PublicInvest Research
KPJ Healthcare - Undervalued Gem
PublicInvest
Publish date: Wed, 03 Apr 2013, 01:33 PM
PublicInvest
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An official blog in I3investor to publish research reports provided by PublicInvest Research team.
All materials published here are prepared by Public Investment Bank Berhad. For latest offers on Public Invest trading products and news, please refer to: https://www.publicinvestbank.com.my/pbswecos/default.asp
PUBLIC INVESTMENT BANK BERHAD (20027-W)
9th Floor, Bangunan Public Bank
6, Jalan Sultan Sulaiman, 50000 Kuala Lumpur
T 603 2031 3011 | F 603 2272 3704 | Dealing Line 603 2260 6718
All materials published here are prepared by Public Investment Bank Berhad. For latest offers on Public Invest trading products and news, please refer to: https://www.publicinvestbank.com.my/pbswecos/default.asp
PUBLIC INVESTMENT BANK BERHAD (20027-W)
9th Floor, Bangunan Public Bank
6, Jalan Sultan Sulaiman, 50000 Kuala Lumpur
T 603 2031 3011 | F 603 2272 3704 | Dealing Line 603 2260 6718
KPJ, at current valuations, provides a more attractive entry point to the healthcare industry. The Group benefits from a focus on its home market, being the largest hospital group in Malaysia. We also like the Group for their prudent expansion plans which will ensure future growth, but not at the expense of bottomline growth.
A cheaper entry to the healthcare industry. At conservative assumptions, KPJ remains an attractive buy as it is relatively undervalued compared to regional peers, with forward PE of 23x and 26x for FY13 and FY14 respectively compared to the regional average of 33x and 27x.
Maintain Outperform with adjusted TP of RM6.50. We are rolling forward our valuations to FY14 with new TP of RM6.50 based on forward PE of 25x, which is a 25% discount to IHH‟s forward PE. We are reducing our net profit forecast for FY13 to FY14 by 4% to 9% to account for a more conservative outlook, in view of the slower-thanexpected ramp-up of the Bandar Baru Klang Hospital and RS Bumi Serpong Damai in Indonesia, which will be further dragged by the opening of three new hospitals this year, ie Pasir Gudang Specialist Hospital, Muar Specialist Hospital and Sabah Medical Centre (SMC). Despite the drag, we still expect net profit growth to be decent in the next three years at 10% to 12%, while leaving room for positive surprises should the operations ramp-up faster than expected.
Source: PublicInvest Research - 03 Apr 2013
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Discussions
Be the first to like this. Showing 16 of 16 comments
hi Bongok, u oso can't afford RM1.00 for govt hospital treatment? hahaha. Pity on u. No wonder u dislike PTPTN...pity u boy...
2013-04-03 14:04
Bongok, u are everywhere, just like u want everything free. Piggy bank empty ke? Or u need donations?
2013-04-03 14:06
Hi Pig Rider Ranger or rather UMNO Ball Licker, I don't need 1UMNO things lah? Or useless people like Pig Rider Ranger needs it? haa haa haa??
2013-04-03 14:07
360 and 180 degrees pun tak tau.....macam mana mau Kira duit....BODOH babi ranger....hahaha
2013-04-03 14:22
Hahaha I am jealous of ppl who can count not those who cannot differentiate numbers and degrees.......nanti he shiok sendiri...
2013-04-03 14:57
Yes I panjat you to put up Pakatan flag.....u make sure u cuci yourself Dulu nanti my kaki kotor.....
2013-04-03 14:59
U panjat the electric poles to pasang the Pakatan flag...jadi u one of the many kulis of Pakatan doing the dirty jobs? Macam orang baruah lah...Ok that's fine...good...
2013-04-03 15:31
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CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
lotsofmoney
It can never beat 1Malaysia HealthCare..... RM 1.00 for everything !
2013-04-03 13:55