HEALTH MANAGEMENT INTL LTD
588.SI
Health Management Intl - 3QFY17 core PATMI up 12%
- Health Management International (HMI) reported its 3QFY17 results, with revenue up 6.7% YoY to RM107.7m, mainly due to higher patient load and average bill sizes in its two hospitals – Mahkota Medical Centre and Regency Specialist Hospital.
- We note that ‘other losses’ of RM0.3m was recorded vs. a RM3.7m gain last year, attributable to the weakening of MYR resulting in FX charges.
- In addition, the acquisition of non-controlling interests in its two hospitals resulted in a one-off incurrence of RM7.3m in professional fees and other related costs. This acquisition was completed on 27 Mar. Thus the group recorded a net loss of RM1.6m, vs. a PATMI of RM8.7m in 3QFY16.
- Excluding non-operational and one-off items, core PATMI rose 11.6% to RM7.1m and 9MFY17 core PATMI was up 28% to RM21.6m.
- Looking ahead, 4Q17 and FY18 earnings should offer clarity to investors on earnings, given the consolidation of ownership in both hospitals and less one-off costs.
- We continue to believe the group is on a healthy growth momentum, backed by a multi-strategy approach and strong management team.
- We maintain our BUY rating and DCF-derived (base year FY18) fair value estimate of S$0.80.
Jodie Foo
OCBC Investment
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http://www.ocbcresearch.com/
2017-05-12
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