Thursday, July 26, 2012
IHH: CLSA initiates coverage with Buy Call and TP RM3.55. Note that IHH is set on a stellar 4yr Ebitda Cagr of 19% through strong growth in healthcare spending and medical tourism in its key markets of SG, Turkey and Msia. House value the company on a 28% premium to its peer EV/Ebitda based on Parkway’s historical premium over peers. Believe Co. is sitting on a sweet spot as healthcare in Asia and Central Europe is growing by leaps and bounds owing to the rise of middle class, population growth and a scarcity of healthcare services, which will fuel a move from overcrowded public hospitals into private hospitals where IHH will benefit given its market leading position in all its markets. House believe the company will command a premium over its peers given its larger size, superior geographical reach and growth potential. Value Co. on an 18.6X 13CL EV/Ebitda, a 28% premium over its peers, consistent with its previously listed Singaporean entity, Parkway.