Hong Leong reiterates "buy" call on IHH (5225)

KUALA LUMPUR: Hong Leong Investment Bank (HLIB) has
reiterated a
"buy" rating on Asia's largest hospital chain operator, IHH Healthcare
Bhd, with sum-of-parts derived target price of RM3.49.

It said
the company has positives such as strong brand name, booming medical
tourism, high demand for quality healthcare services, and continuous
expansions complemented by an education arm.

"Excluding the
sale of medical suites in Mount Elizabeth Novena Hospital and
Specialist Centre (Novena), the first half of 2012 revenue of RM2,764.1
million and core net profit of RM250.3 million represented year-on-year
growth of 65 per cent and 35 per cent respectively," it said in a
research note today.

Although the core net profit only
accounted for 43 per cent of its full-year estimates, HLIB considers it
as within expectations, considering more beds will be operational in
the second half of this year according to IHH's expansion plan
and seasonality factor. --BERNAMA