M & A Securities downgrades IHH Healthcare to Hold, ups fair value to RM4.31

Business & Markets 2013
Written by theedgemalaysia.com
Monday, 27 May 2013 08:39
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KUALA UMPUR (May 27): M & A Securities Research has downgraded
IHH Healthcare Bhd to a Hold from Buy with a higher fair value of
RM4.31 (from RM3.89) after the company announced that its net profit
for the first quarter to March 2013 stood at RM127.3 million, marginally
higher than RM122.8 million achieved in the previous corresponding
quarter.
IHH Healthcare had said revenue for the quarter grew by 29% to
RM1.62 billion from RM1.26 billion in the same period last year.
In a note Monday, M & A Securities said IHH Healthcare’s net profit
1Q13 recorded at RM167.29 million, fell by 11.53% q-o-q and 3.80%
y-o-y from RM189.09 million in 4Q12 and RM173.90 million in 1Q12.
EPS1Q13 recorded at 1.58 sen, was -28.18 below consensus estimate
of 2.20 sen and -48.20% below our estimated of 3.05 sen.
“We revised downgrade our Buy call to Hold and revised upwards the
Fair Value of IHH to RM4.31 from RM3.89 by pegging its peers P/E
average of 35.42 to its EPS13f at 12.18 sen as the P/E multiple for IHH
has increased,” it said.