Clearbridge Health Limited - Phillip Securities 2019-12-16: An Early Entrant In Asia

CLEARBRIDGE HEALTH LIMITED (SGX:1H3) | SGinvestors.io CLEARBRIDGE HEALTH LIMITED (SGX:1H3)

Clearbridge Health Limited - An Early Entrant In Asia

  • Penetrating high-growth in Indonesian and Philippine healthcare markets.
  • Acquires asset-light healthcare franchises that yield recurrent revenues and revitalised through expansion in capacity, network and capabilities.
  • Maintain BUY with an unchanged target price of S$0.26. We used a DCF valuation to capture the full benefits of Clearbridge Health’s impressive growth trajectory over the next five years.



Clearbridge Health Limited - Company Background



Clearbridge Health Limited - 2020 Investment Merits/Outlook


Penetrating high-growth healthcare markets in Indonesia and the Philippines.

  • Clearbridge Health has entered the fast-growing healthcare markets in Indonesia and the Philippines through two acquisitions. Both countries rank among the lowest in Asia in terms of the number of hospital beds and health professionals per capita. Healthcare spending in both countries has been growing at around 9 - 10% p.a.

Creating a recurrent revenue stream in healthcare.

  • A key feature of its new Indonesian business is recurring revenue. Renal dialysis is a lifetime treatment, and Clearbridge Health expanded from 15 hospitals at acquisition to 21 currently and another 13 under renovation.

Targeting and revitalising profitable segments.

  • Clearbridge Health acquires asset-light, fast-growing healthcare segments. After the acquisition, Clearbridge Health grows the businesses through expansion in capacity, network and capabilities.


Recommendation

  • Maintain BUY with an unchanged target price of S$0.26.
  • We used DCF valuation to capture full benefit of Clearbridge Health impressive growth over the next 5 years.





Phillip Research Team Phillip Securities Research | https://www.stocksbnb.com/ 2019-12-16
SGX Stock Analyst Report BUY MAINTAIN BUY 0.260 SAME 0.260



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