KUALA LUMPUR (Feb 3): RHB Research Institute has raised the fair value for KPJ HEALTHCARE BHD [] to RM5.09 (from RM4.71) after ascribing a higher CY12 target PER of 20.5 times.
In its research note on Friday, it also maintained an Outperform outlook on KPJ.
RHB Research said the anticipated listing of Integrated Healthcare Holdings (IHH) in mid-2012 is expected to stir up investor interest and drive a rerating of the healthcare sector.
“We expect KPJ’s valuations to move closer to the new benchmark set by IHH over the longer term. Furthermore, KPJ’s aggressive local expansion plans should help the company maintain its dominance in Malaysia over the longer term,” it said.
RHB Research said its FY11-13 earnings forecasts are tweaked by -1.1%, -10.0% and +1.0% respectively after adjusting for the rescheduled openings of the Bandar Baru Klang Specialist and Muar hospitals and updating for ESOS shares.
In its research note on Friday, it also maintained an Outperform outlook on KPJ.
RHB Research said the anticipated listing of Integrated Healthcare Holdings (IHH) in mid-2012 is expected to stir up investor interest and drive a rerating of the healthcare sector.
“We expect KPJ’s valuations to move closer to the new benchmark set by IHH over the longer term. Furthermore, KPJ’s aggressive local expansion plans should help the company maintain its dominance in Malaysia over the longer term,” it said.
RHB Research said its FY11-13 earnings forecasts are tweaked by -1.1%, -10.0% and +1.0% respectively after adjusting for the rescheduled openings of the Bandar Baru Klang Specialist and Muar hospitals and updating for ESOS shares.
