RHB sets higher earnings estimate for IHH

KUALA LUMPUR: RHB Investment Bank Research has upgraded IHH Healthcare Bhd to "buy" following an earnings revision as FY20 earnings beat expectations due to strong contribution from Singapore.

It said FY20 core net profit of RM715mil makes up 128% and 134% of its and consensus full-year expectations.

Moving forward RHB expects IHH's other markets' operations to show significant earnings improvement in FY21.

As vaccination efforts reach a larger percentage of the population, the research house expects Covid-19 to be gradually contained in 2H21.

"The trend of Singapore’s 4Q20 earnings, which outperformed even the pre-COVID quarter of 4Q19 shows that management’s strategy to improve ROE has started to bear fruit.

"This can be replicated in other markets that IHH is operating in," it said.

RHB raised FY21-22 earnings forecasts by 4-14% as it factored in higher patient volume and revenue intensity for Singapore and Greater China due to good performance from Gleneagles Hong Kong.

It raised the target price to RM6.15 from RM5.50 previously on 18.5x FY21 forecast EV/Ebitda or negative-0.5 standard deviation from its five-year mean.
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3

Next In Business News

CPI up 1.7% to 122.9 in March 2021
Maxis records 1Q net profit of RM334mil, declares 4 sen/share div
Digi posts RM264.8mil earnings in 1Q, declares 3.4 sen dividend
AirAsia Group expects 'clarity' on fundraising in 2-3 months
Pertama Digital keen to apply for digital banking license
KLCI holds firm as glove shares stay bullish
Ether plunges 10% a day after hitting record high
Petronas prices US$3bil bond offering
Ringgit opens weaker as greenback strengthens
Japan's factory activity improves in April but more virus measures loom

Stories You'll Enjoy