InvestIdeas

AmInvestment retains Hold on IHH after China expansion

AmInvestment is retaining its Hold call for IHH Healthcare Bhd with an unchanged sum-of-parts based fair value of RM7.20 a share.

It commented on Thursday IHH is opening a second tertiary hospital in China following a land contract signed between its JV and the land authority of Shanghai.

IHH is currently operating nine clinics in Shanghai, Beijing and Suzhou and a clinic in HK. It is also constructing the 500-bed Gleneagles HK – slated to open in early 2017.

Maintain Hold; while it is fairly valued, we like IHH for its diversified footprint and better margins.

It is currently trading at 51 times price-to-earnings – close to our implied target PE of 57 times and on par with its three-year average”

Source: The Star

http://www.thestar.com.my/business/busi ... expansion/

Trio of troubles has Malaysia's IHH losing US$800 million in value

1. A whipsawing Turkish lira
2. A major shareholder, EPF, cutting its stake and
3. Continued uncertainty over a plan to buy Fortis Healthcare

Source: The Edge

https://www.theedgesingapore.com/?q=tri ... lion-value

not vested

Dec 2, 2019

Foreign patients’ growth in key markets

9M19 core profits fell on higher interest expenses and forex /fair value losses; mitigated by better operational performance and contributions from new hospitals including Fortis

9M19 revenue and EBITDA (ex-MFRS16) grew on constant currency basis

Key highlights include strong operational performance in Singapore and Malaysia, EBITDA margin growth, opening of Gleneagles Chengdu, Gleneagles HK’s additional beds and reduction of non-TRY debt to below US$200m by year-end

Maintain BUY; TP of RM6.40

Source: DBS

https://researchwise.dbsvresearch.com/R ... =faaefkhab

9M19: Mixed Bag As Results Disappoint

9M19 core earnings fell 8% yoy, below expectations.

Core markets remained as positive bright spots, displaying healthy growth despite their maturity. Acibadem and India eked out decent operational stats with Fortis growing margins for the fourth consecutive quarter.

GHK remained a drag. While we like IHH, teething externalities may represent an impediment to its earnings delivery and a rerating.

Maintain BUY with a lower SOTPbased target price of RM5.93 (from RM6.50).

Source: UOBKH

https://research.uobkayhian.com/content ... 7fd0f801b7

not vested

Maintain BUY, lower TP to RM6.15.

We maintain our BUY rating on IHH Healthcare (IHH) but lower our target price (TP) from RM6.40 to RM6.15.

We remain positive on IHH’s growth plans, with a pipeline of new hospitals in China and potential escalation in expansion momentum in India despite near-term headwinds from COVID-19 and gestation period of new hospitals.

Trading at 1.5 standard deviation (SD) below its historical average, we believe that IHH’s valuation is attractive to ride on recovery post re-opening of the economy.

Valuation
We maintain our BUY rating but lower TP to RM6.15 from RM6.40, based on sum-of-parts (SOP) valuation methodology by geography.

Source: DBS

https://www.dbs.com.sg/treasures/aics/s ... IHH_MK.xml

not vested

Revenue intensity driving core profitability

1Q24 core net profit (ex.MFRS129) of RM586.4m was ahead of expectationsnat 28.1%/32.9% of our/Bloomberg consensus’ FY24F estimates.

An increase in revenue intensity across all key operating regions supported the record revenue in 1Q24, translating into an improved EBITDA margin.

Reiterate Add with an unchanged SOP-TP of RM7.88.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... 86857C42D1

not vested

IHH Healthcare Berhad (SGX: Q0F)

IHH Healthcare is an integrated healthcare provider with a portfolio of hospital brands such as Acibadem, Gleneagles, Fortis, and Parkway across Singapore, Malaysia, and Turkey.

The group released its first quarter of 2024 (1Q 2024) earnings recently which saw revenue hit RM 6 billion for the first time, up 16% year on year.

Net profit, however, tumbled by 45% year on year to RM 768 million because of exceptional, one-off items.

Excluding these items, the core net profit for the healthcare player would have risen 22% year on year to RM 402.8 million.

IHH Healthcare also generated a positive free cash flow of RM 163.4 million, though this was down around 60% year on year from the previous year’s RM 398.4 million.

Post 1Q 2024, the group officially opened the Mount Elizabeth Proton Therapy Centre in Singapore, being the first healthcare provider in the country to provide this specialised and advanced cancer treatment option.

The group is confident of its growth and aims to add close to 4,000 beds in the next five years.

Source: Smart Investor

not vested

Steady earnings amid payor pressures

Maintain BUY and SOTP-TP of MYR7.97

1H25 results were in-line with our/consensus expectations on the back of strong revenue intensity and stable EBITDA margins across all key segments, despite payor pressures and macro/regulatory headwinds.

2H25 outlook remains bullish on higher surgical intensity and stable margins, supported by its diversified portfolio.

We make no changes to our forecasts.

Maintain BUY with an unchanged SOTP-TP of MYR7.97.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/483381.pdf