IHH    Last:2.8   -

medical stock that worth look upon

IHH Healthcare Bhd has set aside RM3.4 billion to add 3,000 beds across its 37 hospitals in 10 countries for the next three years, said managing director and chief executive officer Dr Tan See Leng. IHH now has more than 6,000 beds in the 37 hospitals.

http://www.nst.com.my/node/4768

 

IHH to take up Healthscope?

WSJ carried an article today on IHH's alleged interest in bidding for Australia's Healthscope (HSP US$5bn), put on the block by TPG and the Carlyle Group. We looked at HSP's valuations and do not think that there will be over-leverage issues should IHH bid and succeed. Our estimates and SOP target price are unchanged at this stage.

We continue to like IHH for its relentless earnings growth from what appears to be greater operating leverage of high-capex assets, a stronger balance sheet and better cashflow. An explicit dividend policy, a rarity for a company in expansion mode, provides added comfort. We continue to rate the stock an Add.     ...last:$1.460...     more

 

CIMB notes that 4Q13 and FY13 core EPS were in line, accounting for 30% and 102%, respectively, of house FY13 forecast. SOTP drops on the back of a 26-33% downward adjustment to our FY14-15 EPS estimates, as the house take into consideration FX translation effects going forward. However, the house still find enough growth for earnings, and what is turning around appears to be greater operating leverage from high capex assets, a stronger balance sheet and better cashflow. This prompted an explicit dividend policy, a rarity for a company in expansion mode. The house believes that the bulk of its big earnings will come in 2H14, with some of its newer hospitals driving operating efficiencies going forward. While there seems to be better value being offered by its regional peers, think that the more strategic locations of IHH?s assets in Asia and Turkey will play anchor roles in the medical tourism theme. The house adds that savvy cashflow management, structured capex programme and dividend policy provide the justifications to own this stock once again. Upgrade IHH to an Add from a Hold with TP $1.63

 

Saw this article: http://www.thestar.com.my/Business/Business-News/2014/01/29/Turkey-turmoil-affects-local-firms-MAHBs-unit-posts-higher-loses-while-IHH-operates-a-chain-of-15-h/

Volatility in the foreign exchange market is wreaking havoc on Malaysian companies with big business overseas particularly those with operations in Turkey as it is among the hardest hit following the plunge of the lira. A company that could be affected by the turmoil in Turkey is IHH Healthcare Bhd. Analysts said IHH derived 40% of its revenue from 60%-owned Acibadem Holding, the operator of 15 hospitals in Turkey. The lira had tumbled 12.4% against the US dollar since the end of October 13.....

< IHH's full year results affected and turmoil being priced in? Not vested.>

 

Oversold! Will see rebound from 1.45 like last time?

 

2014-01-06 00:59:00

 

 

 

Released 3Q13 results which offered no surprises, despite seasonal effects. The good news is the growth story at its new hospitals, while the bad news is confirmation of house view that rate charges at Singapore?s hospitals have peaked. Its valuation remains the only ugly facet of this story. 3Q13 and 9M13 core earnings were in line, accounting for 21% and 78% respectively of the house FY13 numbers. Make no changes to forecasts and SOTP TP stays intact. Overall, like the IHH franchise, but struggle to find any near-term catalysts, as the house expect better earnings only in FY15-16, and current valuations is decidedly unexciting. Maintain Neutral with $1.72 TP.

 

CIMB downgrades to Neutral with TP $1.72. Note that IHH?s stock has done very well since its IPO in Aug 12. It is now the most expensive stock to own among ASEAN hospital stocks (aside from Siloam International), even if we take into account its most extensive footprint. IHH has so far executed well in all its new markets, thanks to its vast experience accumulated over two decades. However, believe that there are difficulties from operating a larger and more complex organisation following its rapid addition of new hospitals and healthcare businesses. Though IHH should continue to benefit from growing private-healthcare consumption and revenue intensity in all its three markets, improving entry points and fundamentals for its regional peers may provide investors with better short- to mid-term returns. As such, the house downgrades IHH to Neutral from Outperform, advocating a switch to BGH and RFMD.

 

Y suddenly so bullish?

 

IHH Healthcare-Likely further correction after key bearish breaks

By Philip Teo  Likely further correction after key bearish breaks Key supports breached.  IHH Healthcare could see more downside ahead after initiating strong bearish breaks below both its 6-month uptrend support and $1.55 key horizontal support on heavy volume yesterday. Indicator is bearish. The MACD has just plunged below the centerline as well, suggesting that the downside momentum is accelerating. Next key support at $1.42.  The counter could possibly slip further towards the next key base at $1.42 (key resistance-turned-support) in the weeks ahead. Immediate resistance at $1.55.  Meanwhile, $1.55 is now the newly established support-turned-resistance.

 

UOB Kay Hian note that 1H13 earnings rose 29% y/y and represents 44% of consensus estimates. Near-term risks are amplified on the back of the uncertain macroeconomic picture. Execution of its pipeline poses key challenges for the group. Currency volatility could impact bottom-line. Overall, house maintains SELL with a revised target price of $1.43.

 

Healthcare services provider  IHH Healthcare  reported a 61% fall in second-quarter net profit to 156.8 million ringgit ($60.4 million) as its earnings last year were boosted by the sale of medical suites.

...last: $1.55...

 

Thanks for the news, bought 26000 last week @ 1.59. Hoping for the best.

 

 

 

1Q core net profit (excl. exceptional items) of RM133.5m was 17% higher than a year earlier, accounting for c.18% of our FY13F earnings

Revenue and EBITDA grew by 29% and 24% to RM1.6bn and RM347.6m respectively, partly driven by a full quarter of Acibadem's consolidation in 1Q13, compared to only two months a year earlier. In addition, the Group also saw revenue growth from existing operations and contribution from new hospitals

EBITDA margins (excl PREIT) weakened marginally by 0.8ppts to 21.7% (1Q12: 22.5%) as it saw continued losses from its new hospitals

It also faced cost pressures from personnel and operating lease expenses, particularly its Singapore hospitals


We estimate FY13F EBITDA margin to be 20.8%


Novena Hospital posted a smaller EBITDA loss of RM3m (from -RM15.6m/ -RM16.4m in 1Q12/ 4Q12) This was achieved on the back of higher revenue of RM37.2m and streamlining of its operating costs Hence, it seems like management's target of achieving EBITDA breakeven by 1H13 is within reach We raised our TP to S$1.55 (RM3.73) on the back of a higher EV/EBITDA multiple of 22x (from 18x)  on FY13F/14F earnings for its Singapore operations and its international operations (14x, from 13x) with the re-rating of peers

We also adjust for the higher market values for its holdings in listed entities, namely PREIT and Apollo Hospitals

Maintain HOLD, given its relatively rich valuations at 41x/35x on FY13F/14F earnings        ,,,last done: $1.625...

DBS VICKERS Securities

 

 

IHH (Q0F.SG) is flat at $1.33, despite a generally buoyant market, after dropping 3.3% on Tuesday, with three analysts saying they weren't aware of a reason for the decline.

IHH's expansion plans are on track, but start-up costs should exert pressure on margins, creating a drag on FY13 EPS growth, Nomura says in a note after a company visit.

" Management conceded that its expansion in Turkey and Singapore will continue to drag margins but core operations remain strong as volumes and average selling prices are progressing well."

The house views IHH's valuations as expensive relative to its growth prospects, and notes its EPS forecasts and target price are below consensus

" We see risks to consensus earnings, particularly arising from greater-than-expected losses at Mount Elizabeth Novena." It expects Mount Elizabeth Novena break-even at the operating level in 2015, while a slower economy could affect patient admissions, with potential further drag from competition from the Farrer Park Hospital completion this year.

It keeps a Reduce call with MYR2.81 ($1.13) target on the Malaysian-listed share (5225.KU). Its Malaysian share is up 0.9% at MYR3.24.

 

Still bleeding today. Malaysian stocks 'tak boleh' liao. All overbought. Good luck. 

iPunter      ( Date: 22-Jan-2013 08:03) Posted: Do you think it has anything to do with the forthcoming election in my?... bishan22      ( Date: 22-Jan-2013 07:45) Posted: Yesterday drop looks like a goner. Good luck.

 

Do you think it has anything to do with the forthcoming election in my?...

bishan22      ( Date: 22-Jan-2013 07:45) Posted: Yesterday drop looks like a goner. Good luck.