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MayBank Kim Eng
UG Healthcare: New capacity cushioned weaker ASP; D/G to HOLD
Results in line; Higher volume offset weaker ASP FY16 was in line with our expectation; core earnings grew 37% YoY due to increase in production volume. However, 2H16 core earnings fell 31% HoH due to lower ASP and gross margin from more competition. Management said ASP and gross margin have bottomed and performance should improve, driven by capacity expansion. Expansion will lift FY17 capacity by 26%. We cut FY17-18F EPS by 17-21% after reducing our ASP. Our TP is reduced to SGD0.37 from SGD0.52. Downgrade to HOLD for lacklustre growth.
https://factsetpdf.maybank-ke.com/PDF/33272_CN__1a2055a3e0c848049618bed4866cebc5.pdf
Phillip Securities
Zhongmin Baihui Retail Group Nanjing store closed; Return to home ground
- 1H16 Revenue/PATMI met 55%/148% of our FY16 expectations; excluding impact from Nanjing store closure, PATMI met 60% of our FY16 forecast
- Two new stores by 2H16; expect new stores to continue to support topline growth
- Minimal impact from Nanjing Nanzhan store closure, financial gains are majorly noncash in nature, while termination compensation costs should be manageable
- Declared an interim dividend of 1.0 Singapore cents per share (same as 2Q15)
http://internetfileserver.phillip.com.sg/POEMS/Stocks/Research/ResearchCoverage/SG/ZBR20160826.pdf
800 Super Holdings Ltd
Delivered bottom line growth
- FY16 S$156.4mn revenue in line with our expectations of S$159.6mn
- FY16 S$16.7mn NPAT missed our expectations of S$19.5mn by 14%
- 2.5 cents final dividend declared, 26.7% payout (FY15: 2.00 cents, 29.4% payout)
OCBC Investment Research
RAFFLES MEDICAL | HOLD
GROWTH STORY INTACT
- Singapore remains as attractive medical hub
- RMG has diversified int’l patients mix
- Long term growth story intact
While there is an inherent risk from medical tourism for Singapore’s private healthcare sector, we believe the change was not significant for Raffles Medical Group (RMG), on the back of a diversified international patients mix.
Besides relying on local patients and medical tourism, we highlight again the importance of overseas expansion to ensure long term growth potential. We understand that the clinics under International SOS (MC Holdings) and its subsidiaries (MCH) have been doing well in its countries, including Cambodia and Vietnam.
The group’s Shanghai hospital project is also slated to be ready in 2018.
Post-2Q16 results, we had our HOLD rating unchanged with a fair value estimate of S$1.54 on the stock, noting some near term cost pressures, which resulted in a trim to our bottomline forecasts.
Nonetheless, we continue to like the long term growth here, underpinned by the group’s expansion plans.
Considering recent price dips, we advocate longer term investors to consider accumulating at prices below S$1.48.
UOB KayHian
IHH Healthcare HOLD (Maintained)
IHH Healthcare (IHH SP) 1H16: Earnings Falter On Cost Pressure IHH’s 1H16 adjusted earnings track below our and consensus forecasts.
While revenue growth remained healthy, underpinned by growth in inpatient volumes and revenue intensities across most home markets, earnings were dragged by start-up costs in new hospitals and higher staff costs. We lower our FY16-17 net profit estimates by 6-12% to account for higher operating costs. Maintain HOLD with a lower SOTP target price of S$2.14 (previously S$2.31). Entry price: S$1.90.
https://research.uobkayhian.com/content_download.jsp?id=35802&h=97e232de59f809f5a1cdf88e1240b08
