Healthcare Sector / Raffles Medical Grp

Healthcare Sector / Raffles Medical Grp: IHH could be valued at 35x P/E. Note also that Healthway Holdings currently trades at approx. 40.5x FY12E P/E. Raffles Medical Grp trades at just 22.9x P/E. Most of Raffles Medical’s shareholders are institutions, with stakes less than 5%. Given Raffles Medical’s consistent and stable growth, unlikely that these shareholders would reduce stakes just to free up funds to invest in another healthcare group. We do not rule out a potential play up of Raffles Medical prior to IHH’s listing next mth.