M & A Securities maintains Buy on KPJ Healthcare, ups fair value to RM7.79

Business & Markets 2013
Written by theedgemalaysia.com
Thursday, 23 May 2013 08:45
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KUALA LUMPUR (May 23): M & A Securities Research has maintained
Buy on KPJ HEALTHCARE BHD [] with a higher fair value of RM7.79
(from RM7.57) after KPJ Healthcare's net profit fell-24.7% to RM25.09
million in the first quarter ended March 31, 2013 from RM33.3 million a
year ago due to losses sustained by the group's newly opened
hospitals.
KPJ had said on Wednesday that its topline, however, increased 4% to
RM545 million from RM525.6 million a year ago due to higher revenue
from its new and existing hospitals.
In a note Thursday, M & A Securities said KPJ’s turnover rose 3.52%
q-o-q and 3.70% y-o-y to RM545.05 million in 1Q13 compared to
RM526.53 million in 4Q12 and RM525.62 million in 1Q12.
“The higher turnover was attributed to increasing turnover of the existing
hospital and newly opened hospitals in the group.
“We maintain our Buy call on KPJ and revised upwards the Fair Value to
RM7.79 from RM7.57 previously by pegging its P/E multiple to its
regional peer Raffles Medical Group,” it said.