthcare industry.
The group offers investors exposure to a network of “healthcare jewels” across Malaysia, Singapore and Turkey.
“Despite the scarcity premium that we have attached to IHH units given its sheer size, commanding market position and superior growth potential, IHH is currently trading close to our target price,” Kenanga said in a note today.
IHH’s capital expenditure needs are expected to range between RM600 million and RM800 million per annum in 2013 and 2014, Kenanga added. IHH’s growth-driven plans include delivering 3,300 new beds by expanding its existing facilities and two potential projects in Turkey.
The research house forecast a net profit growth of 60 per cent in the financial year 2013 and 19 per cent in 2014, driven by its planned pipeline of hospitals expansion, higher medical fees and a rising volume of patients.
IHH shares inched down 0.9 per cent against the Malaysian benchmark stock index that was down 0.5 per cent. — Reuters