Some thoughts:

1) KPJ (Johor Specialist) and IHH are the two largest players of similar size. Considering the huge difference between their market capitalization, KPJ looks very cheap.

2) IHH may be acquiring Sime Darby Ramsay Healthcare from Sime Darby Holdings for RM 5.67 billion, which is approx 1/3 of Sime Darby Holdings' market cap. The transacted price is almost 80x price to earnings (PE) multiple.

3) Sunway Bhd's disposal of a 16% stake of its healthcare unit to the Government of Singapore Investment Corp (GIC) for RM 750 million is valuing the arm at 270x PE.

4) Thomson Hospital at Kota Damansara has completed its expansion plan and is commencing its operation. Its earnings could surge in the upcoming quarters.


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Information was obtained from the industry report produced by Protege Associates in Cengild Medical IPO prospectus