DBS starts IHH Healthcare at 'buy' (5225)

SINGAPORE: DBS Vickers initiated coverage of IHH Healthcare with a 'buy' rating and target price of S$1.38, citing positive industry trends in the region.
At
0223 GMT(10.23 a.m.), IHH Healthcare shares were up 0.4 percent at
S$1.245, 11.9 percent above its initial public offer price of S$1.113.
IHH made its Singapore market debut on July 25, after raising $2.1
billion in its IPO.
IHH, one of the largest healthcare providers
in the world, is expected to add more than 3,300 beds in 17 hospitals,
bringing the total number of beds it owns to 8,350, DBS said.
The
company is also likely to benefit from Asia's ageing population,
developing healthcare markets, rising affluence and the growth of
medical tourism in the region, DBS said.
The brokerage values
IHH's shares at 36 times its price-to earnings for 2013, and expects
the company to see annual revenue grow at an average rate of 16.4
percent for 2011-2014, driven by expanding network and higher patient
load. - Reuters