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 (SGX:1H3) began in 2010 with a focus on the medical technology industry. It made its first investment in BIOLIDICS LIMITED (SGX:8YY) in 2011, listed on the Catalist in December 2018. It then co-founded Sam Lab in 2011. In 2017, Clearbridge Health acquired Clearbridge Medical Group that owned two medical clinics.
- Clearbridge Health listed on December 2017 at S$0.28 a share.
- 2018 was a watershed year as Clearbridge Health expanded into high growth markets of Indonesia, by acquiring a renal dialysis operator, and the Philippines, by acquiring a large medical facility. There is a further proposal to acquire 12 clinical diagnostic laboratories in Indonesia.
- See Clearbridge Health Share Price; Clearbridge Health Target Price; Clearbridge Health Analyst Reports; Clearbridge Health Dividend History; Clearbridge Health Announcements; Clearbridge Health Latest News.
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
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https://www.stocksbnb.com/
2019-12-16
SGX Stock
Analyst Report
0.260
SAME
0.260
