KUALA LUMPUR, Jan 28 (Bernama) -- Bursa Malaysia snapped its five-day winning streak to close lower on Wednesday, as investors took profit following a cumulative gain of 4.25 per cent over the past five sessions, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 14.76 points or 0.83 per cent to 1,756.49 from Tuesday’s close of 1,771.25. The market bellwether opened 1.46 points lower at 1,769.79, marking the day’s high, and hit a low of 1,750.05 during the mid-afternoon session. Market breadth was negative with losers trouncing gainers 876 to 384, while 525 counters were unchanged, 964 untraded and 94 suspended. Turnover improved to 3.65 billion units worth RM4.41 billion from Tuesday's 3.58 billion units worth RM4.46 billion.
Maintain neutral call with lower target price (TP) of RM6.08
IHH’s 3QFY16 revenue was RM2.44bn (+18.3% YoY), while its 9MFY16 stood at RM7.4bn (+20.0% YoY). Excluding exceptional items, IHH’s 3QFY16 core net profit increased 73.2% YoY, bringing its YTD core net profit to RM643.5m (+9.5% YoY), below our and consensus’ estimates, accounting for 60.7% and 65.1% of full year estimates respectively. The Group expects the pre-operating and start-up costs of new operations to partially erode its profitability during the initial stages. In addition, staff cost is expected to rise due to increased competition from trained healthcare personnel. As such, we adjust our cost accordingly and cut our earnings estimates by 13%-23% for FY16-18F and maintain our Neutral call on IHH with a lower TP of RM6.08 (previously RM7.02), premised on our FY17 blended EV/EBITDA.
- Parkway Pantai’s (PPL) revenue was higher by 19.6% YoY to RM1.54bn for 3QFY16, while EBITDA increased 14.2% YoY to RM354.4m, on the back of continuous ramp up of its Mount Elizabeth Novena Hospital in Singapore as well as contribution from its newly opened hospitals and acquisitions made in 2015. On operations, number of inpatient admissions in Singapore and Malaysia increased by 13.6% and 9.0% respectively. Its revenue per inpatient admissions in Singapore declined by 3.0%, while Malaysia increased by 10.2%. Its earnings was partially eroded by higher operating expenses and staff cost, start-up losses of RM2.3m from its new hospitals in Malaysia as well as pre-opening expenses of RM19.7m incurred for its coming Gleneagles Hong Kong.
- Acibadem’s revenue increased to RM808.7m (+17.8% YoY) in 3QFY16, while EBITDA declined by 10.3% YoY, on the back of higher staff costs as well as operating costs and rental expenses due to further depreciation of Turkish Lira (TL) against USD. EBITDA QoQ declined by 47.5% due to lower revenue and patient volumes during the summer months and long period of holidays to celebrate Eid festivities. Overall, Acibadem’s inpatient admissions jump by 47.9% YoY, mainly contributed by Acibadem City Group. Nevertheless, its revenue per inpatient declined by 9.7% YoY.
- Project progress. The latest project to be completed will be Gleneagles Hong Kong and Acibadem Altunizade in Istanbul, which is expected to complete in the 1st half of 2017. While Acibadem Atasehir in Istanbul, Pantai Hospital Kuala Lumpur and Gleneagles Medini, are all targeted to complete by end-2017 (Table 2)
Source: PublicInvest Research - 25 November 2016
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