IHH HEALTHCARE BHD (+ve)
IHH Healthcare (Fundamental: 1.65/3, Valuation: 0.5/3) — which is 43.9% owned by Khazanah Nasional — is the world’s second-largest listed healthcare operator. It has a strong presence in Malaysia, Singapore and Turkey as well as footprint in India, Vietnam, UAE, China and Hong Kong.

In Malaysia, it operates 12 hospitals under the “Pantai” and “Gleneagles” names, and also provides healthcare education under “IMU Health”. 

Last year, revenue increased 8.7% to RM7.3 billion, while net profit rose 19.5% to RM754.3 million. This was attributed to its largest operating subsidiary, Parkway Pantai, which saw revenue grow 12.5% to RM4.4 billion. 

This year, IHH expects to open 2 new hospitals domestically — namely the Gleneagles Kota Kinabalu and Gleneagles Medini Phase 1a — in addition to numerous ongoing projects, both local and abroad. It was recently reported that the company had submitted first-round bids for Malacca-based Mahkota Medical Centre. 

IHH currently trades at trailing 12-month P/E of 65.2 times.

This article first appeared in The Edge Financial Daily, on May 8, 2015.