Wednesday, 5 March 2014

IHH Healthcare

UOBKayhian on 5 Mar 2014

FY14F PE (x): 40.4
FY15F PE (x): 31.3
Still a high-growth engine in the near term as the group pushes on with its aggressive
expansion strategy. IHH will be adding close to 3,000 new beds from 2014-16 as part of
its RM3.4b capex plan, with a few more potential brownfield and greenfield projects
under evaluation. This will drive our projected 3-year revenue and earnings CAGR for
2013-16F of 17% and 27% respectively. Upgrade to HOLD with a revised target price of
S$1.38, based on our SOTP model. IHH is currently trading at 31x 2015F PE, in line
with peers’ average. Our target price implies 29x 2015F PE. Entry price is S$1.25.

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